Product details

The popularity of low carbohydrate diets has led to a decrease in the consumption of certain food categories like pasta and bread. Pasta makers in America saw sales decreasing by 7% in the first quarter of 2004. In America, while some companies like Dakota Growers and American Italian Pasta have taken steps towards creating low carbohydrate versions of their pasta brands, others are waiting for what they call a ''fad'' to pass out. This case profiles the pasta manufacturers'' dilemma as to whether to invest in product development or not, since it is hard to predict whether low carbohydrate products will be successful. It shows how the industry players are taking steps to educate consumers of the benefits of pasta and dispel the myth that it is detrimental to their dieting efforts. This case offers scope for discussion on the effects of trends in eating habits on food companies. It also provides scope for evaluating the effectiveness of different strategies adopted by firms in dealing with such large-scale changes. A structured assignment ''304-375-4'' is available to accompany this case.