The Carb-Counting Continues

Apr 15, 2004
George Anderson

By George Anderson

Even those not following Atkins or the South Beach diet are limiting their intake of carbs, says a newstudy.

Morgan Stanley surveyed 2,500 adults and conducted focus groups to determine the impact of low-carb dieting on the food industry.

The study suggested consumers’ interest in the benefits of following a low-carb diet may negatively impact the sales of products such as candy and soda over the longer term.

William Pecoriello, Morgan Stanley’s beverage analyst, expects both regular and carbonated soft drinks will lose share to water as consumers lose their taste for sweet drinks.
He does not see the mid-calorie and reduced-carb sodas being introduced to have an appreciable impact on consumer purchasing.

Moderator’s Comment: What are the implications of Morgan Stanley’s consumer survey findings for food manufacturers,
retailers and restaurants?

A close friend of ours has told us some fast food operators were not all that interested in selling chocolate or other milk in the past because it didn’t
carry nearly as much profit as selling soft drinks from the fountain. We wonder if that will change?
Anderson – Moderator

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