The second main substitute that presents a threat to profitability rests in the changing
preferences of consumers. In recent years, there has been a push toward food and
beverage products that are geared towards health, nutrition, and general wellness. As
stated in the 10Q, a risk to company profits is “changing consumer preferences,
including diet trends.” The newfound success of products associated with the Atkins
Diet, the South Beach Diet, and other diets have resulted in the substitution of some of
Kraft’s less healthy products with more nutritionally sound products. Most industry
analysts believe that the trend toward health food is here to stay as we now have much
better information about the effects of certain foods on health. This has led Kraft to
increase the nutritional value of their own products and to make their nutritional
contents more available to consumers.