The Low-carb Trend: Death Knell for American Pasta Companies?
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Code : BSM0010
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Region : USA
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The Low-Carb Craze At any given point of time, 25%ofAmericans are on a diet. Research studies show that in 2004, 35 million Americans, roughly 12%of the population, are on one of the formal low-carb diets,which have stringent restrictions onwhat dieters can eat and what they can't. Another 23% are on a carb-controlled diet, in which they try to cut down on their carb intake while eating a normal diet. Totally, 35% of American adults are cutting down their intake of carbohydrates by reducing their consumption of food items like bread, pasta, potatoes and orange juice... Impact on Pasta Makers AC Neilsen reports that in the first financial quarter of 2004, consumption of dry pasta across America fell by 7%. Established brand names likeNewWorld Pasta Co.'s Prince, Ronzoni and SanGiorgio sawa greater dip in sales than local or private retailer brands.The reactions ofAmerican pastamakers to the low-carb trend differed fromcompany to company. Citing debt, accounting problems and the low-carb craze, NewWorld Pasta Co., based in Harrisburg, Pennsylvania and one of the biggest pastamakers of the world, filed for Chapter 11 bankruptcy protection onMay 10th 2004... Gearing Up for an Uncertain Future Companies like American Italian Pasta believe that in addition to creating high-quality low-carb line of products, consumers need to be educated about good carbs and bad carbs, with the help of nutrition and dietary research. They point out that good carbs are those that are absorbedmore slowly and are found inwhole grain foods like pasta. Bad carbs found in processed foods cause sharp fluctuations in body sugar levels. Pastamakers and food researchers feel the need to dispel themyth that pasta is bad for dieters... |
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