Stocking Atkins-friendly cuisine should only be a consideration for vendors in markets where Dr Atkins’ low-carb disciples are already plentiful, according to a new report from independent market analyst Datamonitor.
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In attempting to develop a contemporary shop offering to compete with traditional convenience stores, fast food outlets and even supermarkets, forecourt retailers have to react quickly to new market trends and developments in shop product lines. One such recent development is the stocking of low-carbohydrate products in response to the Atkins diet and other similar slimming regimes.
Tasty solution to world’s widening girth
Pushed into the limelight by Dr. Atkins and his best-selling book, low-carbohydrate diets have already gained momentum amongst the overweight populations of the UK and the US. The prevalence of obesity has increased by about 10% to 40% in the majority of European countries and Australia over the last ten years, whilst the US obesity problem is long-standing. Reflecting this, 50 million people, mainly in the US and the UK, have read Dr Atkins’ New Diet Revolution and approximately three million UK adults are currently following the diet, 10% of females and 7% of males.
Male forecourt shoppers welcome low-carb options
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By GlobalDataSlimming and weight control initiatives are generally adopted by females. For this reason, sales of low-calorie products have never fared particularly well amongst the male-dominated forecourt shop audience.
“However, to date, low-carbohydrate dieting has struck a chord with men in the US and the UK, mainly because it encourages the consumption of tasty, fatty foods including red meat, cheese, bacon and eggs,” said the report’s author, Anne Marie Davis.
In assessing obesity levels, a large difference between the sexes is apparent in many markets. “Russia is a prime example, with 15% of males and 28% of females clinically obese,” Davis said.
“Given the predominantly male nature of the forecourt shopper, this has implications when examining the potential demand for low-carb products through this retail channel. In weighting the obesity figures to more accurately reflect the forecourt target audience, it is the US, followed by Finland, Australia, UK and Germany, which are most affected and are therefore the most likely to demand diet products. To date the stocking of low-carbohydrate products has largely been down to consumer demand rather than instigated by the manufacturers,” she added.
French and Italians simply won’t buy it
The dietary culture within the market is also a consideration in thinking about the propensity of different markets towards low-carbohydrate dieting. It is no accident that the countries where the obesity problem is less prevalent, e.g. France and Italy, are also the territories that would culturally be more resistant to the trend for low-carbohydrate dieting due to their eating habits, Davis said. “Moreover, certain products forbidden on the Atkins diet are synonymous with particular European cultures. It would be very difficult to subtract bread and other bakery items from a French diet, for example.”
Manufacturers jump on low-carb bandwagon
Obviously the availability of low-carbohydrate products for the forecourt shop is a vital supply-side consideration in assessing the markets where they can and should be offered. Stimulated by the popularity of low-carbohydrate dieting, already there is an array of mainstream manufacturers, retailers and food service companies operating within the market. “In the UK low-carb Michelob Ultra was the best selling beer 4-pack for Tesco by the end of 2003,” said Davis.
“Meanwhile, Nestlé Rowntree is launching a low-carbohydrate version of its KitKat chocolate biscuits and Rolo chocolate toffees in the UK and Heinz is launching a low-carb version of its Weight Watchers-branded ready meals. Additionally, vulnerable to the fact that bread is discouraged on low-carb diets, British Bakeries through its Nimble brand now also offers Carbs So Low.”
Retailer response varied
UK retailers such as Marks and Spencer, Tesco and Asda have all responded differently to Atkins and the low-carbohydrate phenomenon. Some offer Atkins branded products, some are developing low-carbohydrate private labels, whilst others are modifying their packaging to emphasise low-carbohydrate ingredients. “Food service companies including Subway, Pret a Manger and Burger King have also taken action, primarily by offering bread-less versions of standard products,” Davis said.
Product availability doesn’t stop in the British Isles: as well as having sufficient distribution channels in the US and the UK, Atkins has set up manufacturing facilities in Germany, Switzerland and the Netherlands, whilst products are already available in Australia and Germany, Davis said.
“Key to successfully maximising returns from limited space in the forecourt shop is ensuring the right product ranges are being offered, aligned with changing demands on a country-by-country basis. Datamonitor’s preliminary assessment of the low-carbohydrate product phenomenon and the implications for the forecourt shop have revealed that territories displaying good potential for the sector’s development include Australia, Germany, Sweden, Finland, Belgium and the Netherlands,” Davis said.
“Ignoring low-carbohydrate food categories is not an option for any forecourt retailer in these markets. In fact, some are actually advised to launch low-carbohydrate products in their larger metropolitan stores within the next 12 months,” she added.
