Atkins bites Weight Watchers
WEIGHT Watchers International claims that the Atkins low-carbohydrate diet sweeping America is taking a huge bite out of its earnings for this year and is slimming down its membership too.
Its line of branded diet food products and services has taken a big hit from what may be the biggest swing in US habits for a decade.
The craze for such diets has forced the food industry to rush out a new range of products catering to the low-carb craze.
Consumer goods giant Unilever blames the high-fat Atkins sensation for hitting sales of its SlimFast products.
Weight Watchers uses a low-calorie points system but does not forbid certain food. Low-carb diets, in contrast, often ban bread, potatoes and rice.
Despite an obesity epidemic gripping the US, Weight Watchers said attendance at its weight-loss centres was in decline thanks to the obsession with the new dietary regimes.
It said that while the Atkins diet itself had 'peaked', low and non-carb foods were a major problem for Weight Watchers. 'There's a mistaken belief that all you have to do is eat low-carb food to lose weight,' it said.
According to research firm NPD Group, about 17% of Americans say they have tried the Atkins diet.
Weight Watchers' stock price lost weight yesterday, dropping 9% to $34.97. It says earnings per share for this year are likely to be about $1.70 to $1.80, compared with analysts previous expectations of more than $1.90.
