Despite the reported problems of Atkins Nutritionals UK, the market for low carbohydrate foods remains strong, according to Retail Brands, license owner of low carbohydrate confectionary brand Carbolite in the UK.
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“The market hasn’t developed in the same way as in the US,” Rob Ellert, chairman of Retail Brands, told just-food. “It has been a lot smaller, but it is still a reasonably chunky size,” he said.
The size of the market for low-carbohydrate foods is hard to quantify, but he put the UK market for substitute products at around £25m (US$48m) to £30m. “That’s just the replacement market,” he said. “It’s not where it was in the States.”
His company was just about hitting its budget targets for sales, he said. “Our brand is continuing to sell well.” UK consumers were more cautious than their US counterparts he felt, while retailers had been slow to realise the potential of low-carb products.
When they had decided to act, UK retailers had been wrong to enter the low-carb diet with own label products, he felt. “It’s probably not the way to do it,” he said. “All the slimming products are brands.”
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By GlobalDataThe Atkins craze had helped to make UK consumers think about carbohydrates, he said. Around two to four million UK consumers were carb-conscious. “That’s not the same as saying they’re on a low-carb diet,” he said. “Even if people aren’t on Atkins, they’re aware that they’re eating more carbs than they need to.”
The substitute market did have a problem with the quality of some of the products on offer. “The biggest problem is that there are a lot of products out there that don’t deliver the taste profile they should,” he said. “These things have affected the market.”
He remained confident. “I’m not going to be a £100 million brand,” he said. “But we are a big player in a niche market. The market is still there and will remain there.”
