Slim-Fast layoffs near Memphis
 

Slim-Fast is a disgracefully sugary product, but I'm sure sorry for the job loss in my area. I hope these folks can find work in a healthier industry.


commercialappeal.com - Memphis, TN
http://www.commercialappeal.com/mca...2723401,00.html

Tipton (County, TN) Slim-Fast plant cuts 116 jobs
By Linda A. Moore

March 12, 2004

Pressured by the growing competition in the weight loss industry, Slim-Fast Foods Co. will lay off nearly a third of its workforce in Covington today.

The 116 jobs account for 29 percent of the 400 employees who work at the manufacturing plant making Slim-Fast ready-to-drink beverages.

"The weight management category has been affected by competition and some big shifts in consumer behavior," said Katherine Beyer, public relations manager for Unilever, Slim-Fast's London-based parent company.

West Palm Beach, Fla.-based Slim-Fast's sales and profits have been declining, and company officials said the layoffs will improve efficiency and better align its resources.

The company notified the affected salaried and hourly workers late last week and is providing out-placement counseling and severance packages, Beyer said.

The layoffs are a tough hit for Covington, population 8,643, and Tipton County.

"It's going to have a major impact," said Beth Stiles, director of business service for the Tipton County Chamber of Commerce. "A lot of people are without jobs and with the economy the way it is now, there's not a lot of people hiring."

Tipton County has about 56,000 people, of whom about 25,000 are in the labor pool.

Other companies that have operations in Covington include Turner Dairies, Quebecor World, Charms, Delfield and Mueller Industries.

While the layoffs are a setback, the city will continue its efforts to attract more industry, said Covington Mayor Russell Bailey.

"We regret it, but . . . really, we've been fortunate. I think Covington and Tipton County has been fortunate in not experiencing some of the layoffs and reductions in workforce that have hit some other parts of the country."

Covington has had a tax abatement program for new industry for 10 years with incentives tied to the number of jobs created, Bailey said. The Covington Industrial Development Board also has land in industrial parks to the north and south of the city.

The layoffs at Slim-Fast are a result of the ever growing weight-loss industry and the rising popularity of low-carb diets.

"There clearly is a trend in the marketplace right now for low-carb foods," said Jeff Stein, an analyst with McDonald Investment Co. in Cleveland who follows the weight-loss industry. "Consequently, if you're not selling low-carb products, that has the potential of squeezing too many players out of the market."

Slim-Fast recently introduced a line of low-carb products. But competition is tough.

Weight loss products are a $40 billion industry, about 70 percent of it dominated by the self-help segment that includes products like Slim-Fast.

The remainder includes professional companies like publicly traded Weight Watchers International Inc. and privately held Jenny Craig Inc.

The industry, Stein said, is growing at a rate of about 5 to 7 percent a year.

The government is slated to begin a campaign highlighting the problem of obesity in America, Stein said.

- Linda A. Moore: 529-2702

Copyright 2004, commercialappeal.com - Memphis, TN. All Rights Reserved.

I also feel bad for the people out of work. Perhaps Slim fast is a little to late introducing low carb products.

My sister in-law was on Slim Fast for over a year and maybe (I do mean maybe) lost 20lbs. Since we have all started Atkins in Feb she has already dumped 17lbs !

Talk about a difference

SlimFast is owned by Unilver. I agree that the entire company is disgraceful for selling sugar-in-a-can.

Uniliver now has a line of low carb products in the stores called "Carb Solutions." Be very careful in reading the labels. I think some of these products are almost precisely the same as regular products with new labels.

As to the job loss, there is a collossal change underway--I hope--in the way people eat. That will cause dislocation. First to see the trend should be the retailers. Next, the Consumer Packaged Good (CPG) companies like Unilever. I hope that a segement of the health care and pharmaceutical industry is put out on the streets as people get healthier and don't need so many prescription drugs.

I used to love Slim Fast ready-to-drink shakes. I know there were many others much like myself who've gone from being serious Slim Fast followers to dropping them like hot potatoes. I would feel bad for the company if I didn't know how much better LC is for my health.

I do, however, empathize with the workers being laid off. I know what that's like and would never wish that on anyone.

I tried Slimfast for a short period of time. I mean SHORT ... couldn't stay on because I as starving an hour after drinking one of those cans-of-mostly-sugar.

I'm not sorry to see that product decline in the market, although I do feel for the people losing their jobs.

Just goes to show that the market will respond to the demand ... and more people are figuring out the low fat lie ...

Always hate to see a small local plant be closed. Now if they follow up with a announcement of new facilities offshore I will really be annoyed.

Travelocity moved its call centers to India-who the heck is going to be left to book a vacation-maybe we all need work visa's for New Deli

Carb Options actually.


I LOVE the Asian Teriyaki Marinade - in fact I'm cooking up some chicken Teriyaki with it right now.

the label claims its made with splenda and has less than 1 gram carb per tblspoon.

I use about 2 Tblspoons of it with a dozen or so Chicken tenders.