Low-carb industry expects shakeout

Filed under: Business — Tags: — @ May 29, 2004

Now that major food manufacturers such as Unilever, General Mills and Sara Lee are producing low-carb offerings, those in the industry expect they will drive out smaller food brands that were there in the beginning of the low-carb movement. Low-carb experts are also looking for the demise of smaller specialty stores thanks to major food retailers stocking their shelves with more low-carb products than ever.

“Over the next six months, there will be a significant amount of fallout,” said Matthew Wiant, chief marketing officer of Atkins Nutritionals. “Retailers would take anything you would give them six months ago. There was a shortage of product to meet the demand.” Now, corporate buyers can be more picky. “The retailers we are talking to are starting to say, ‘We are not going to take everything from everybody,’” he said. Wiant predicted that, of at least 2,000 products now, “I bet 500 won’t be on the shelf by the end of the year.”

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