Insight: Profit Bonanza Eludes Companies Chasing Obesity Business

Dieting Makes You Fat

In a global economic downturn, modestly effective weight-loss drugs and special diet foods are turning out to be a tough sell when a cheaper alternative is to eat less – or do nothing. The first new prescription diet drugs to hit the U.S. market in more than a decade, from Vivus and Arena Pharmaceuticals, have registered disappointing sales and food companies’ diet lines are struggling. Switzerland’s Nestle has all but given up on the diet business, agreeing to sell the bulk of its Jenny Craig weight-loss unit last week to U.S. private equity firm North Castle Partners. And as Unilever reviews its portfolio of underperforming food assets, analysts say its Slim-Fast brand is one that could come up for sale.
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An overweight woman sits on a chair in Times Square in New York, May 8, 2012. REUTERS/Lucas Jackson

Clearly, our garcinia cambogia extract appetite for losing weight is not matched by our capacity to actually shed fat. Why did we not take Cannon’s advice the first time round? “When people are skeptical of dieting regimes, they will say that diets don’t work,” he explains. “But they always stop short of saying that dieting makes you fat, which is a concept with explosive implications.” He points to scientific studies that illustrate how the dieting trap leads to weight gain. A 2007 UCLA review concluded: “We found that the majority of people regained all the weight, plus more.
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