Atkins diet slims Unilever
Has the SlimFast downturn taught Unilever that it must react to, rather than dictate, consumer behaviour? By Richard Irving


Unilever has provided proof of the slimming effects of the Atkins diet. The popularity of the low-carbohydrate regime was blamed for poor sales of the company's SlimFast weight-loss products last year.

While Atkins followers have been changing into smaller tops, SlimFast is switching its head. Unilever this morning announced that Marc Covent, the president of the unit, is to leave next month, although the Anglo-Dutch consumer products giant failed to clarify whether the departure was related to SlimFast's performance (or lack of it).

Unilever investors can only hope it was.

Mr Covent was a longstanding SlimFast employee, dating from before the business was bought by Unilever in 2000 and, as former vice-president of marketing for the unit, had undoubted expertise in the brand. What SlimFast was slow to realise, however, was that Atkins was not a fad but a cultural movement. Rather than ignoring it, SlimFast should have been exploiting it.

It is only right that investors who have suffered months of Unilever underperformance should be offered some sort of sacrifice in recognition of their patience.

Shareholders must also hope, however, that Slim.Fast's troubles are not symptomatic of a broader misunderstanding in the group.

For on an age when so many media compete for people's attention, when individuality is encouraged, companies such as Unilever must recognise that it can no longer dictate consumer buying habits through television ad campaigns.

The sector giants need to listen more and lecture less or risk missing the message and sales targets, and being forced to lose their heads.


http://business.timesonline.co.uk/a...1134257,00.html

Slimfast has recently been stocking the shelves with new low-carb stuff that is pretty much equivalent (at least in some respects) to the Atkins brand name counterparts and lower in price.

I suspect Unilever will do better the next quarter.

As I recall their old shakes had about 40 g of sugar on top of the protein and supplements that would have been a healthy alternative if there wasn't that sugar!

Amazingly, for an Anglo-Dutch company, these low carb products are only available in the US and apparently they have 'no plans' to sell them in the UK.

So, yes as a UK consumer, I would have to say that Slim.Fast's troubles ARE symptomatic of a broader misunderstanding in the group.

It's amazing how far low-carb has come. Now the companies' lack of initiative in the face of the low-carb movement is being talked about in similar terms to the VHS/BETA fiasco that is taught in every single marketing class around the world.

Amazing isn't it ?

Geesh... that's really short-sighted.... I didn't realize that the UK marketing was so different.

Although from what I've read in some of these news pieces LC is not very PC in the UK... there appears to be a hue and cry from the old stodgy medical practitioners in the UK who think that LC is ludicrous if not dangerous and this seems to lend more weight to marketers and product stocking in established buisnesses.

And yet, I know there are a lot of folks on this forum from the UK and all over the world who are strong advocates of LC. Hopefully in due time the world markets will wise up.

Ha - when I read this, I was thinking, "How? Did they sponsor a trial that didn't turn out in their favour?"



Whoa, I didn't know that. Look at the market they could have grabbed: it took a long time for Atkins products to make it 'cross the pond.

"You snooze, you lose," as they say.

I now take back what I said about these products not being sold in the UK - I originally received this information in an email from SlimFast when I enquired about the sale of low carb products in the UK - have come across this today (as part of a larger article) in the Sunday Times:



So, money has spoken, and they have changed their minds!

I wonder if we'll now get B&J's Low Carb Karma ice cream over here too - again had been told that they had no plan to sell it here