Low Carb Market SlowingIn More Ways Than One

Low Carb Market SlowingIn More Ways Than One
byJennifer Schraag

Ina Dec. 5, 2004, New York Times articletitledIs the Low Carb Boom Over?writer Melanie Warner highlighted severalcompanies who, like millions of others, jumped on the low carb bandwagon as itsped through every mass media outlet, restaurant menu and home meal planneraround the globe.Warners story goes on to shed light on how the ensuingmonster carbohydrate aftermath has left many companies stumbling with slimmedstock prices and bottom lines lower than any they had cared to ever see.

In addition to the Times article,the first two weeks of December 2004 found Motley Fool,Columbia Tribune andcountless other newspapers, business journals and online news sites featuringreports about the staggering stock prices of such companies as American ItalianPasta Company, MGP Ingredients Inc. and Atkins Nutritionals. Manufacturers themselves arent sugar coating the situation,either. According to a Reuters Business Insight survey, the low carbcraze will slide to number two in food and drink manufacturing, while low fatand cholesterol-reducing products are expected to take over.The report, titledNew Profit Opportunities in Health and Nutrition to 2009, surveyed 1,250food and drink industry executives from around the globe in 2004 and found 45percent of those surveyed agreed low carb will now be overshadowed.

In early 2004, the demand for low carb formulations andingredients reached an all-time high, said Linda Douglas, Ph.D. RD,scientific affairs manager for Golden, Colo.-based GTC Nutrition. GTC Nutritionprovides several low carb ingredients including NutraFlora®, a short-chainfructooligosaccharide (scFOS) used for the addition of meaningful amounts offiber without adding metabolizable carbohydrate. Yet, as the year progressed,many consumers grew wary of the diets food and beverage restrictionsalongwith the productsdue to flavor and texture issues. As a result, the low carbfocus started to lose its momentum. Still, suppliers and manufacturers alikeexperienced an overall increase in demand for low carb ingredients andformulations. Despite the fact that the trend was changing, the demand forhealthier foodsbe they low carb, reduced carb or low calorieremainedstrong.

Perhaps the low carb towel should not yet be hung. ACNielsenLabelTrends reported that sales of low carb labeled products are still growing,yet have simply slowed. The report reads sales rose 6.1 percent for the 13 weeksended Sept. 25, 2004, compared with a 122 percent increase in the 13 weeks thatended March 27, 2004.

The demand for healthier ingredients and formulations iscertain to continue as consumers will always be seeking healthier food andbeverage options. Douglas pointed out the market may not focus as strongly onlow carb in 2005, but the modified carbohydrate message will remainleaving consumers with products which are likely to be positioned differently.The changes will reflect the growing knowledge of glycemic index leading to aright carb or slow carb concept, she said.

Jocelyn Mathern, RD, technical specialist with Giessen,Netherlandsbased Acatris Inc. agreed with Douglas. Consumers have definitelybecome more interested in carbohydrates over the past year, but just like afterthe low fat craze when we learned that some fats are better than others, somecarbs also are better than others, Mathern said. Acatris foresees that thenext phase in the low carb trend is really going to be more of a focus onhealthier carbs, or slow carbs. Slow carbs are those that are absorbedmore slowly and produce less of a spike in blood sugar after a meal. Health careprofessionals and consumers know that we need some carbohydrates in our diet,the key is to understanding which types of carbs are beneficial. Acatrishealth ingredient FenuLife® is a standardized source of fenugreekgalactomannan, a soluble fiber that can balance sugar absorption in the gut andhelp improve glycemic response to mealsbasically acting as what todaysindustry calls a slow carb.When consumed, the galactomannan forms aviscous gel in the stomach and the intestinal tract that slows absorption ofsugar into the blood stream. This can help individuals avoid high peaks in bloodsugar levels after a carbohydrate-containing meal.

Dieters and diabetics have much in common when partaking inthe low carb world. Both are looking to use diet as a form of controlbe itfor weight or for controlling insulin levelslow carb for these consumerscould remain a high demand. Countless clinical studies suggest dietary glycemicindex (GI) plays a role in bodyweight regulation and diabetes risk. GI is ameasure of a foods power to raise blood glucose concentration after a meal.1In other words, the term GI describes how a food, meal or diet affects bloodsugar during the postprandial period. According to one study conducted atChildrens Hospital in Boston, mice fed a high GI diet had almost twice thebody fat of those on the low-GI diet after nine weeks leaving the scientiststo conclude GI as an independent factor can cause obesity and increase risks of diabetes and heart disease inanimals.2

This leaves manufacturers playing the control task role andtrying to replace conventional carbohydrates will the healthier, lower GI-ladenones.

Manufacturers typically choose to increase the protein contentof formulas or to replace the existing carbohydrates with lower-impact carbssuch as fibers and sugar alcohols, according to Douglas. Whey proteins, milkproteins and soy proteins are largely used, as they provide texture to manyapplications and can be use to replace part or 100 percent or the carbohydrates.Other ingredients commonly used to replace carbohydrates are polyols (sugaralcohols) and fibers, which are still carbohydrates, but have a lower impact onglycemic response and are metabolized differently by the body. Often times whensugars are removed, manufacturers also opt to use high-intensity sweeteners tokeep the sweetness of the product similar to products with normal levels ofcarbohydrates.

Orem, Utah-based Xlear Inc.s xylitol, an all-naturalsweetener commonly found in birch wood, fruits and vegetables, is a goodexample. Xylitol is a sugar substitute used in many of todayspopular diets because it has many of the benefits of sugar, yet contains 40percent fewer calories, does not count toward net carbs and has a low GI whichmeans it creates very little insulin response.

Ingredients have to be made to mimic the functionalitywhile delivering a healthier nutritional profile, Douglas added. No matterwhat ingredient is being used, the challenge is to find a replacement that candeliver the same texture and flavor profile as a conventional carbohydrate.

So, from one day to the next, if the reports read low carb iswaning or the fad will linger on, manufacturers still may be able to find theirniche in the industry. Perhaps Paul Gannon, chief marketing officer withsupermarket giant Albertsons, may have said it best in his quoted reply in the Timesstory: I think there is a small percentage thatwill survive, and the rest will go away, he said.

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