minnat3
Fri, Mar-12-04, 07:16
Slim-Fast is a disgracefully sugary product, but I'm sure sorry for the job loss in my area. I hope these folks can find work in a healthier industry.
commercialappeal.com - Memphis, TN
http://www.commercialappeal.com/mca/business/article/0,1426,MCA_440_2723401,00.html
Tipton (County, TN) Slim-Fast plant cuts 116 jobs
By Linda A. Moore
March 12, 2004
Pressured by the growing competition in the weight loss industry, Slim-Fast Foods Co. will lay off nearly a third of its workforce in Covington today.
The 116 jobs account for 29 percent of the 400 employees who work at the manufacturing plant making Slim-Fast ready-to-drink beverages.
"The weight management category has been affected by competition and some big shifts in consumer behavior," said Katherine Beyer, public relations manager for Unilever, Slim-Fast's London-based parent company.
West Palm Beach, Fla.-based Slim-Fast's sales and profits have been declining, and company officials said the layoffs will improve efficiency and better align its resources.
The company notified the affected salaried and hourly workers late last week and is providing out-placement counseling and severance packages, Beyer said.
The layoffs are a tough hit for Covington, population 8,643, and Tipton County.
"It's going to have a major impact," said Beth Stiles, director of business service for the Tipton County Chamber of Commerce. "A lot of people are without jobs and with the economy the way it is now, there's not a lot of people hiring."
Tipton County has about 56,000 people, of whom about 25,000 are in the labor pool.
Other companies that have operations in Covington include Turner Dairies, Quebecor World, Charms, Delfield and Mueller Industries.
While the layoffs are a setback, the city will continue its efforts to attract more industry, said Covington Mayor Russell Bailey.
"We regret it, but . . . really, we've been fortunate. I think Covington and Tipton County has been fortunate in not experiencing some of the layoffs and reductions in workforce that have hit some other parts of the country."
Covington has had a tax abatement program for new industry for 10 years with incentives tied to the number of jobs created, Bailey said. The Covington Industrial Development Board also has land in industrial parks to the north and south of the city.
The layoffs at Slim-Fast are a result of the ever growing weight-loss industry and the rising popularity of low-carb diets.
"There clearly is a trend in the marketplace right now for low-carb foods," said Jeff Stein, an analyst with McDonald Investment Co. in Cleveland who follows the weight-loss industry. "Consequently, if you're not selling low-carb products, that has the potential of squeezing too many players out of the market."
Slim-Fast recently introduced a line of low-carb products. But competition is tough.
Weight loss products are a $40 billion industry, about 70 percent of it dominated by the self-help segment that includes products like Slim-Fast.
The remainder includes professional companies like publicly traded Weight Watchers International Inc. and privately held Jenny Craig Inc.
The industry, Stein said, is growing at a rate of about 5 to 7 percent a year.
The government is slated to begin a campaign highlighting the problem of obesity in America, Stein said.
- Linda A. Moore: 529-2702
Copyright 2004, commercialappeal.com - Memphis, TN. All Rights Reserved.
commercialappeal.com - Memphis, TN
http://www.commercialappeal.com/mca/business/article/0,1426,MCA_440_2723401,00.html
Tipton (County, TN) Slim-Fast plant cuts 116 jobs
By Linda A. Moore
March 12, 2004
Pressured by the growing competition in the weight loss industry, Slim-Fast Foods Co. will lay off nearly a third of its workforce in Covington today.
The 116 jobs account for 29 percent of the 400 employees who work at the manufacturing plant making Slim-Fast ready-to-drink beverages.
"The weight management category has been affected by competition and some big shifts in consumer behavior," said Katherine Beyer, public relations manager for Unilever, Slim-Fast's London-based parent company.
West Palm Beach, Fla.-based Slim-Fast's sales and profits have been declining, and company officials said the layoffs will improve efficiency and better align its resources.
The company notified the affected salaried and hourly workers late last week and is providing out-placement counseling and severance packages, Beyer said.
The layoffs are a tough hit for Covington, population 8,643, and Tipton County.
"It's going to have a major impact," said Beth Stiles, director of business service for the Tipton County Chamber of Commerce. "A lot of people are without jobs and with the economy the way it is now, there's not a lot of people hiring."
Tipton County has about 56,000 people, of whom about 25,000 are in the labor pool.
Other companies that have operations in Covington include Turner Dairies, Quebecor World, Charms, Delfield and Mueller Industries.
While the layoffs are a setback, the city will continue its efforts to attract more industry, said Covington Mayor Russell Bailey.
"We regret it, but . . . really, we've been fortunate. I think Covington and Tipton County has been fortunate in not experiencing some of the layoffs and reductions in workforce that have hit some other parts of the country."
Covington has had a tax abatement program for new industry for 10 years with incentives tied to the number of jobs created, Bailey said. The Covington Industrial Development Board also has land in industrial parks to the north and south of the city.
The layoffs at Slim-Fast are a result of the ever growing weight-loss industry and the rising popularity of low-carb diets.
"There clearly is a trend in the marketplace right now for low-carb foods," said Jeff Stein, an analyst with McDonald Investment Co. in Cleveland who follows the weight-loss industry. "Consequently, if you're not selling low-carb products, that has the potential of squeezing too many players out of the market."
Slim-Fast recently introduced a line of low-carb products. But competition is tough.
Weight loss products are a $40 billion industry, about 70 percent of it dominated by the self-help segment that includes products like Slim-Fast.
The remainder includes professional companies like publicly traded Weight Watchers International Inc. and privately held Jenny Craig Inc.
The industry, Stein said, is growing at a rate of about 5 to 7 percent a year.
The government is slated to begin a campaign highlighting the problem of obesity in America, Stein said.
- Linda A. Moore: 529-2702
Copyright 2004, commercialappeal.com - Memphis, TN. All Rights Reserved.