An Era Ends – Atkins Nutritionals Files For Bankruptcy

[CattleCo]

Well, it was a good ride for awhile.....another nail in the Beef Demand Coffin! But, I am sure the border opening will get the blame for those 60 dollar fats we will have in the future..........Does anyone see the similarity between the Beef Cattle Industry and the Auto Industry? Poor Management, Recalls,Arogrance, we cannot be brought down.....etc!!!!
Peck and Ishamel will have a ot of good stories to write this fall and next year.....I can hardly wait. BEEF Magazine RULES!!! :wink:



Jolley: An Era Ends – Atkins Nutritionals Files For Bankruptcy



Acknowledging that one of the hottest dietary fads in history has finally run its course, Atkins Nutritionals Inc., the company that helped the red meat business to unprecedented sales growth and profitability, filed for chapter 11 protection Sunday. A long list of new low carb products, backed with large ad budgets by major food businesses like Kraft and ConAgra, also cut into Atkins' sales and market share. Richard Rothstein, a company spokesman, said a pre-arranged hearing is scheduled for today in Bankruptcy Court.



The filing will be cheered, of course, by a baking industry that took a major sales dive as the Atkins diet grew in popularity. Those of us in the meat business, though, should take a moment to give thanks to the good Doctor Atkins, who died from a fall several years ago, and mourn the passing of the fad.



The privately-held company had already reached an agreement with many of its lenders to trade equity for lowered debt (Editor's note: a deal that smacks of trading in junk bonds and cutting your losses early).



According to President and CEO Mark S. Rodriguez, the company has "adjusted our organization to accommodate a smaller business."



After bankruptcy, the company will "focus on its nutrition bars and shakes," Rodriguez said (Editor's note: meaning Atkins will become a decidedly smaller company).

 

[Anonymous]

Cattleco-- I'm not sure this is an indication of that many less following the diet or rather that many less buying their high priced product...Being a diabetic, I try to follow a low carb diet- and tried many of the new low carb Atkins products that were introduced-- but with the Atkins craze I found that many companies began producing the same products at about 1/2 the price- and many more other new products.......Why buy the expensive Atkins name....

 

[Faster horses]

OT, I am sorry to have to be the one to point this out, but your post just spoke the reason why COOL won't work here.

If you can get something " for 1/2 the price, why buy the expensive name?"

You said it, but that is why consumers won't PAY more for one over the other; of most anything.

 

[Bill]

OT, I am sorry to have to be the one to point this out, but your post just spoke the reason why COOL won't work here.

If you can get something " for 1/2 the price, why buy the expensive name?"

You said it, but that is why consumers won't PAY more for one over the other; of most anything.

:lol: :lol: FH, you are absolutely, 100%, right on with your comment.

 

[Maple Leaf Angus]

You could argue that Atkins Nutritionals was a victim of its own success.





Their margins got too thin. :wink:

 

[Tam]

OT, I am sorry to have to be the one to point this out, but your post just spoke the reason why COOL won't work here.

If you can get something " for 1/2 the price, why buy the expensive name?"

You said it, but that is why consumers won't PAY more for one over the other; of most anything.

Ouch another argument for M'COOL shot to H**l Oldtimer and by your own hand. :wink:

 

[agman]

Well, it was a good ride for awhile.....another nail in the Beef Demand Coffin! But, I am sure the border opening will get the blame for those 60 dollar fats we will have in the future..........Does anyone see the similarity between the Beef Cattle Industry and the Auto Industry? Poor Management, Recalls,Arogrance, we cannot be brought down.....etc!!!!
Peck and Ishamel will have a ot of good stories to write this fall and next year.....I can hardly wait. BEEF Magazine RULES!!! :wink:



Jolley: An Era Ends – Atkins Nutritionals Files For Bankruptcy



Acknowledging that one of the hottest dietary fads in history has finally run its course, Atkins Nutritionals Inc., the company that helped the red meat business to unprecedented sales growth and profitability, filed for chapter 11 protection Sunday. A long list of new low carb products, backed with large ad budgets by major food businesses like Kraft and ConAgra, also cut into Atkins' sales and market share. Richard Rothstein, a company spokesman, said a pre-arranged hearing is scheduled for today in Bankruptcy Court.



The filing will be cheered, of course, by a baking industry that took a major sales dive as the Atkins diet grew in popularity. Those of us in the meat business, though, should take a moment to give thanks to the good Doctor Atkins, who died from a fall several years ago, and mourn the passing of the fad.



The privately-held company had already reached an agreement with many of its lenders to trade equity for lowered debt (Editor's note: a deal that smacks of trading in junk bonds and cutting your losses early).



According to President and CEO Mark S. Rodriguez, the company has "adjusted our organization to accommodate a smaller business."



After bankruptcy, the company will "focus on its nutrition bars and shakes," Rodriguez said (Editor's note: meaning Atkins will become a decidedly smaller company).

The mere fact that the high protein diet craze has peaked does not equate to or support your proclamation of $60.00 fed cattle prices. While beef demand has slowed temporarily it remains approximately 25% above the low level attained in 1998. Some modest retrenchment must be expected especially given the drag on discretionary income caused by high energy prices.

Income growth is now accelerating to the point that those gains will soon outstrip the cost of higher energy. As such beef demand should begin to stabilize later this year.

Also overlooked is the historical fact that approximately every twenty-five years our beef industry sees prices establish a new and higher price plateau. We have all just witnessed such a shift. As such, fed cattle prices will spend little if any time below $70. I believe the new price range, based on historical price analysis since 1920, will be $73-$92. Any price movement outside of that range will prove to be very short lived. The recent price decline in fed cattle prices from $94 to $78 was a quite normal price correction from the winter/spring high to the summer/fall low.

Your comments regarding commodity prices are consistently alarmist in nature which is a clear signal that you have very little understanding of many forces that determine the price of said commodity, be it cattle or grain. The alarmist comments you make do a disservice to everyone in agriculture.

 

[Anonymous]

OT, I am sorry to have to be the one to point this out, but your post just spoke the reason why COOL won't work here.

If you can get something " for 1/2 the price, why buy the expensive name?"

You said it, but that is why consumers won't PAY more for one over the other; of most anything.

Not so FH- -All were made in the US-- in fact my low carb- no sugar syrup, jam, bread, and barbeque sauce are all labeled made in New Jersey- but they are all sold in a local general outlet store- unlike Atkins products that are more expensive because of the Atkins name and that I have to go to a Billings (or other major city 300 miles away) specialty store, or order thru the parcel post with a huge shipping charge to obtain.... Much the same as if I want to buy US verified branded beef- in order to get it up here you need to special order it freighted in by refrigerated Air Express.....

Just like Taylor Brown said the other day on the radio- when the origin idendtified product is offered to them, they will buy it- no matter if its mandatory or not- people are awakening to the fraud being perpetrated to them by the beef industry and the cattlemen that call themselves that under the NCBA name .......... Would you buy a generic horse from someone that won't tell you its history, pedigree, or where it came from :???:

 

[CattleCo]

"Also overlooked is the historical fact that approximately every twenty-five years our beef industry sees prices establish a new and higher price plateau. We have all just witnessed such a shift. As such, fed cattle prices will spend little if any time below $70. I believe the new price range, based on historical price analysis since 1920, will be $73-$92. Any price movement outside of that range will prove to be very short lived. The recent price decline in fed cattle prices from $94 to $78 was a quite normal price correction from the winter/spring high to the summer/fall low.

Your comments regarding commodity prices are consistently alarmist in nature which is a clear signal that you have very little understanding of many forces that determine the price of said commodity, be it cattle or grain. The alarmist comments you make do a disservice to everyone in agriculture."

Agman.....read my lips...."10 Cent Hogs in 1997 or 1998!!!!!! I will speak the truth and give my predictions. You ole boy have very little understanding of REALITY!!!!!!!!!!!!! I would assume you are not very old and do not remember the Ag Crises of the 1980's or read about the Great Depression in the 30's. I will be 60 this year and I have worked my butt of to keep the farm together through the tuff times. You do not have a clue! :roll:

 

[agman]

"Also overlooked is the historical fact that approximately every twenty-five years our beef industry sees prices establish a new and higher price plateau. We have all just witnessed such a shift. As such, fed cattle prices will spend little if any time below $70. I believe the new price range, based on historical price analysis since 1920, will be $73-$92. Any price movement outside of that range will prove to be very short lived. The recent price decline in fed cattle prices from $94 to $78 was a quite normal price correction from the winter/spring high to the summer/fall low.

Your comments regarding commodity prices are consistently alarmist in nature which is a clear signal that you have very little understanding of many forces that determine the price of said commodity, be it cattle or grain. The alarmist comments you make do a disservice to everyone in agriculture."

Agman.....read my lips...."10 Cent Hogs in 1997 or 1998!!!!!! I will speak the truth and give my predictions. You ole boy have very little understanding of REALITY!!!!!!!!!!!!! I would assume you are not very old and do not remember the Ag Crises of the 1980's or read about the Great Depression in the 30's. I will be 60 this year and I have worked my butt of to keep the farm together through the tuff times. You do not have a clue! :roll:

You have three years on me and I can assure you that you would not even get to first base against me in researching and understanding the forces that contribute to changing prices. You forgot to mention the severe drought in the mid-50's and the Price Freeze in 1973.

I will stand by my statement. Your comments are mostly alarmist and do a disservice to the ag sector.

 

[RobertMac]

OT, I am sorry to have to be the one to point this out, but your post just spoke the reason why COOL won't work here.

If you can get something " for 1/2 the price, why buy the expensive name?"

You said it, but that is why consumers won't PAY more for one over the other; of most anything.

FH, you couldn't be more wrong. MCOOL would differentiate beef products. If Canadian beef is as good as the Canadians say and, as SH says, it becomes the "in" product, then Canadian beef would sell at a premium. Using your reasoning, consumers would then switch to buying USA beef...lower price for same thing...supply/demand!!!! So if Canadians had any sense and any control over their product, they would be pushing for MCOOL to label their product and gain that premium. But then they would have to blame R-CALF for getting them higher prices.

 

[CattleCo]

You have three years on me and I can assure you that you would not even get to first base against me in researching and understanding the forces that contribute to changing prices. You forgot to mention the severe drought in the mid-50's and the Price Freeze in 1973.


Agman,
You could not carry my jock strap let alone have been through in life what I have! Iwill continue to make my predictions.....let me quote what one of the most respected livestock people said about my "REALITY VISION" the other day.....Short term "yours truly" may be a little off the wall at times....in the 40 + years I have know him he NEVER MISSES LONG TERM!!
Have a NICE DAY !
If you have a MBA you really do not have a clue! :roll:

 

[PORKER]

Their is always a reason for one's actions and comments.

 

[RobertMac]

CattleCo, is the beef industry so frail that the bankruptcy of Atkins Nutritionals Inc. will doom us? All Atkins did was get the message out that beef is good for you and fat doesn't cause you to get fat. What amazes me is that Atkins was able to do what all our check-off dollars failed to do!

 

[mrj]

CattleCo, is the beef industry so frail that the bankruptcy of Atkins Nutritionals Inc. will doom us? All Atkins did was get the message out that beef is good for you and fat doesn't cause you to get fat.

[ What amazes me is that Atkins was able to do what all our check-off dollars failed to do!

RM, what is so surprising about that?

An individual can write whatever they want in a book and do not have to do the research to prove their claims.

The Beef Checkoff cannot. Research is ongoing to show the benefits of the fat components in beef and work is being done to position beef as having naturally occuring, beneficial fats.

It takes time. And there have been those working against the beef industry, which makes it more difficult and time consuming to prove our point that beef is healthful.

MRJ

 

[CattleCo]

CattleCo, is the beef industry so frail that the bankruptcy of Atkins Nutritionals Inc. will doom us? All Atkins did was get the message out that beef is good for you and fat doesn't cause you to get fat.

[ What amazes me is that Atkins was able to do what all our check-off dollars failed to do!


I never said the Atkins demise would doom the Beef Industry.....but it did a helluva job in getting people to eat a LOT of BEEF! DO you really think Beef demand would have grown with out the "diet deal"? As for the Check Off...... good response ! Cattle Feeders are whinning about 100 @ head losses now they are prediciting $200 @ head losses down the road. Their is a very simple solution to this.....do pay so damm much for the feeders!!! :roll:

 

[RobertMac]

CattleCo, is the beef industry so frail that the bankruptcy of Atkins Nutritionals Inc. will doom us? All Atkins did was get the message out that beef is good for you and fat doesn't cause you to get fat.

[ What amazes me is that Atkins was able to do what all our check-off dollars failed to do!

RM, what is so surprising about that?

An individual can write whatever they want in a book and do not have to do the research to prove their claims.

The Beef Checkoff cannot. Research is ongoing to show the benefits of the fat components in beef and work is being done to position beef as having naturally occuring, beneficial fats.

It takes time. And there have been those working against the beef industry, which makes it more difficult and time consuming to prove our point that beef is healthful.

MRJ

Convenient excuse...research has been done...check with the University of Maryland, Dr. Mary Enig.

Question is...why hasn't this been looked into sooner? It takes someone outside the beef industry to bring the truth out!!!!

 

[RobertMac]

CattleCo, is the beef industry so frail that the bankruptcy of Atkins Nutritionals Inc. will doom us? All Atkins did was get the message out that beef is good for you and fat doesn't cause you to get fat.

[ What amazes me is that Atkins was able to do what all our check-off dollars failed to do!


I never said the Atkins demise would doom the Beef Industry.....but it did a helluva job in getting people to eat a LOT of BEEF! DO you really think Beef demand would have grown with out the "diet deal"? As for the Check Off...... good response ! Cattle Feeders are whinning about 100 @ head losses now they are prediciting $200 @ head losses down the road. Their is a very simple solution to this.....do pay so damm much for the feeders!!! :roll:

I got a better solution...get behind things like Atkins with our checkoff dollars and increase demand..then producers won't have to lose income so feeders can make money and feeders won't have to lose income so packers can make money. The message should be that beef is an essential food for good health!

 

[agman]

CattleCo, is the beef industry so frail that the bankruptcy of Atkins Nutritionals Inc. will doom us? All Atkins did was get the message out that beef is good for you and fat doesn't cause you to get fat.

[ What amazes me is that Atkins was able to do what all our check-off dollars failed to do!


I never said the Atkins demise would doom the Beef Industry.....but it did a helluva job in getting people to eat a LOT of BEEF! DO you really think Beef demand would have grown with out the "diet deal"? As for the Check Off...... good response ! Cattle Feeders are whinning about 100 @ head losses now they are prediciting $200 @ head losses down the road. Their is a very simple solution to this.....do pay so damm much for the feeders!!! :roll:

I got a better solution...get behind things like Atkins with our checkoff dollars and increase demand..then producers won't have to lose income so feeders can make money and feeders won't have to lose income so packers can make money. The message should be that beef is an essential food for good health!

RM, that has and remains the message from the Beef Checkoff and the NCBA. I have not seen them deviate from that message that "beef is good for your health." Have a cool one.

 

[CattleCo]

Agman,
I will go along with you on this one! I can tell you a deal that happened in 1987 that would make you boil !!The NCBA and their Ad Agency really stepped on their penis and jumped up and down !!! Feel free to call me some evening. This deal will make you sick and really ,really doubt the NCBA's ability to sharpen a pencil correctly, let alone represent the cattle industry!! Have a good one!