Will Growing Interest In Almond Foods Be Dampened By Rising Prices?

The four-year drought in California is having a major impact on the price of protein-rich almonds –$4.50 a pound now, up from $3.30 a year ago – just as the tree nut has surged in popularity as a substitute for peanuts in a variety of products. Analysts say a fear of peanut allergies and an interest in healthier nut spreads are driving the surge. Sales of so-called specialty nuts, including almonds, have more than doubled in the U.S. in the last four years (to $449 million), while peanut butter sales have dropped by 4.1 percent. “There’s a little peanut-butter fatigue,” says a Bloomberg analyst who notes that people are willing to try different nut-based foods. This despite the fact that almond foods are now much pricier than peanut foods.