The iconic weight loss brand, Jenny Craig, is set for a digital resurgence, as the rapidly advancing direct-to-consumer (D2C) trend provides an opportunity for weight loss enterprises to connect with audiences in increasingly customized ways.

Wellful, the omnichannel health and diet food firm behind rival brand Nutrisystem, disclosed on Wednesday (July 5) that it has acquired the assets of Jenny Craig, with plans to rejuvenate the brand this autumn as a D2C entity that offers food delivery and personalized guidance.

"The Jenny Craig brand is a distinguished addition to Wellful's portfolio of established health and wellness brands," stated Wellful CEO, Brandon Adcock. "Jenny Craig's 40-year legacy of dedication to aiding individuals in weight loss and promoting healthier lifestyles is set to be enhanced through this acquisition."

The announcement comes after Jenny Craig's earlier cessation of operations and bankruptcy filing. Nutrisystem seized this opportunity to address the evolving dynamics in the weight loss industry, highlighting the shift from traditional retailing to D2C models.

"Contemporary consumers demand swift and convenient product delivery, particularly in achieving their health and wellness objectives," commented Nutrisystem President, Stephen Mikulak, earlier in the year. "The global market is migrating online, and we have been progressively adapting to accommodate this transition."

A growing inclination towards D2C meal delivery is evident. Findings from a PYMNTS study, "Connected Dining: Ready-to-Eat Meals Are Eating Restaurants' Lunch," indicate that approximately 10% of consumers receive ready-to-eat meals at their homes each month. Moreover, according to a further PYMNTS study, "12 Months of the ConnectedEconomy™: 33,000 Consumers on Digital's Role in Their Everyday Lives," nearly one-third of consumers had subscribed to meal kits online as of last November.

Furthermore, diet foods are ideally suited to the D2C model, enabling niche products with devoted followers to circumnavigate traditional retail pitfalls. With a fragmented diet market and varying consumer dietary needs, it has become increasingly challenging for any single player to secure a large enough audience through conventional retail channels.

Despite these challenges, potential opportunities in the market are abundant. According to research by the Centers for Disease Control and Prevention (CDC), the percentage of consumers on diets increased notably between 2015 and 2018, from the previous decade, with a surge in the popularity of several diets.

This shift is reflected in the D2C diet sector, with the emergence of meal plan companies like Noom, and diet-specific foods such as Magic Spoon. Even industry veteran Weight Watchers (or WW) now operates a D2C store on its site, offering products ranging from "low point snacks" to bathroom scales and recipe books.

Operating in the eCommerce landscape, D2C diet brands are in a unique position to leverage consumer data to tailor their marketing strategies, rather than relying on the unpredictable nature of in-store visibility.

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Sources: https://www.pymnts.com/news/ecommerce/2023/jenny-craig-ecommerce-revival-d2c-supercharges-weight-loss-industry/