Sun-Diamond Chief Resigns Over Dispute

The man hired to run Sun-Diamond Growers after the fruit and nut cooperative encountered severe financial problems in 1985 has resigned in a dispute over his authority.

David R. Newstadt said he quit as president and chief executive of the Stockton-based cooperative after learning the presidents of Sun-Diamond’s five units are autonomous. He said that without authority over the heads of the units that process and market individual crops, he couldn’t function effectively.

“If they are in charge, rather than the Sun-Diamond CEO, how do you intelligently allocate the sales force?” Newstadt asked. “I understand the other point of view as well, and it’s a very tricky problem.”

He contended that the five cooperatives oppose centralization because of problems under Frank Light.

Light’s tenure as CEO ended suddenly in December, 1985, amid disclosures that growers of two cooperatives had been overpaid $43 million.

William F. Allewelt, former Tri/Valley Growers president, took over Sun-Diamond for five months after Light left and will be interim president again, announced Bill Hosie, chairman of Sun-Diamond’s board.

Hosie said Allewelt has requested formation of a committee consisting of four of the presidents to help him run Sun-Diamond.

The four are the presidents of Diamond Walnut Growers, Valley Fig Growers, Sun-Maid Growers, which handles raisins, and Sunsweet Growers, which handles prunes. The fifth cooperative is Oregon-based Hazelnut Growers. The cooperative has 4,900 grower members.