USA: Weight Watchers: booming revenues (COMMENT)
US baby boomers are now a significant proportion of the dieting population. Diet service companies are responding by increasingly trying to attract this lucrative consumer segment. The development of new products directly marketed to these boomers - from these companies and traditional CPG manufacturers - will significantly drive the health category product and service industries.
Weight Watchers International has posted full-year revenues of US$809.6m for 2002, up from $623.9m in 2001, a rise of 30%. Fourth quarter revenues came in at $190.1m, compared to $145.5m in the same period a year earlier, with net income in Q4 rising to $28.4m from $19.2m, excluding unusual items.
Weight Watchers is one among a number of major diet industry players that have announced strong revenue and income growth for 2002. Behind the numbers, the growth in revenues is being driven by a growth in membership - between 1997 and 2002, attendance at Weight Watcher meetings more than doubled, surging from 23 million to 55 million.
A sizable proportion of the attendees are baby boomers confronting a battle of the bulge. As they move into their forties and fifties, metabolisms are slowing down, lifestyles becoming more sedentary and waistlines spreading. And as their weight rises, so does the associated risk of health problems.
More health conscious and more proactive in managing their weight than previous generations, the boomers are increasingly searching for new ways to regain control of their weight.
Slim-Fast Foods, which reports that 40% of its customers are baby boomers, is meeting this desire by utilising consumer education about obesity's health risks - a strategy designed to cater to the health conscious generation's zeal for information.
Keeping marketing messages clear and informative will remain key to attracting the baby boomers. While they do not like being reminded of their age, they are nevertheless experiencing real physical changes that directly affect their food and drink consumption. Consumer packaged goods manufacturers that show understanding, concern and a solution will receive tangible rewards and growth of their own, via new product sales and deepened brand loyalty.
(c) 2003 Datamonitor. All rights reserved. Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon.
The food industry in the United States has been struggling with accusations that it is responsible for the country's "obesity epidemic" but companies are now developing strategies to deal with the pro...
As McDonald's and Wendy's introduce healthier options amid rising obesity levels and a general interest in healthier foods, some fastfood companies have been going in the opposite direction, introduci...
Artificial sweetener Splenda has enjoyed phenomenal success in recent years, and now has a 51% share of the US market. But now it has a fight on its hands, as sugar manufacturers file lawsuits claimin...
The UK food industry has announced its commitment to include on-pack Guideline Daily Amounts (GDAs) on up to eight nutrients, including calories, fat, saturated fat, carbohydrates, protein and sugars,...
Most adults blame the parents for America's child obesity problem, according to a report by market analysts Mintel....
The Australian government has launched an initiative to provide comprehensive national measures of what and how much Australian eat, and their levels of physical activity....
The USDA's Agricultural Research Service has unveiled Calorie-Trim, an all-natural, super-carb product he created to promote better consumer health....
Canadian health minister Ujjal Dosanjh and minister of state (public health) Dr Carolyn Bennett have recognized the need to take action to address the significant public health threat caused by obesi...
- The key questions for digital strategists in 2017
- Unilever 2016 investor day - the top takeaways
- Wessanen's move for Spain's Biogran - analysis
- Whole Foods, Aldi, M&S - retail round-up, Nov 2016
- Burger King, Jollibee: foodservice focus, Nov 2016
- General Mills jobs to go in business revamp
- Verlinvest, China Resources invest in Oatly
- Hain Celestial appoints Nestle executive as US COO
- Tyson sets up US$150m investment fund
- B&G acquires pasta sauce group Victoria Fine Foods
- Confectionery North America (NAFTA) Industry Guide_2016
- How Brands Are Making Our Food Healthier
- Processed Snacks (Savory Snacks) Market in the United States - Outlook to 2020: Market Size, Growth and Forecast Analytics
- Global Dried Processed Food Market 2016-2020
- Frozen Food Production in the US - Industry Market Research Report