US snack maker Diamond Foods is planning to expand the production of its Kettle brand.

The company, which bought upmarket crisp business Kettle in February for US$615m, is in talks with state officials in Wisconsin and the city of Beloit to discuss the expansion.

"Diamond Foods is evaluating many factors, including financial incentives, to help the company decide where to locate additional manufacturing capacity. The company will expand production to meet growing consumer demand in Midwest, East and Southern markets for its Kettle Brand products," the company said. "A final decision on the plant's location is expected later this fall."