Gluten Takes A Beating From Fad Dieters & Grain Giants

Grain sellers want to have their gluten-free cake and eat it, too.

As the stretchy protein found in wheat and other grains has become the latest dietary bogeyman, sales at companies like General Mills Inc. (GIS:US), Kellogg Co. (K:US) and Britain’s Warburtons Ltd. have come under pressure. Yet instead of fighting back against what many dietitians contend lacks scientific grounding, they’re boosting output of pricier gluten-free foods while leaving industry groups to defend their traditional products.

Less than 1 percent of Americans have the disorder that requires a gluten-free diet, yet almost one in three now eschews gluten, according to trend watchers NPD Group, influenced by bestselling anti-gluten books and celebrity endorsements. The U.S. market for gluten-free foods will climb from $4.2 billion in 2012 to $6.6 billion by 2017, according to researcher Packaged Facts, as bread bakers, craft-beer makers and eateries from Hooters to Michelin-starred Hakkasan embrace the trend.

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