Diet Companies Hire Black Stars to Fatten Profits

By Frederick H. Lowe
The nation's three leading weight-loss companies have hired black spokespersons, signaling that these firms are targeting a demographic associated with the nation's highest obesity rates.

At the same time, the outreach will help the companies fatten their corporate bank accounts in a business where sales are projected to reach $3.4 billion in 2012, an increase from $3.3 billion in 2011, Caitlin Moldvay, lead analyst for IBISWorld in Los Angeles, tells The NorthStar News & Analysis. Weight–loss companies spend 15 percent to 17 percent of their revenues on advertising to attract new clients, Moldvay said.

In December, NutriSystem Inc., a Fort Washington, Pa.-based company, announced that it had inked a deal with singer Janet Jackson, Michael Jackson's sister, to serve as the company's spokesperson. Jackson launched SUCCESS, Nutrisystem's most-comprehensive weight-loss program to date.

Nutrisystem reported third-quarter 2011 revenues in November of $85.6 million, making it the nation's second-largest weight-loss company behind Weight Watchers International Inc., a New York-based company that reported revenues of $1.452 billion in 2010.

Weight Watchers signed agreements with Academy Award-winning actress and singer Jennifer Hudson in April 2010, and with Charles Barkley, a member of the National Basketball Hall of Fame and a NBA analyst, in December. 

Jenny Craig, which is owned by Paris-based Nestlé SA, the world's largest food and nutrition company, in November named singer Mariah Carey as brand ambassador. Jenny Craig, the nation's third-largest weight-loss company, also has agreements with actress/singer Queen Latifah and actress Phylicia Rashad.

Moldvay said the three companies have hired black spokespersons to attract African-American consumers. “The obesity rates are high in the black community, and weight loss companies see this as an area where they can grow their revenue,” Moldvay said.

Obesity is a medical condition in which excess body fat has accumulated to the extent that it may have an adverse effect on health, leading to reduced life expectancy and/or increased health problems. The U.S. Centers for Disease Control and Prevention defines obesity for adults as having a body mass index (height/weight ratio) of 30 or higher.

The 2008 National Health and Nutrition Examination Survey, which is based the  Centers for Disease Control and Prevention data, reported that the number of people in the U.S. who are considered fat or obese has surged, particularly among black men and black women.

“Overall, 68 percent of Americans are overweight or obese,” Moldvay said. “There has been an increase in the obesity level since 1988, when 23 percent were obese.”

From 1988 to 1994, 21.1 percent of African-American men were considered obese. From 2007 through 2008, the percentage of black men considered obese surged to 37.3 percent. In comparison, 20.3 percent of white men were considered obese in 1988 to 1994. From 2007 to 2008, the obesity rate among white men was 31.9 percent.

In the case of black women, the obesity rate was 38.2 percent for 1988 to 1994. From 2007 to 2008, the obesity rate reached 49.6 percent among black women. In comparison, 22.9 percent of white women were considered obese from 1988 to 1994. From 2007 to 2008, 33 percent of white women were considered obese.

Weight Watchers' agreement with Barkley means the company is also targeting men, who have been a relatively untapped market, Moldvay said.“Ninety percent of weight-loss customers are women, but 72.3 percent of men are fat or obese, compared with 64.1 percent of women,” she added.

Last month, Barkley began appearing in print and online ads as part of Weight Watchers’ new, “Lose Like a Man,” advertising campaign. “Like a lot of athletes, I've gained weight since I've retired,” Barkley said. “But I don't want to be a fat, old man taking lots of pills. Weight Watchers is helping me change my lifestyle and learn how to make smarter eating choices anywhere I am.”