What The Heck Is Nestle Doing Buying Jenny Craig?

Filed under: Business — @ June 24, 2006

I asked my wife a simple question today:

What is the most absurd company you can think of who would buy the weight loss business Jenny Craig, Inc.?

Without hesitation, she said Nestle, the world’s largest manufacturer of mostly junk food. And she was exactly right to the tune of $600 million this week!

Can you believe the company that makes Dreyer’s Ice Cream, Toll House Chocolate Chips, Stouffer’s meals, Hot Pockets, Sweettart, Spree, 100 Grand, Baby Ruth, Bottlecaps, Bit-O-Honey, Butterfinger, Gobstoppers, Goobers, Laffy Taffy, Lean Cuisine, Nerds, NesQuik, Crunch, Carnation Instant Breakfast, Turtles, Nips, Oh Henry!, PowerBar, Raisinets, Runts, and Willy Wonka, just to name a few, is now entering the DIET market of all things?!

Nestle is merely the first major food company trying to revamp its image in the mind of the consumer that it cares about helping you lose weight and get healthy. Expect this trend to continue as more deals like this one will undoubtedly be announced in the coming years.

bq. You cannot underestimate the gullibility of people who are so desperate to lose weight that they will equate Nestle’s affiliation with Jenny Craig in a positive manner regarding the entire Nestle product line. I’d love to know the psychology behind why this happens. Subway and Starbucks have a “healthy” image with consumers thanks to creative marketing efforts and now Nestle is hoping to do the same thing.

Click here to read more about the Nestle/Jenny Craig deal and see for yourself what Nestle Chairman and CEO Peter Brabeck-Letmathe says is the real reason why his company took over Jenny Craig. He’s full of you-know-what and I call him on it, too. :D


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