http://tinyurl.com/2lfyl

Rolling out low-carb bread
Retails for $5.99 for a single loaf
Baker plans items free of trans fats

DANA FLAVELLE
BUSINESS REPORTER

Meet the $5.99 loaf of bread.

Sold under the Atkins brand name, the product is aimed at devotees of the
popular low-carbohydrate diet.

The company that makes it, George Weston Ltd., is also hoping it will help
lift sales as health-conscious consumers shun traditional calorie- and
fat-laden foods.

"If it's well received, you'll see some big stuff," Weston chairman and
president Galen Weston told analysts in a year-end conference call
yesterday.

The company also hopes to eliminate trans fats from its products by the end
of the year, he added.

The Toronto-based company, which operates the Loblaw family of supermarkets
as well as the bakery business, yesterday reported its slowest quarterly
profit gain in two years.

Fourth-quarter profit rose 9.1 per cent to $252 million, or $1.86 a share,
as sales climbed 10 per cent to $7.28 billion.

The bakery division accounted for most of the slump as the company took a
$35 million charge to cover the cost of closing two bakeries.

Weston bakery sales fell 3 per cent during the quarter, mainly due to the
lower value of the dollar in the United States, where the company makes
most of its sales. Operating profit fell 36 per cent.

The firm said its bakery division hopes to gain a competitive edge this
year by introducing healthier products, which also tend to have higher
profit margins.

"The consumer is showing a great interest in healthy whole grains, low
sugar and no carbohydrates," said Gary Prince, president of the U.S. bakery
division. "There's been a move away from white bread. We applaud that move.
It's positive for the industry even though that brand is large."

Atkins bread is just the start. Part of a licensing deal Weston signed with
Atkins Nutritionals Inc. last fall, Weston has the North America exclusive
rights for many baked goods.

This week, Weston introduced six categories of Entenmann's low-carb snacks
and cakes, the company revealed yesterday. Initial U.S. sales have exceeded
expectations, the company said, which could lead to more of the products in
Canada.

The company said it's also developing a low-carb breakfast muffin under its
Thomas brand.

While the value of the deal was not disclosed, an estimated 35 million
people have embraced some form of low-carb diet of the type espoused by the
late Dr. Robert Atkins. A recent controversy surrounding his excessive
weight at the time of his death has apparently not hurt sales.

Referring to another hot topic among health-conscious consumers, Weston
said it's working to eliminate trans fats from its foods by the end of this
year. There is no trans fat in its bread, but there is some in its cakes
and doughnuts, Weston said.

The problem isn't cost, Weston said. "It's a taste issue, getting the right
taste, the right substitute. The challenge will be the doughnuts."

For the year, sales at George Weston, including the Loblaw-owned stores,
rose 6 per cent to $29.2 billion, while earnings rose 15 per cent to $792
million, or $5.80 per share. The results include the positive impact of a
year that included 53 weeks.