Krispy Kreme, Twinkies Struggling To Survive Low-Carb Diet And Health ‘Tsunami’

High-carb junk foods Krispy Kreme doughnuts and Twinkies a dying breed

The message is getting out there and more people now than ever before are starting to believe it. Consuming carbohydrates in the form of excessive sugar and flour is extremely unhealthy and should be avoided as much as possible. Regardless of your dietary philosophy, cutting out refined carbs is a nutritional must if you want to control your weight and improve your health. And the impact of such an epiphany happening in the minds of Americans is hitting some of the most famous American junk food brands hard.

First we have this story from Forbes outlining continued financial losses for the doughnut franchise Krispy Kreme they say have been a result of the rise in ingredient costs and fuel prices with substantial losses totaling $5.9 million in the third quarter this year (compared with just $798,000 in the third quarter of 2007). This follows multiple bankruptcies and store closings within the Winston-Salem, North Carolina-based franchise in 2005, 2006, and 2007.

Krispy Kreme CEO Jim Morgan blames the bad economy on his company’s fiscal failures.

“I am certainly not satisfied with our results for the third quarter,” he explained. “However, we are and have been taking the necessary steps to transform this company, and we’re doing that despite the current economic conditions which are affecting consumers.”

The story accurately notes that the BETTER reason why Krispy Kreme is continuing to have problems is because of the “low-carb dieting craze that damaged the company’s prospects in the midst of a rapid growth spurt.” And therein lies the REAL culprit behind why the company is spittin’ and sputterin’ to grow. People see Krispy Kreme doughnuts for what they are–a nutritionally deficient, garbage calories junk food. And, thus, they are avoiding them more and more.

While some franchisees are trying to promote Krispy Kreme doughnuts as the “best” cheat food on your diet, the reality is people are buying that bogus assertion. Sugar is sugar and carbohydrates are carbohydrates. Carbs drive more of the insulin hormone in the body which raises blood sugar levels leading to pre-diabetes, metabolic syndrome, and obesity. This connection is clicking for so many people because of Gary Taubes’ Good Calories, Bad Calories and the ripple effect that book has made in our culture.

According to CalorieKing, an original glazed Krispy Kreme doughnut contains 22g total carbs, 10g sugar, and 200 calories. I don’t know ANYONE who just eats one of these, especially if they are hot and fresh. Multiply that times five and you’ve got over 100g carbs, 50g sugar, 1000 calories, and you’ll be STARVING again in an hour. People are wising up and learning to stop feeding the beast which spells even more bad news for Krispy Kreme heading into 2009. There will be no tears shed from me if they ever go completely out of business. People want to live healthy…and live longer. Regular doughnut consumption will destroy your health and send you to an early grave.

Next we have this National Public Radio (NPR) story about the fate of Interstate Bakeries, makers of the world-famous creme-filled snack cakes Hostess Twinkies as well as Wonder Bread. The Schiller Park, Illinois-based company filed for bankruptcy in 2004 because of declining sales and, like Krispy Kreme, is struggling to become viable again as a company. They were forced to close down their Southern California bakeries due to their financial difficulties.

Despite the obvious nostalgia we all experience when we see foods like Twinkies and Wonder bread, these are different times now in 2009 America. Obesity and diabetes are MUCH more common today than they were just two or three decades ago and people are becoming wiser about what they are feeding themselves and their children.

The NPR report notes that “a resurgence of low-carb diets” has been one of the leading reasons for the decline is profitability for Interstate Bakeries. They described the influx of damning research on subjects like sugar, trans fats, and carbohydrates and their impact on health as a “tsunami” that literally armed consumers with better information about how to make good choices in their diet. Customer testimonials from parents noted this trend away from Twinkies and Wonder Bread because of this despite the fact it was a part of their lives growing up.

“I have two children, ages 15 and 10, and I work at a pre-school, and we do not serve Wonder Bread, Twinkies or the Hostess snack cakes,” a mother stated. “Our kids don’t need all of the processed white flour.”

They sure don’t! And moms today are becoming much wiser in that regard now than our moms did when we were kids. The perception about sugar and white flour is much more negative than it used to be, although we still have a long way to go. Thankfully the message is seeping into our culture about reading food labels and the effect is showing up in the loss of revenue for companies like Interstate Bakeries.

Again, according to CalorieKing, a Twinkie has 27g total carbs, 19g sugar, and 150 calories in just one Twinkie. Of course, nobody just has ONE Twinkie as they come packaged in two or three at your local convenience store. Three Twinkies would be over 80g total carbs, nearly 60g sugar, and 450 calories. Although the fat content of Twinkies is less than a Krispy Kreme doughnut, the sugar in these is horrific coming from both sugar and high fructose corn syrup. EEEEK!

As for the Wonder Bread, CalorieKing shows the total carbohydrates as 12g and 60 calories per slice. It sound innocuous, but this product is almost all white flour–a surefire way to spike your insulin levels no matter what you slap between two slices of this stuff!

Seeing the companies that make Krispy Kreme doughnuts, Twinkies, and Wonder Bread all struggling and going through labor cuts and bankruptcies to deal with their financial woes reminds me of how stark the media coverage was of another company that went through similar circumstances in 2005–Atkins Nutritionals. The company with the namesake of the late great Dr. Robert C. Atkins was literally run through the mud by a relentless media dead set on bringing the company to an end.

But that didn’t happen.

Atkins Nutritionals survived their bankruptcy and a frivolous lawsuit by Jody Gorran that was thrown out of court after years of dragging their name through the mud. Today, they are stronger and thriving as a result of their restructuring and refocus on the market that made them who they were. If Krispy Kreme and Interstate Bakeries made such a resounding comeback like this, then don’t you think it would make front page news in the Business section with a headline like, “Low-Carb Diets Deceased, Donuts And Bread Come Back To Life!”

But I don’t see it happening now because people are armed with the truth. Steer clear of the sugar, avoid the white flour, and choose wisely about what you eat so you can avoid becoming overweight or obese and keep yourself and your family healthy. If these companies go out of business because the consumer begins rejecting their products, what’s so bad about that? Welcome to Capitalism 101.