An era ends -Atkins is over
Acknowledging that one of the hottest dietary fads in history has finally run its course, Atkins Nutritionals Inc., the company that helped the red meat business to unprecedented sales growth and profitability, has filed for chapter 11 protection. Shrinking demand and a long list of new low carb products, backed with large ad budgets by major food businesses like Kraft and ConAgra, cut deeply into Atkins’ sales and market share.
The filing will be cheered, of course, by a baking industry that took a major sales dive as the Atkins diet grew in popularity. Spurred by the new food pyramid and its promotion of whole grains, bread has returned as a food item in good standing. Those of us in the meat business, though, should take a moment to give thanks to the good Doctor Atkins, who died from a fall several years ago, and mourn the passing of the fad.
The privately-held company had already reached an agreement with many of its lenders to trade equity for lowered debt (Author’s note: a deal that smacks of accepting junk bonds to help cut your losses).
According to President and CEO Mark S. Rodriguez, the company has “adjusted our organization to accommodate a smaller business.”
After bankruptcy, the company will “focus on its nutrition bars and shakes,” Rodriguez said (Author’s note: meaning Atkins will become a decidedly smaller company focusing on the second tier of C-Store display cases, right behind the meat snacks).
The filing will be cheered, of course, by a baking industry that took a major sales dive as the Atkins diet grew in popularity. Spurred by the new food pyramid and its promotion of whole grains, bread has returned as a food item in good standing. Those of us in the meat business, though, should take a moment to give thanks to the good Doctor Atkins, who died from a fall several years ago, and mourn the passing of the fad.
The privately-held company had already reached an agreement with many of its lenders to trade equity for lowered debt (Author’s note: a deal that smacks of accepting junk bonds to help cut your losses).
According to President and CEO Mark S. Rodriguez, the company has “adjusted our organization to accommodate a smaller business.”
After bankruptcy, the company will “focus on its nutrition bars and shakes,” Rodriguez said (Author’s note: meaning Atkins will become a decidedly smaller company focusing on the second tier of C-Store display cases, right behind the meat snacks).
posted by Chuck Jolley at Saturday, August 13, 2005
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