A study by NPD Group, an independent marketing information company, found that the percentage of American adults on any low-carb diet in 2004 peaked at 9.1 percent in February and dropped to 4.9 percent by early November.
Further, it said only one of four people surveyed was significantly cutting carbs and "virtually none" were reducing carbs as much as the diets recommended.
That means many companies that rode the low-carb wave are either out of business or refocusing their strategies.
One example: MGP Ingredients Inc. of Atchison, Kansas, which profited from the low-carb trend, earlier this month announced it was cutting its fiscal 2005 per-share earnings forecast by more than half — from $1.08 to no more than 50 cents.
As I said before, fads can be profitable, but you need an exit strategy.