US companies rush to meet the low-carb diet trend
From cereals to beers, companies are trying to introduce more and more low-carb products.
15/06/2004 The low-carb diet phenomenon sweeping America is forcing the food industry to scramble to meet the trend, although some analysts say the trend has peaked.
Despite a fierce debate over health and safety issues, tens of millions of Americans are watching their carbohydrates to combat bulging waistlines, prompting a rash of new offerings from fast-food eateries, traditional restaurants, food makers and retailers.
Coca-Cola and PepsiCo are rolling out low-carb beverages. Low-carb beers are on the rise. And low-carb specialty stores are cropping up in various communities.
Analyst Bill Pecoriello at Morgan Stanley contends that the low-carb craze appears to have peaked but still is having an enormous impact on the US food industry.
Morgan Stanley estimated 11 percent of US adults were on low-carb diets in the first quarter, up from 10 percent late last year. This could have peaked to as much as 13 percent in January as a result of New Year`s resolutions and a spike in sales of the "South Beach Diet" book
Companies are moving quickly to get in on the trend, they noted. This ranges from Kellogg`s new low-carb cereals to low-carb Doritos crisps from PepsiCo.
Steven Anderson, president and chief executive at the National Restaurant Association, noted that the industry is trying to meet the challenge of providing healthier options, and that with tens of millions of consumers watch carbs, "that`s a pretty target-rich environment."
Research group NPD has found nearly three out of four people are aware of the Atkins diet, 17 percent have tried it and about four percent of adults are currently following the popular diet.
The losers from the low-carb craze include bakeries, potato producers and the onetime high-flying doughnut company, Krispy Kreme, which has warned of lower profits for the upcoming fiscal year as a result of the low-carb craze.
The National Potato Promotion Board has launched a counter-offensive to talk about the nutrition benefits of spuds and warning about dangers of unbalanced diets. It notes that ketosis -- the fat-burning mechanism that is the basis for low-carb diets -- is "an abnormal metabolic state."
