Pepsi, Diamond Play Healthy Snack-Food Game

The push into this space has already begun. Besides organic Tostitos and Baked Lay's, Pepsi is also starting to develop product lines that break away from their traditional image. Brands like TrueNorth nuts and Flat Earth veggie crisps have allowed the company to capture some of the market. Expect more of this.

Diamond Foods has a head start. The company's flagship Emerald Nuts brand has been a mainstream healthy snack for years and with the addition of Kettle Chips and Pop Secret, the company is rounding out its offerings nicely to hit all segments of the market.

Conversely, ConAgra is lagging. The company's main snacks, Slim Jims and Orville Redenbacher Pop Corn, don't allow for the same sort of competitive alignment that Diamond and Pepsi enjoy.

Pushing healthy snacks isn't new, but the successful small company model is. The big names can capture some of their success by copying the feel and exploiting their competitive advantages to do it cheaper. Food stocks never go out of style, so these companies have the opportunity for growth as well as safety. Consider Diamond and Pepsi. For further proof of the viability of healthy alternatives, count the number of bags that say "all natural," "baked," "organic" or "whole grain" in the chips aisle the next time you go to the grocery store.

-- Reported by David MacDougall in Boston.

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