Thursday, February 02, 2006

Kraft's Earnings Bolstered By Low-Carb Line

The marriage between Kraft and South Beach Diet magical so far

Well, well, well, stop the presses everyone!

This Brand Week story about the fourth quarter earnings for one of America's major food manufacturer shows a surprising brand leader emerging for the company to make them profitable heading into 2006.

Kraft Foods, which successfully launched a line of South Beach Diet food products to the market in 2005, announced their fourth quarter earnings on Thursday and said the new South Beach Diet portfolio was the "primary growth driver."

DID YOU HEAR THAT, MEDIA?!?!?! An explicitly LOW-CARB line of food products helped an major American food company earn a profit in 2005. I guess this economic analyst was wrong in his assessment of the viability of low-carb products for businesses.

After just 10 months on the market, the South Beach Diet line of products had garnered an eye-popping $170 MILLION in sales!

I like how the story describes this news:

"...much to the chagrin of industry naysayers who predicted an early death for the line of products that while not as extreme as the Atkins Diet, still relies on carb-control for its efficacy."

WAH WAH WAH! Those "industry naysayers" can just go suck on an egg because Kraft invested in something that they knew had marketability and widespread consumer appeal and it's paying off. GOOD FOR THEM!

Overall, Kraft's net revenues were up by 10 percent over the previous year's fourth quarter and rose by $34.1 billion, or 6 percent, for the entire year.

Low-carbers should celebrate the huge success of the South Beach Diet line and see it as the beginning of a resurgence in genuine, quality low-carb products. While NONE of us wants to see the onslaught of those garbage fake "low-carb" products that came out a couple of years ago, excellent products for people who are livin' la vida low-carb are always welcomed.

Kraft put their neck out on this one and now it's paying off -- BIG TIME!

Which company is gonna have the guts to back a truly low-carb product line next? We'll be watching.


Blogger Newbirth said...

I'm still on my LIFESTYLE. It's been almost 2 years now. :)

One of the biggest downfalls of dieting is feeling deprived of favorite foods. According to the survey, dieters (39.4 percent) are least likely to sacrifice sweets and desserts in their new diets, followed by carbohydrates (22 percent) and pizza (21 percent). Luckily, The South Beach Diet encourages followers to eat the right carbs and right fats and enjoy a variety of foods.

But if you sacrifice them long enough, you stop wanting them nearly as much. :)

2/03/2006 9:26 PM  
Blogger Newbirth said...

That last comment went with the post above it. Whoops. :)

I do like the Kraft and South Beach thing. It's helped me find some Atkins-friendly stuff, though I do have to read packages because SB allows more carbs than I'm allowed on Atkins. I use the Kraft/SB salad dressing almost every day.

2/05/2006 7:58 PM  

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