• Forbes, Tuesday, January 26, 2010 10:52 AM

The Atkins Diet -- go ahead, feast on bacon, eggs, cheese , etc. but go light on bread, pasta and other carbs -- first took off when Dr. Robert C. Atkins published his Diet Revolution in 1972. By the late-1990s, Laurie Burkitt reports, the doc was selling more than 100 products, from sugar-free maple syrup to protein powder, from a Web site and store. Then, in 2003, he died.

Goldman Sachs and a private-equity firm bought a majority stake in late 2003 and expanded the product line to 200 low-carb bars and snacks. Atkins Nutritionals filed for Chapter 11 bankruptcy protection in July 2005; emerging in 2006. Then, two years ago, Monty Sharma and North Castle Partners acquired the company.

As CEO, Sharma has trimmed back to 64 products, including nutrition bars and ready-to-drink shakes, and just launched a $20 million ad campaign. He has also revamped recipes and packaging and hopes a book coming out in March -- A New Atkins, A New You -- will reverse recent fortunes. One big difference: Atkins now urges people to munch their veggies. "No more of the 'meat all the time,'" says Sharma. "People have to eat vegetables too."

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