Executive Summary
Introduction
Market dynamics and drivers: how have consumers become more obese,
yet more obsessed with one diet than ever?
Getting inside Atkins
Who or what is driving growth in low-carbohydrate foods?
New product development: a lesson in innovation and caution
Potential problems of low-carbohydrate development: growth or
extinction?
Coping with competition: how are rival slimming foods coping with the
low-carbohydrate diet?
Industry opinion and consumer research
Chapter 1 Introduction
Summary
Low-carb diets are rooted in history
Low-carb consumers date back to 1863
Enter, Dr Robert Atkins
Getting to grips with the ‘science’ behind the Atkins diet
Exploring other low-carb diets
Obesity - this century’s massive problem
Why now? The appeal of low-carbohydrate diets
Opportunities for brands’ image revival
Ignoring the impact of Atkins and low-carbohydrate choice is not an option
Chapter 2 Market Dynamics and Drivers:
How Have Consumers Become
More Obese, Yet More Obsessed
with One Diet than Ever?
Summary
Obesity - a global issue
Defining obesity
The British perspective
Tackling obesity - the role of government, manufacturers and retailers
Manufacturers
Cadbury’s Get Active
America on the Move
“Fat tax”
Government questioning
Criticism against advertisers in the UK
The future
Portion size and labelling
The portion and value relationship
Increased calorie consumption - and more carbohydrates than ever
before
Managing consumer expectations
When did low-carbohydrate diets become popular in the U.S. and why?
Celebrity endorsement
Combating Atkins - how are foods forbidden on the Atkins Diet protecting
their market share?
Potatoes
Bakery products
Fruit juice
Pasta
Foods benefiting from the Atkins craze
Case study: How “I’m lovin’ it” is helping McDonalds stay on top
Conclusions
Chapter 3 Getting Inside Atkins
Summary
Company profile and history
2004 and beyond
The Atkins Lifestyle Food Guide Pyramid ™
What is the Atkins diet?
Stage one - Induction
Stage two - Ongoing weight loss
Stage three - Pre-maintenance
Stage four - Lifetime maintenance
An innovative company
Product innovation
The U.S. market
Atkins Direct
Atkins delivered to your home
Atkins and partners
The flip side of co-branded relations
Focus on the UK market
Manufacturing
Marketing
Distribution
Multiple activity and Atkins
Sainsbury's
Tesco
Safeway (Morrisons)
Somerfield
Waitrose
Marks and Spencer
Superdrug
Holland & Barrett
Atkins products currently available in the UK
Supplements
Case study: route to market - Atkins Advantage Bar
What the future holds in store for Atkins
Who or What is Driving Growth
in the Low-Carbohydrate Sector?
Summary
Regions in low-carbohydrate food growth
Learning from the U.S. - the state of the market
New product development
Number of products introduced specifically marketed as low-carb
Number of products making low-fat, no-fat or reduced-fat claims
Who are carbohydrate-conscious consumers?
Where do they live?
Low-carbohydrate food manufacturers: identifying the main players
Focus on Keto
Focus on Carbolite
UK distribution
Retail activity in the U.S. - path to growth for low-carbohydrate food and
drink
Multiple retailers
The Internet
Vending machines
Manufacturer activity
Case study: Wal-Mart
Case study: How PepsiCo has embraced the low-carbohydrate revolution
Pepsi Edge
Global low-carbohydrate market - territories for future development?
Australia
Europe
Germany
Italy
Chapter 5 New Product Development: A
Lesson in Innovation and Caution
Summary
The depth and pitfalls of the potential low-carbohydrate food sector
The crucial factors of taste and formulation
Re-packaging/labelling protein-rich products
Snacks
Chocolate
Savoury snacks
Doritos Edge
Other savoury snacks
Meat-based
Soy-based
Ready meals and prepared foods
Ambient meals
Home delivery
Functional foods
Sauces and condiments
Pasta
Bread, baked goods and cereals
Case study: Nimble Carbs So Low
Dairy and desserts
Ice cream
Drinks
Soft carbonates and still beverages
Alcoholic beverages
UK case study: Michelob Ultra
Assessing the U.S. market before launching products elsewhere
The UK market
Ingredients
Foodservice
Case study: Benjy’s
Chapter 6 Potential Problems of Low-
Carbohydrate Development:
Growth or Extinction?
Summary
Is there a solution to the global obesity epidemic?
Research highlights
Remembering that U.S. and European consumers are different
UK consumers - what do they really think of low-carbohydrate diets?
How to encourage more consumers to buy into the low-carbohydrate dieting
ethos
Coping with adverse coverage from a sceptical press
Earning consumer confidence through product safety
Performance is everything - the route of NPD in the UK and lessons to be
learnt in Europe
Getting the price right
Chapter 7 Coping with Competition: How
are Rival Slimming Products
Coping with the Low-
Carbohydrate Diet?
Summary
Slim-Fast and Unilever’s “Path to Growth”
Falling sales
Revamping Slim-Fast
Embracing low-carbohydrate in the U.S.
WeightWatchers
Growth pattern shows slump
Evolving formats for changing consumers
Tackling and conceding consumers’ appetite for low-carbohydrate products
Product innovation
Chapter 8 Industry Opinion and Consumer
Research
Summary
Introduction
What is the level of knowledge within your company about the low-
carbohydrate food sector?
Do you view the low-carbohydrate sector as an opportunity, or a threat?
Does your company already manufacture a product that is marketed or sold
as low-carbohydrate?
Do you think low-carbohydrate consumption is a “fad” that will impact the
food and drinks industry in the short term, or is it here to stay for the longer
term?
Which categories do you think have been most influenced by the low-
carbohydrate diet phenomena?
How important is it for UK retailers to accept products marketed as low-
carbohydrate in-store before the market opens up significantly?
How significant are U.S. companies such as Atkins Nutritionals and
Carbolite in the development of the low-carbohydrate sector in the UK?
Tackling the issue of obesity
How important do you, within the industry, consider the following factors to
be in the controversial debate on rising levels of obesity?
How important do you, as a consumer, consider the following factors to be in
the controversial debate on rising levels of obesity?
Nutritionally poor school meals and a lack of traditional mealtime
occasions must take part of the blame
Do you think the food industry should be held responsible for the rising
levels of obesity in children?
Consumer behaviour - survey findings
UK consumers think low-carbohydrate diets could be a short-term
fad
Have you been on a diet in the past 12 months? Are you currently on a diet or
healthy eating plan?
If you are currently on a diet, please tell us how long you have been on this
diet
Which of the following diets have you tried in the past?
Over the last six months, how often have you exercised, on average, per week
(20 minutes per session)?
Do you think low-carbohydrate eating is a “fad” that will impact the food and
drinks industry in the short term, or is it here to stay for the long term?
Have you purchased any products from the following companies/brands in
the past 12 months?
Chapter 9
Index
