Business 2.0's published a long feature on the big biz that Atkins diet has become.
Company executives say they were already pushing to get everything from bread to candy on shelves, but the Times story prompted them to hit the gas on product development. During 2002 an explosion of new foods appeared. In total the company has created 95 products, from waffle mix to its own version of ketchup, in the past few years; it still hasn't conquered some, such as pasta, which has gumminess problems. The Atkins label is sold in such chains as Wal-Mart (WMT), Target (TGT), and GNC, but has yet to really penetrate convenience stores and the big shopping clubs like Costco (COST).
From the start, Wiant tried to make everything from packaging to product categories reinforce Atkins's new message: This is not diet food. He moved products into "sub-brands" like Endulge and Morning Start, because the Atkins name alone is too diet-oriented. The red "A" on stark white packaging was replaced by the sleek purple of the candy line and the energized yellow of the breakfast bars. "We're basically going to our consumers and saying, 'What do you need the most?'" Wiant says…
Questions about Atkins's medical reputation have never seemed to resonate with the millions of people who've tried his diet (the problems haven't been widely reported). The roaring buzz of recent good press also has helped drown out the doubt. But that doesn't mean Atkins Nutritionals is invulnerable. Despite its message that the diet is safe and effective, the science is far from settled, and many Atkins critics are determined to prove him wrong. Just as headlines can catapult a company to new success, they can also punish. Reports of a powerful negative study — something like, say, "Atkins Causes Heart Disease After All!" — could kill the company's momentum.
