Keto, one of the largest manufacturer's of low carb foods, has gone under. At one point, they were worth 300 to 400 million, and then everything fell apart. They defaulted on loans and weren't able to meet their payments. According to the Star Ledger:
Then Keto hit a wall. As the low-carb idea took off, huge food companies such as Kraft and Unilever started making hundreds of products that flooded the marketplace, Bey said. Most of those newer items were sold by supermarkets or mass retailers, and Bey said sales of Keto's products, found primarily in health-food stores, dropped.
"We were crushed by the competition," he said, adding he miscalculated by thinking the big companies wouldn't be able to get their products on shelves until this year.
Buyer interest disappeared after Keto missed its financial targets. The company then defaulted on its bank loan.
"We thought we could turn it around between July and the end of the year, and we could not," Bey said.
Keto's food production machinery has been auctioned off. Now, some low carb products might still be available, and they might still be available under the Keto brand name. Why? Because Keto licensed their brand name to Mr. Cookie Face so Mr. Cookie Face could sell Keto low carb ice cream. I don't know what happens to that deal now that Keto is gone, but I'll try to find out.
Now, this is interesting. We'll see if Atkins or some other company can turn things around. In order to do so, I think they need to clean up their act about the sugar alcohols, no maltitol. (Right now, Russell Stover is doing well with maltitol-based products, but this will stop as more and more people find out about the ill effects.) Furthermore, food companies have to stop charging these outrageous prices where people tend to hoard the food rather than eat it.
Low Carb is not dead. One good thing, a lot of food research went on in the past year or two. As our understanding of nutrition matures, we will get rid of a lot of the sugar and high fructose corn syrup, and add more fiber to prepackaged goods, which will be a good thing for everyone.
If the products on my low carb food list remain available, then I'll be OK. (I should have added Kraft low carb barbecue sauce and Heinz low carb ketchup to that list...)
Read about the Keto Company's demise here.
Update: Just heard from Mr. Cookie Face regarding the Keto ice cream: