Proclaiming an end to the low-carb diet craze, U.S. weight loss companies are launching a marketing blitz aimed at winning over consumers resolved to shed flab once and for all in the New Year.
As the number of Americans following low-carbohydrate regimens like Atkins and South Beach continues to fall, stalwart diet companies such as Weight Watchers International Inc. and Jenny Craig Inc. are confident they can regain the upper hand in 2005.
Already, Weight Watchers shares have gained nearly 16 percent in the last 2 months, partly in anticipation of an improved outlook.
"We are seeing a nice resurgence," said Scott Parker, vice president of marketing for privately held Jenny Craig. "A lot of people have been let down by the promises of these other kinds of approaches."
The popularity of low-carb diets, which shun foods like bread and pasta in favor of proteins like meat and cheese, soared at the beginning of 2004 as an estimated 9.1 percent of Americans took up the regimens. Since then, however, the number of consumers on diets like Atkins fell to 3.6 percent in November, according to The NPD Group, a market research firm.
Sales growth of low-carb packaged foods have also slowed after big food makers scrambled earlier this year to roll out low-carb versions of everything from cookies to cereal.
At a Los Angeles supermarket earlier this week, General Mills Inc.'s low-carb Momentum bars, introduced mid-year, were marked as "reduced for quick sale." The company was not available for comment on the discounting.
The low-carb boom and ensuing media focus on the two-thirds of American adults who are overweight — including a reality TV show called "The Biggest Loser" in which contestants engage in a race to shed pounds — has made consumers more aware of the dangers of being fat, experts said.
But as the popularity of low-carb diets has died down, debates over healthy eating have raged on, and a trend toward more balanced eating is emerging.
"The reason people were interested in (low-carb) was that it worked for a period of time, but it's difficult to sustain," said Ken Harris, managing director at marketing consulting firm Cannondale Associates. "The key next year will be a sustainable diet regimen, and that's what people are vying for."
Both Jenny Craig and Weight Watchers will be touting the sustainability of their programs in advertising and new products early next year, though neither has been specific about membership projections.
Jenny Craig will promote its personalized "Your Style" approach in a television ad campaign featuring actress Kirstie Alley, who is trying to lose weight on the program. It will also run ads featuring consumers who have successfully lost weight with Jenny Craig, Parker said.
Weight Watchers, which recently began offering its clients a choice of two programs in an effort to expand its appeal, will also be promoting a new book, "Weight Loss for Life," which a spokeswoman said seeks to debunk the myths of dieting.
One of the myths in the book: "Calories don't matter — avoid fats or carbs to lose weight successfully," appears to take direct aim at low-carb diets.
Health club operator Bally Total Fitness Holding Corp. is also hoping one of its new TV ads, which features women in a salon discussing their failed dieting attempts, will strike a chord with disillusioned low-carb dieters, Chief Executive Paul Toback said in a telephone interview.
Chicago-based Bally is also partnering with Taco Bell, KFC, and Pizza Hut parent Yum Brands Inc. to offer free 4-week gym memberships to consumers looking to burn off 540-calorie helpings of Honey BBQ Wings or 370-calorie slices of Stuffed Crust pizza.
Atkins, which has been working to counter criticism that it is a fad diet, is also prepared with its own message of promoting long-term weight loss.
Atkins Nutritionals Inc., which is 80-percent owned by Goldman Sachs Group Inc. and private equity firm Parthenon Capital, said in a statement it is expecting "a surge in sales" in the beginning of 2005 and has a new ad campaign underscoring the high sugar content of rival packaged foods.
"The overwhelming message we would love people to take home is that the Atkins Nutritional Approach is a lifestyle to achieve permanent weight control," said Colette Heimowitz, the New York-based company's vice president of education and research.
"People need options. One size does not fit all, and that includes Atkins," she said. "Atkins is not for everybody."