Tuesday, May 8, 2012

Weight loss proves a fickle business


Diet helps are often more effective at reducing dollars than pounds – for companies as well as customers.
The fat loss market, worth $11bn in store sales according to Euromonitor, should by privileges be a major successor of the times.

Obesity rates are rising worldwide and cash-strapped authorities (not to bring up limitless ladies magazines) are definitely advertising weight-loss.

The market is modern. Currently on the market are a dust which, spread on food, alerts a full abdomen to the brain; an dental sugar apply that reduces cravings; and, from Vietnam, a green tea and coffee mixture that prevents fat consumption and nutrient consumption. Or, at least, they purport to do so.

Yet for all the demand, innovation and breadth of players – from sectors as diverse as food, pharmaceuticals, broadcasting and cosmetics – weight loss has proved a fickle business for many: what is in fashion today can be usurped by tomorrow’s wonder pill or celebrity diet.

Weight Watchers, the US-listed group, has nearly half a century’s experience and is no stranger to fluctuating sales. “We’ve had ups and downs,” says David Kirchhoff, chief executive. “Consumers would love a silver bullet solution.”

Unilever discovered as much when its purchase of SlimFast in 2000 collided with the then-popular Atkins diet. Five years after paying $2.3bn, the consumer goods group took a €650m write down of goodwill.

Even Nestlé, with its mostly impeccable record on growth, has stumbled in the arena of weight loss. Last year the economic downturn took its toll on Jenny Craig, the Switzerland-based food group’s weight management business.


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