Apr 18 2004
Atkin's Nutriotionals, the company that bears the name of the low-carbohydrate food plan is launching a campaign centered on education rather than its products.
Their new advertising campaign comes as a host of rivals, including those pushing spinoff diets like South Beach, seek to cash in on Americans' fight against obesity and topple Atkins from its market-leading position.
Analysts say Atkins' backers, investment bank Goldman Sachs and private equity firm Parthenon Capital, may want to get the company in shape for an early IPO and changing its image may be part of that process.
New York-based Atkins does not disclose its financial results, but said sales of its low-carb energy bars, cereals, baking mixes and other products doubled last year.
LowCarbiz estimates Atkins' retail sales at about $500 million to $750 million.
On Wednesday Atkins issued a statement warning about the "low-carbohydrate product frenzy." Because the U.S. Food and Drug Administration (news - web sites) has not yet defined "low-carb" for the consumer, the company said, the labels on many of these products are "meaningless from a scientific standpoint."
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