Obesity, Low-Carb Diets and the Atkins・Revolution: Healthy profits from big issues in food and drinks

SUMMARY

This new report has been published in response to the obesity, low-carb dietand Atkins™ revolution currently sweeping across the US and UK food anddrink markets, which is expected to hit European shores imminently. The reportanalyses the food and drink products threatened by the low-carb diets and Atkins™revolution such as: biscuits, bread, rice, potatoes, pasta, breakfast cereals,pastry, pizza, curries, yoghurts, fruits, sugar, alcohol, caffeine, fruit juiceand milk.

This brand new issue-based report will provide you with an analysisof the controversial rising levels of obesity, the influence of low-carb dietsand the new strategies of the food and drink manufacturers and retailers in thisnew marketplace. The report will enable you to target the booming sectors forlow-carb development and understand the barriers to your company' s growthproviding you with successful strategies that you can implement in your food anddrink markets over the next five years ahead of your competitors.

Assess thepotential opportunities and threats across all food and drink categories, withcase-studies from key players such as: Atkins Advantage Bar™, Wal-Mart,PepsiCo, Nimble Carbs So Low, Michelob Ultra and Benjy' s.

Discover industryopinion from over 4000 senior executives in the global food and drink industrywith exclusive research revealing the shelf-life of low-carbohydrate food anddrink products. Analyse the findings from the exclusive consumer survey,conducted independently for the report, highlighting your customers' requirements from a low-carb and diet product.

TABLE OF CONTENTS

Executive Summary

Introduction

Market dynamics and drivers: how have consumers become more obese, yetmore 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 thelow-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 protectingtheir market share?

Potatoes

Bakery products

Fruit juice

Pasta

Foods benefiting from the Atkins craze

Case study: How "I' m lovin'  it"  is helpingMcDonalds 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

Chapter 4 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 anddrink

Multiple retailers

The Internet

Vending machines

Foodservice

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 dietingethos

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 belearnt 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-carbohydrateproducts

Product innovation

Chapter 8 Industry Opinion and Consumer

Research

Summary

Introduction

What is the level of knowledge within your company about thelowcarbohydrate 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 soldas low-carbohydrate?

Do you think low-carbohydrate consumption is a "fad"  thatwill impact the food and drinks industry in the short term, or is it here tostay for the longer term?

Which categories do you think have been most influenced by thelowcarbohydrate diet phenomena?

How important is it for UK retailers to accept products marketed aslowcarbohydrate in-store before the market opens up significantly?

How significant are U.S. companies such as Atkins Nutritionals andCarbolite 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 factorsto be in the controversial debate on rising levels of obesity?

How important do you, as a consumer, consider the following factors to bein the controversial debate on rising levels of obesity?

Nutritionally poor school meals and a lack of traditional mealtimeoccasions must take part of the blame

Do you think the food industry should be held responsible for the risinglevels of obesity in children?

Consumer behaviour - survey findings

UK consumers think low-carbohydrate diets could be a short-fad

Have you been on a diet in the past 12 months- Are you currently on a dietor healthy eating plan?

If you are currently on a diet, please tell us how long you have been onthis diet

Which of the following diets have you tried in the past?

Over the last six months, how often have you exercised, on average, perweek (20 minutes per session)?

Do you think low-carbohydrate eating is a "fad"  that willimpact the food and drinks industry in the short term, or is it here to stayfor the long term?

Have you purchased any products from the following companies/brands in thepast 12 months?

Chapter 9 Glossary and Terms

Index

List of Figures

Figure 3.1: The Atkins Lifestyle Food Guide Pyramid -

Figure 5.2: Doritos Edge

Figure 5.3: Nimble

Figure 5.4: Yoplait Ultra

Figure 5.5: Michelob Ultra

Figure 8.6: How well perceived is the low-carbohydrate food sector withinthe industry?

Figure 8.7: Is the low-carbohydrate diet regarded as a threat or anopportunity?

Figure 8.8: How many companies are manufacturing products marketed or soldas lowcarbohydrate or are planning to launch products in the future?

Figure 8.9: Short-term "fad"  or long-term trend: anindustry perspective?

Figure 8.10: Which categories do you think have been most influenced bythe low-carbohydrate diet phenomena now and in thee years'  time?

Figure 8.11: Which categories do you think have been most influenced bythe low-carbohydrate

diet phenomena now and in thee years'  time? (Continued)

Figure 8.12: How important do you, within the industry, consider thefollowing factors to be in the

controversial debate on rising levels of obesity?

Figure 8.13: Age ranking in consumer survey

Figure 8.14: How long is the typical diet?

Figure 8.15: What are the most popular diets?

Figure 8.16: Is exercise as important as dieting to consumers? How oftendo consumers exercise per week?

Figure 8.17: Short-term "fad"  or long-term trend: aconsumer perspective-

List of Tables

Table 4.1: Number of products introduced specifically marketed as low-carb-% of all NPD

Table 4.2: Number of products making low-fat, no-fat or reduced-fat claims

Table 8.3: Which categories do you think have been most influenced by thelow-carbohydrate

diet phenomena now and in thee years'  time?

Table 8.4: How important do you, within the industry, consider thefollowing factors to be in the

controversial debate on rising levels of obesity?

Table 8.5: How important do you, as a consumer, consider the followingfactors to be in the

controversial debate on rising levels of obesity?

Table 8.6: Have you purchased any products from the followingcompanies/brands in the past

months?