The Big Flop - Jenny Craig: Cashing In On Crash Diets with Ronald Young Jr. and Emmy Blotnick | 90

Episode Date: June 2, 2025

In the '90s, Jenny Craig wasn't just selling frozen meals – she was selling the American dream, one tiny chocolate cheesecake at a time. But between shady advertising claims, the Fen-Phen c...risis, and a jaw injury that silenced their spokeswoman, this weight loss queen discovered that even the most carefully counted calories couldn't save her empire from crumbling.Ronald Young Jr. (Weight for It) and Emmy Blotnick (The English Teacher, Bust Down) join Misha to shed some light on the many missteps of this dieting heavyweight.Be the first to know about Wondery’s newest podcasts, curated recommendations, and more! Sign up now at https://wondery.fm/wonderynewsletterListen to The Big Flop on the Wondery App or wherever you get your podcasts. You can listen early and ad-free on Wondery+. Join Wondery+ in the Wondery App, Apple Podcasts or Spotify. Start your free trial by visiting wondery.com/links/the-big-flop/ now.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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Starting point is 00:00:00 Picture this. You're lounging on your couch, ready to indulge in another hilariously disastrous episode of The Big Flop, but then, bam, an ad. Don't let that be you. With Wondery Plus, you can enjoy The Big Flop a whole week early and completely ad-free. It's like having a fast pass to the front row of the VIP section. Upgrade your listening experience and join Wondery Plus in the Wondery app or in Apple podcasts. Your uninterrupted flop fix awaits. Imagine. It's the 90s and you've invested in Jenny Craig's frozen diet meals and they've
Starting point is 00:00:49 sent you some dessert. You defrost your triple chocolate cheesecake and pull back the lid to reveal one bite of cheesecake. Where's the cake, Jenny? Everybody wants to lose weight quickly and easily. bite of cheesecake. Where's the cake, Jenny? Everybody wants to lose weight quickly and easily. At Jenny Craig, we get results. Weight loss giant Jenny Craig may shudder its corporate office
Starting point is 00:01:13 as soon as this Friday. The company struggles just one sign of a seismic shift in the $75 billion diet industry. We are on a sinking ship. dollar diet industry. Looking for the ultimate online casino experience? Step into the BedMGM Casino app, where every deal, spin and gold brings Las Vegas excitement into the palm of your hand. Take your seat at Premium Blackjack Pro,
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Starting point is 00:02:10 If you have questions or concerns about your gambling or someone close to you, please contact Connex Ontario at 1-866-531-2600 to speak to an advisor free of charge. BetMGM operates pursuant to an operating agreement with iGaming Ontario. Last year, long crime brought you the trial that captivated the nation. And one question still lingers,
Starting point is 00:02:34 did Karen Reed kill John O'Keefe? This isn't just a retrial, it's a second chance at the truth. Listen to episodes of Karen, the Retrial, exclusively and ad-free on Wondery+. From Wondery and Atwill Media, this is The Big Flop, where we chronicle the greatest flubs, fails and blunders of all time.
Starting point is 00:03:00 I'm your host, Misha Brown, social media superstar and trying to get down to my birth weight at your bestie, Misha Brown, social media superstar and trying to get down to my birth weight at your bestie Misha. And on our show today, I'm so excited because we have a prolific podcast host. You can catch him on several shows, including Pop Culture Debate Club and Wait For It. It's Ronald Young Jr.
Starting point is 00:03:22 Hey, Ronald. Hello, Misha. I'm happy to be here. Joining Ronald, we also have a comedian, actress, and writer. It's Emmy Blotnick. Hey, bestie. Hi. Thanks for having me. Before we get into Jenny Craig, have any of us tried weight loss diets?
Starting point is 00:03:40 And I guess was it Jenny Craig? I recall Jenny Craig, but I don't think I had... I think I was a child with no money in Jenny Craig's peak. Sure, sure, sure. So I've had to resort to lower cost options. I never did Jenny Craig, never did Weight Watchers, anything like that. But I feel like I've been surrounded by diet culture most of my life. Okay, we're not Jenny Craig alums here. So let's get into the saga.
Starting point is 00:04:06 Jenny Craig, the person, nay. Genevieve Marie Goudreau was born in 1932 in Louisiana. She's the youngest of six children and times are tough because it's the old Great Depression. Her father works three jobs just to keep the family afloat and Jenny idolizes him. As America's economy springs back following World War II, Jenny, like many who grew up in the 30s and 40s, comes to believe that anything can be accomplished if you just work hard enough at it, just like her daddy did. We love some delusional post-war optimism. Now, I just want to give a quick disclaimer. It's important to set one thing straight before we get into the rise and fall of the Jenny Craig Weight Loss Company.
Starting point is 00:04:50 It is almost universally accepted now that losing weight is an incredibly difficult thing to do. Like, it's unnatural. Our bodies have an equilibrium, and when we drastically mess with it, we can become less healthy, even if we slim down temporarily. Unfortunately, despite Jenny Craig being sort of the uber-empowered business lady to some, her company does contribute to toxic diet culture. And some may even say misogyny. So we just want to put that out there at the beginning. That's what I'm talking about, Misha.
Starting point is 00:05:21 Right off the top. Let them know where we stand. I love it. Let them know. Shame on you, Genevieve. Well, Jenny's family, they can't afford to send her to college. So she heads straight into the workforce and she also starts a family. And this seems to be where her fixation on weight loss begins. After her second kid, the weight was just not coming off and Jenny, she is not happy about it. So what does good old Jen do? She gets hyper fixated on all
Starting point is 00:05:52 things fitness. She becomes a regular at a gym called Silhouette and she scours the local library for books about dieting and health. And the managers of Silhouette gyms, they are impressed because she's not only exercising, but she's almost evangelical about it. Talking to everyone in sight about their own weight loss goals, which, boundaries. I have to say just as an aside, silhouette is a great name for a gym because a silhouette can actually be any shape. I feel like when they say silhouette, that sounds ambiguous, but what if they
Starting point is 00:06:27 would have called the gym something like flattery or flattering? But they use something that was a little bit more ambiguous. So you're absolutely right. Yes. Come to the gym, a person's shadow. But can you imagine Genevieve just like walking up to random strangers and just being like, Hi, how are you on your weight loss journey? So I'm a headphones in, don't talk to me, don't look at me.
Starting point is 00:06:52 I'm in my own world. You know, as somebody who's been at the gym on the treadmill working out and had people walk up to me to give me advice for losing weight. Oh, like this is not surprising. Like I'm like, I'm already here. I'm doing the thing that you're shaming me into doing it. You're still like, Hey, you want to do that more? You want to speed that treadmill up? Like, could you make this faster?
Starting point is 00:07:12 Leave me alone. Yeah, it sounds like maybe she had like now that we're talking about it. I'm like, this is kind of a harassment campaign. Approaching exercising exercising people? What are you thinking, Genevieve? Well her harassment campaign, it works because by the early 1960s, Jenny's managing five silhouette locations. And she mortgages her home to open her very own gym called Healthletic and quickly sells
Starting point is 00:07:43 it to Silhouette. So she's a business woman everybody. Wow. What is Healthletic a portmanteau of? Is it health and athletic or is it like health and fanatic? What are the words we're using here? It's health and fabletics, the Kate Hudson yoga pants. Gotcha. So it's a portmanteau of another portmanteau. Yeah, there we go. There we go. Jenny also works with her sister on a body wrapping spa idea and then moves on to work for another company, Body Contour Inc. figure salons, which if you think that's a mouthful,
Starting point is 00:08:19 that's how companies used to be named. So stop yelling at me for it. I'm with the portmanteau back now. I was like, can you smash all those words together, please? Please. At Body Contour, Jenny meets her future everything, Mr. Sid Craig, a former child tap dancer turned ballroom dance instructor who worked his way up over the years at the company to become president of Body Contour. Sid was also born in 1932, so they're both Great Depression kids and have been shaped by hard times. For nine years, Sid and Jenny work side by side while married to other people, barely containing their desire for each other, furred of glances, etc. etc.
Starting point is 00:09:01 But in 1979, they finally divorce their mutual spouses and tie the knot in Vegas. And we have a picture of them. Here they are. Wow. Wow. I don't know what I was expecting, but the top hat certainly sends a message.
Starting point is 00:09:17 Yes. And I didn't realize until I saw this photo that a woman in opaque white hosiery is that is sort of the ladies top hat. There's something about the stark, this ghostly, ghostly hose. It's really striking. There's something about the way that he's the way he's doing the piano hands on the shoulder to immediately. I'm like, is this a cry for help?
Starting point is 00:09:48 Like, what are we? What's going on here? Yeah, it's very like, look what I caught, like guy with a trout sort of pose. And this looks like is this Commander's Palace in New Orleans? It could be. This really has a sort of like slightly haunted look to the decor. For sure, for sure. But yeah, for the listeners only, they are very prim. They are very proper.
Starting point is 00:10:12 Cute couple. We'll give them that. They're a cute couple. So Sid supports his amazing new wife at every step along the way as she climbs. What about the last wife? What about the other wife? I'm still thinking about like, wife? What about the other wife? I'm still thinking about like, I can root for this couple, but like, are we're just going to leave another man and woman in the dust? Who knows? Maybe they found
Starting point is 00:10:37 each other and they're very happy. I don't know. Oh my God. So by 1981, Jenny has become the National Director of Operations for Body Contour's owner. What's not so great is that she and Sid start bickering with the owners. And after some behind the scenes negotiating, an agreement is struck to sell the figure salon to a new up and coming company that sells pre-packaged diet meals, Nutrisystem. Oh boy. Oh boy. Oh boy. These are like the Avengers of diet culture. Like the I'm sorry, not even the Avengers. What is the opposite of the Avengers? Whatever that is. They're the bad of diet culture. The Expendables? Is that a different franchise?
Starting point is 00:11:19 I think those were good guys too. Whatever they are, these are the bad guys. These are the bad guys. Yes, Jenny and Sid are now free from their stifling partners at Body Contour and can start their own company. And they also make out like bandits. For their part in this sale, Jenny and Sid are going to make $7.5 million.
Starting point is 00:11:38 That's like $25 million in today money. And they'll get another half million to stay on and help Nutrisystem with the transition. So I'm guessing I can already tell, but how do we feel about these pre-packaged diet meals? I've had Nutrisystem food and it's garbage. It just doesn't taste good. They try to convince you, oh my God, it's so good.
Starting point is 00:12:02 You'll just want to keep eating it. I'm like, no, I don't want to keep eating it. I guess that's kind of the point of NutriSystem is that you eat it, you get sad, and you're like, I don't want to be food anymore. And I get sad. Is it frozen? What are they? They're frozen, pre-packaged meals that you just heat up in the microwave. Talk about the sodium content. up in the microwave. Talk about the sodium content. It's like airplane style, like the little tray and it's microwaved and like, or I guess
Starting point is 00:12:34 the oven if you love yourself, but it's like, there's only so there's a ceiling on how good a little a little foil rectangle can be. Yeah. Now, another problem is that Jenny and Sid really don't like working with Nutrisystem C-suite. And it's like it's a gross cigar filled boys club, right? There's actually a riveting five part series about this called The Diet Wars from Wanderys Own Business Wars.
Starting point is 00:13:02 Very fun. Go listen to that. So Jenny and Sid bailed halfway through their one-year commitment with Nutrisystem, but they kind of liked the idea of selling pre-paid meals. However, they signed a non-compete for the buyout for two years. All diet and weight loss businesses are off the table for the power couple. Except in Australia. So with over $7 million to play with, Jenny and Sid head down under to test out their brilliant ideas with the goal of coming back to America in two years with a brand already built. And Sid suggests they
Starting point is 00:13:38 call their company Jenny Craig. How sweet. Wow. How sweet. Is it sweet or is it like passing the buck? Is it kind of like, like, if this goes south, they'll blame you? I don't know. I don't want to aspire malicious intent to, to Sid. So Jenny Craig's comprehensive weight loss program will include weekly counseling, as well as lifestyle classes and behavior modification tapes on cassette. So like a podcast. And there's also a low impact exercise program. But most importantly, there's the food. Jenny's own prepackaged and frozen meals. Do you have any idea what makes Jenny Craig's cuisine
Starting point is 00:14:23 so special compared to her competitors? The sodium? Margarine? It's usually... I thought it was a very margarine heavy time. Butter and salt? No, the answer is nothing. Nothing. The meals aren't that much healthier than a typical TV dinner, but they are smaller.
Starting point is 00:14:44 Yeah. Oh my god. They figured it out. The key to the Jenny Craig diet is calorie restriction. The target zone is 1200 to 1700 calories per day and depending on how we're built, most adults need between 2 and 3000 calories per day. So Jenny Craig's meals, even if they're technically decadent sounding things like chicken fettuccine Alfredo or triple chocolate cheesecake are teensy. And
Starting point is 00:15:12 if you're really hungry, the program lets you eat as many vegetables as you want, which of course you have to buy yourself. Do you know how infuriating it would be to open a triple chocolate cheesecake and it'd be like one bite? Yeah, you're like, where is it? I'd be so angry, tear the room apart, be like, come on, man. I know myself, if I were like, okay, I'm going to be on this like super strict Jenny Craig diet and I was looking forward all week to that triple chocolate cheesecake and it came
Starting point is 00:15:44 out and it was one bite, I would go on a binge. It would do the opposite. How do you not just eat your whole week? Yes, if not or like you're losing weight from tearing the room apart in anger, punching holes in the wall. Where's the rest of the cake? Rage does burn calories. So by 1983, Jenny and Sid have spent half their money on opening nine weight loss centers across Melbourne, but nobody signs up. Australians don't know that they need weight loss centers yet. So how would you convince them that they absolutely need to like, what would be your business plan? I'd say, oh, I might. It's a strong start. Strong start.
Starting point is 00:16:31 You need some shrimp on the bar. I have no idea. I don't know how to talk to Australians. I love it. I love it. You are very committed. They'd be mad at me for being a bigot. I'm sorry.
Starting point is 00:16:39 Yeah, it's tough because the Australians are kind of a like naturally hot people. There's like they all surf and run and stuff. So like do you just have to go nagging people with your husband like door to door? Do you want to move like ray gun? Catching strays every day. every day. Yeah. We gotta get her. Ha ha ha.
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Starting point is 00:17:38 It's been 80 years since World War II came to an end in Europe. And Wondry is marking the anniversary with three brand new seasons of British Scandal, The Spy Who and Legacy. In our podcast British Scandal, we uncover the bizarre tale of William Joyce, dubbed Lord Ho Ho, the plummy-voiced traitor who became Hitler's favourite broadcaster. His radio catchphrase, Germany Calling, reached millions of British listeners. But behind the mic, Joyce's loyalties were anything but British. In the latest season of The Spy Who, we open the file on Hardy Ames,
Starting point is 00:18:14 the spy who dressed the Queen. Fashion designer Hardy Ames lives in two worlds, one of elegance, where he dresses Hollywood icons and royalty, and another in the shadows, where he orchestrates assassinations in Nazi-occupied Belgium. And in our podcast, Legacy, we're talking about Joseph Stalin, a murderous dictator who saved the world from another murderous dictator. The man who defeated Hitler, but also the man who oversaw the deaths of millions of his own people. How did he get away with it? And why is he so popular in Russia today?
Starting point is 00:18:49 So whether it's a double agent, a dictator or a disgraced broadcaster, get stuck into Wondery's VE Day specials from British Scandal, The Spy Who and Legacy. Find them wherever you listen to podcasts or binge the full seasons early and ad free on Wond3 Plus. What Jenny and Sid do is they borrow some money and they open up even more centers to make the Jenny Craig brand seem more successful. Classic. And they get really crafty with their ad campaigns, which are a cross between PSAs and infomercials. And in many of them, Jenny speaks directly to camera, sometimes surrounded by women in lab coats,
Starting point is 00:19:34 while she weightsplains the process. Wait, hold on, Risha, did you just say weightsplain? Weightsplains. I can't let you slide, but that's not a thing. Yeah, that's not a thing. It's an instant classic, actually. You were just going to coast right by, like we didn't hear you say that.
Starting point is 00:19:50 I'm like, yeah, let me just try this one. We heard you. OK, OK. So these ads, they also include before and after pictures with quote unquote real testimonials from folks who've lost weight on the program. Let's take a look. I was a fat person with a thin person inside.
Starting point is 00:20:12 Jenny's program has given me a whole new life. I lost 16 kilos in three months. You know, okay, so the first thing is, as an American about to say the most American thing ever, when they say and I know we should be on the metric system, but whenever they say 16 kilos, I'm like, I don't know if that's a lot of weight. That could literally be anything, lady. Is this a success or not? I think 16 kilos is the amount of cocaine you're allowed to have for personal use.
Starting point is 00:20:54 And she looked fine before is the other thing. I think they put her in a big nightgown in the before picture. Yeah, it was really the outfit that was doing the worst to you. It was not your weight. Just change your clothes. Yeah. She could have been like earlier today, I was in a very unflattering night down and now I've put a belt over my blazer. I also want to know was I was a fat person with a thin person inside scripted or just like off the cuff. It's kind of like, there's something very dark and existential about that, right? That's a whole principle like and that was like what they were doing at that time is it well there's a thin person inside you waiting to get out. I'm like, what is the thin person
Starting point is 00:21:35 in the room with us right now? What are you talking about? Like, what's the difference here? Yeah, that's yeah, they're like, I haven't met her yet. I don't know. Hello, is she in here? Yeah. Yeah. Like somehow she has to break out of the fat bucket. Oh. So Jenny and Sid hope all this PR will discourage other weight loss companies from muscling in on their turf,
Starting point is 00:21:57 all while Australians realize how desperately they need to lose weight. And it works, actually. By the end of their first year in Australia, Jenny and Sid have opened 50 weight loss centers, and that number quickly doubles. And with that kind of momentum and the two-year non-compete timed out,
Starting point is 00:22:16 the path is clear for the Craig's triumphant return to the good old US of A. What could go wrong? No, no, seriously, like what could go wrong? What? Like, I know this probably negates the format of the podcast, because I think we're going to find out what actually goes wrong. But like, the real question is what can't go wrong? Like you spent a bunch of money opening centers that probably aren't even servicing people, but somehow dictated success through the promotional
Starting point is 00:22:45 campaigns and now you're going to turn around and try to like repeat that format with what type of results in the United States. Like I mean, it's snake oil so of course people are going to buy it. But yeah, you're right. What could go wrong here? What could go wrong? Well, their first little hiccup. In 1985, the Craig's casually plop onto the LA fitness scene and open 12 Jenny Craig weight
Starting point is 00:23:07 loss centers all at the same time. But here's the problem. Competition in Los Angeles is fierce. This is LA. The city is chock full of gyms and weight loss programs. So they had to figure out how to get people to choose Jenny Craig. And they start by selling frozen meals on site at the fitness centers. Like, finish your sets and reward yourself with a teeny tiny chicken parm. Yeah, again, Misha, if I open that package and there's not a healthy size of chicken parm, I'm destroying this room.
Starting point is 00:23:43 So they need to get get creative and what really moves the needle is their ad campaigns. Do you remember the jingle? I'm sure if you played it, we might. I feel like you're about to remind us. It was like, let yourself feel how you want to feel. 1-800-94 Jenny. Yes, 1-800-94 Jenny. Yes.
Starting point is 00:24:03 It rings a bell. Also, you have the voice of an angel, Misha. Absolutely. At the beginning of this, I was like, I am buying Yes! One 8-putt of an Angel, Misha. Absolutely. At the beginning of this, I was like, I am buying Jenny Craig. Yeah, with no warm-up? Are you kidding me? That was wonderful. Feel how I want to feel. Don't mind if I do. She was a professional singer for years before talking shit on the internet. Yeah. So the ads, they aren't just memorable for their music, but also famous faces. So to find out which celebrities have shilled out
Starting point is 00:24:32 for Jenny Craig over the years, let's play a game. Okay, here are the rules. I'm going to ask you some trivia questions about famous people from Jenny Craig spots and whoever gets the most correct answer wins. A teeny tiny chicken parm. Let's go. All right, first question.
Starting point is 00:24:54 In terms of digital downloads, this recording artist has arguably the best selling Christmas single of all time. Oh, that's Mariah Carey. Is this Mariah Carey, that's Mariah Carey. Is this Mariah Carey? Yes, Mariah Carey. No, Mariah. It was in fact Mariah. She was a Jenny Craig spokesperson in the early 2010s. All right, second question.
Starting point is 00:25:17 This member of The View was also a Jenny Craig ambassador. It's funny because it could be anyone on the view, not because they're like out of shape or anything, but I could see any of the women on the view doing this, but probably Joy Behar. I don't know how you came to that conclusion, but you're correct. And here's a clip of Joy Behar.
Starting point is 00:25:40 Cabbage soup, wheatgrass, fad diets belong in the garbage, but I belong in this outfit. Wow. It's just a black outfit. Joy, you could wear that any time. Yeah, that is very true. The outfit was like very not shape specific.
Starting point is 00:26:00 No. And I don't know, cabbage soup. Was that a fad diet? Nobody's ever offered me cabbage soup before. Me either. No. I was like, is this a potato famine? Like, what are we talking about here?
Starting point is 00:26:13 All right. Third question. This Jenny Craig spokeswoman was nominated for an Oscar for her supporting role in the movie musical Chicago. I didn't know this was going to be, it's funny, as a pop culture guy, I feel like I should know this. And I'm like movie musical, Chicago. I didn't know this was gonna be, it's funny, as a pop culture guy, I feel like I should know this. And I'm like, oh, no. It's not Renee Zellweger.
Starting point is 00:26:31 Is it Catherine Zeta-Jones? No, it's Queen Latifah. Oh, yes. And here's Queen Latifah. Get a little more active, and you can really reduce your risk of diabetes and other health problems. All right.
Starting point is 00:26:44 Come on, Queen. Whose side are you on, Queen? All right, we have got one more. This guy was a former Broadway actor, then sitcom star, yada, yada, yada. He became a Jenny Craig spokesperson. Oh, this is George Costanza. So this is Jason, Jason, Jason, Jason Alexander? Yes. Ding, ding, ding.? Yes, ding ding ding.
Starting point is 00:27:05 Okay. I love this clip. Take a look, drink it in. I was fat, now I'm thin. Whoa. Oh my God, George, what are you doing, man? Those tear away khaki pants are something I'd like to buy, but the diet, I can leave. I feel like I watch those whenever I see the before and after and the stuff they're wearing,
Starting point is 00:27:37 the choices they're making. I'm always like, it really isn't about the weight, it's really about the choices, the fashion choices. When you ran up there in that shirt and those khakis, somebody should have been like, maybe we put a jacket on them or something. I don't know. Well, by 1991, Jenny Craig is a global phenomenon.
Starting point is 00:27:55 The Craigs are opening four new stores a week, and Jenny Craig is the sixth largest company in America. There are over 500 centers in the US, and over 100 in other countries like Australia, New Zealand, Canada, the UK and Mexico. Annual revenue closes in on $400 million. How else do you think they can grow a company at this point? Going after the kids? Go in public.
Starting point is 00:28:22 Oh yeah, that makes more sense. I'm just saying, when I say go after the kids, I mean like the child weight loss program to be clear. Not murder. I do it. You're like, I'd like to buzz in with child predation. I just want to make it clear. I just want to make it certainly clear. All right.
Starting point is 00:28:37 Ooh, kidnapping. Yeah. No, in 1991, Jenny Craig is listed on the stock market and within one hour, Jenny and Sid are richer by $73 million. So Jenny isn't only wealthier than she could have ever imagined, she's the pinnacle of female success. She has it all. She has a husband, kids, a great figure, a private jet, a Mercedes limo.
Starting point is 00:29:05 By the way, the license plate of that limo is Be Thin 2. Oh no. This is giving pyramids game. It's giving multi-level marketing. It's giving, I could do this, so just go to your downline. Yeah, I don't like it. I don't like when people put stuff like that that's like directly connected to their business as a part of their license plate like I mean it just makes
Starting point is 00:29:30 me want to paintball your car now sometimes early excitement for a company can lead to a correction by 1993 there are almost 800 centers in existence but customers complain that the centers seem understaffed and the quality of service is mediocre. But who cares about the customers? You know, it's much more important that the investors are unhappy. That super high stock price of $21 a share loses a third of its value almost immediately. So Jenny and Sid start hunting for a new CEO, but Sid, who's been the CEO since the company's founding in 1983, will remain as chairman. Their hope is with new management they can reinvent the brand, make more money, and appease the angry investors all at the same time.
Starting point is 00:30:24 So while they try to put out that fire, the Federal Trade Commission enters the picture that same year. Oops! Because now that the company is public, there's more scrutiny. Amisha, remind me what year this is. 1993. Okay, so this is Clinton? This is Clinton. Okay, just curious. But this is like, this is now a big problem.
Starting point is 00:30:45 The FTC has been going after all of the big diet companies for a couple of years. The agency wants the entire weight loss industry to answer for false claims and advertising. So that also includes Jenny Craig's old frenemy Nutrisystem and the new rival Weight Watchers. Yeah, wow. This is funny because it feels like foreshadowing
Starting point is 00:31:08 to what's gonna happen in a few years with the GLP-1 drugs, but... Uh-huh. That's just me just talking, like, don't worry about me. So on top of the sketchy advertising, the FTC is also concerned with the long-term health of dieters. Some dieters are having serious complications
Starting point is 00:31:25 because it turns out if you lose too much weight too quickly, you can get gallbladder disease where you start forming gallbladder stones and might even have to surgically remove the organ. Instant weight loss, sorry. They were like, we did it guys, what are you talking about? This is what you wanted. Five pounds off.
Starting point is 00:31:44 Do you know what the gallbladder weighs? I put my gallbladder in the garbage We did it guys, what are you talking about? This is what you wanted. Five pounds off. Do you know what your gallbladder weighs? I put my gallbladder in the garbage and now I can wear black any day. Like while they're in there, you want to just take the rest of these out? We can get rid of a lot of this weight. Just like we can take out your lungs, all that stuff.
Starting point is 00:31:58 Don't even worry about it, you don't need these. Oh, the amount of people chat GPTing the average weight of a gallbladder is going to skyrocket. Wow. Public service announcement, because we were just talking about it. Now that more and more folks are taking medications like Ozempic and losing weight really quickly, they're also at risk for gallbladder disease. So yeah, the more you know.
Starting point is 00:32:22 Yeah, I was born in 84. And I'm thinking about from then till now, there's always been a something that it's like you're going to lose weight. So if it wasn't Jenny Craig or Weight Watchers, it was the Atkins diet. And then they renamed the Atkins diet something else in like the ATS. Do y'all remember it was the all the Crossfitters were doing it. They called it some Paleo. They were calling it Paleo at the time.
Starting point is 00:32:43 And now like it's and now with theLP-1 drugs, I'm just like, y'all don't see the cycle we're on in terms of the same thing we're trying to do over and over again that doesn't seem to be working. So it's just funny to see the cycle happen. Yeah, it's like fashion. It's like very like, you know, now everybody's gotta have a big dad sneaker
Starting point is 00:33:03 and then it's like, oh, now we want really small sneakers. I don't know. Maybe it's a bad, it's not my best analogy. But it is just like a moving target is more what I'm getting at. Yeah. In the early hours of December 4th, 2024, CEO Brian Thompson stepped out onto the streets of Midtown Manhattan.
Starting point is 00:33:29 This assailant starts firing at him. And the suspect He has been identified as Luigi Nicolass Mangione became one of the most divisive figures in modern criminal history. I was meant to sow terror. He's awoking the people to a true issue. Listen to Law and Crime's Luigi exclusively on Wondery Plus. You can join Wondery Plus in the Wondery app, Spotify, or Apple podcasts.
Starting point is 00:33:51 Behind the closed doors of government offices and military compounds, there are hidden stories and buried secrets from the darkest corners of history. From covert experiments pushing the boundaries of science to operations so secretive they were barely whispered about. Each week, on redacted, declassified mysteries, we pull back the curtain on these hidden histories. 100% true and verifiable stories that expose the shadowy underbelly of power.
Starting point is 00:34:17 Consider Operation Paperclip, where former Nazi scientists were brought to America after World War II, not as prisoners, but as assets to advance U.S. intelligence during the Cold War. These aren't just old conspiracy theories. They're thoroughly investigated accounts that reveal the uncomfortable truths still shaping our world today.
Starting point is 00:34:36 The stories are real. The secrets are shocking. Follow Redacted, declassified mysteries on the Wondery app or wherever you get your podcasts. You can listen to Redacted early and ad free right now on Wondery Plus. So to protect their interests, a bunch of big diet companies, including Jenny Craig and Nutrisystem,
Starting point is 00:34:59 they form a trade association. But in 1994, while still fighting the FTC, Jenny and Sid end up settling another class action lawsuit for false advertising affecting 360,000 customers who used its service between 1987 and 1990. Now, the Craigs don't admit any wrongdoing, classic, but they do pay out $10 million in cash to 22,000 customers and weirdly $36 million in merchandise to anyone else who files a claim. Okay, what, what, what Jenny Craig, so you're telling me, I
Starting point is 00:35:38 sued y'all and it's like, hey, I'm sorry, I got you a three XL t shirt. Yeah. And it says Jenny Craig on it. I'm sorry, I got you a 3XL t-shirt. Yeah. And it says Jenny Craig on it. I'm like, yeah, you're going to promote your business. I just sued you, but I will promote your business. Here's a thermos from the people who lied to you. Also fun fact, most folks don't even cash in their lawsuit merch coupons. People also, they got those merch coupons and were like, absolutely not. They just threw that in the garbage. Wow.
Starting point is 00:36:09 So all things considered, this does not hurt Jenny Craig that much. At least not enough for Jenny and Sid to stop buying planes and race horses with all of their money because, oh yeah, Sid's always dreamed of winning the Kentucky Derby and their first race horse is named Mr. Devious. Cute. Mr. Devious. Like, this is not an admission of guilt, but our horse is named Mr. Devious. So the company's profits, they do continue to soar
Starting point is 00:36:37 with revenues reaching over $400 million in 1994 alone. So she's doing okay. But just when Jenny's on top of the world, her health takes a dive. This is crazy. In April of 1995, Jenny falls asleep on the couch with her chin resting on her chest. And suddenly she's startled by a noise and she jerks her head up. It's the TV. She's safe, but something else is wrong. Her lower jaw hasn't
Starting point is 00:37:06 snapped into place and it's stuck over her upper jaw and she can't open her mouth. She can't talk. She doesn't know what the hell is happening. And so she has to try to pry her teeth apart. So this terrifying event doesn't just leave Jenny an incredible pain, it requires years of rehab and surgery to fix it. So suddenly she's no longer able to be the perfect spokeswoman for her own company, and it ends up being like this weird ominous sign of what's to come. That's awful.
Starting point is 00:37:36 Did they find out what the condition was or what was it? I don't know. I don't like when there's not names for things that terrify me. It's like, I need to know if this can or would happen to me. And now you've just unlocked a new fear in me for it. I'm like, I don't even know what this is. Like if they call the name Bell's palsy, at least if you wake up with half your face paralyzed,
Starting point is 00:37:59 you're like, there's a thing that this is. But you just explained something to me. We don't know what happened. No, this is like a whole, it's like a separate, it's like Jenny Craig syndrome. Like you do this diet and then your lower face tries to eat your upper face. Cause it's hungry. It's hungry. Well, in the aftermath of her alarming jaw problem, Jenny officially steps down as the
Starting point is 00:38:21 spokeswoman for her brand. But besides health issues, they've got a big problem. In 1996, a magic weight loss potion blows up the dieting market and nearly destroys Jenny Craig the company. So it's called FenFen. Yes! Yes! I should have known.
Starting point is 00:38:41 Now, FenFen is actually two drugs prescribed together, one of which suppresses your appetite and causes drowsiness, the other of which is a stimulant and can cause increased heart rate, nervousness, insomnia, and constipation. Fun. I love that one of the drugs is just be like,
Starting point is 00:38:59 you're not hungry, go to sleep. And then the other one's like, but you're gonna be awake. Yeah, exactly. But maybe you should hit that treadmill as hard as you can. Nutrisystem, Jenny Craig's mortal enemy, goes all in on FenFen. And Jenny Craig's customers start to jump ship to try the miracle drug. And after a few months of sinking profits, Jenny Craig succumbs to the pressure and hires a bunch of doctors to sell the pills to its customers.
Starting point is 00:39:28 And all it takes is a 10 minute consultation and folks can leave the weight loss centers with their beach body in a bottle. Misha, this is okay. Again, not a joke. This is literally what Noom is doing with Ozempic and GLP-1 drugs right now. Like, all of a sudden you're getting advertisements from Noom that are like,
Starting point is 00:39:49 hey, also you can get this shot of Wagovi up in you and we'll help with the other. I'm like, if they're joining forces with the pharmaceuticals, it's like the, I don't know, it's always like the sick sign of the apocalypse or whatever, man. Like, it's almost over. You know? like the, I don't know, it's always like the sixth sign of the apocalypse or whatever, man. Like it's almost over. So thanks to FenFen, business for Jenny booms once again, and the entire weight loss industry gets its mojo back, generating close to $2 billion in sales in 1997. Weight Watchers gets on the right side of dieting history, exercising, see what I did there? Unusual
Starting point is 00:40:23 restraint for a big corporation and refusing to prescribe pills. Yeah. Meanwhile, Jenny and Sid's arch nemesis over at Nutrisystem, according to one of its doctors, stops ordering blood tests for customers before giving them FenFen. Not great.
Starting point is 00:40:40 Whoa. They also offer two months of FenFen for free for customers switching from Jenny Craig. Rude. Now, in May of 1997, the years-long battle between Jenny Craig and the Federal Trade Commission culminates in a huge settlement to be more honest. Jenny Craig signs a consent agreement to be more truthful in advertising.
Starting point is 00:41:06 Any claims the company makes needed to be backed by actual customer experience. Can you even? And taglines like, quote, for many dieters, weight loss is temporary, must be included in the ads. Also, prices needed to be more transparent. Like a lot of promotions like, lose all the weight you can for just X amount of dollars have never included all of the extras like the cost of food and now they must.
Starting point is 00:41:33 Wow. Oh, that's right. Cause I remember those ads, like I want to say, say the year again, Misha. 1997. Okay. I was going to say around 2000. I remember hearing those ads and hearing them always saying for X amount, they'd be like for $99, you can lose 99 pounds plus the cost of food. They'd say it like that all of a sudden.
Starting point is 00:41:53 And I'd be like, I remember in my ear being like, what do you mean? How much is the food? Yeah, burying the lead a little bit like and where does the $99 go then? Is it just it's to open more centers? Like... Yeah, I don't know if this is like a fair settlement though. Like you just, you just got to be a little bit more transparent given the fact that they're peddling drugs.
Starting point is 00:42:17 Yeah, you became a big pharma all of a sudden. Like, what are we talking about here? Well, back to FenFen. By 1997, six million people have happily taken it to slim down. Can you guess what happens next? People start dying. Basically, in July of that year, the Mayo Clinic reports that FenFen can destroy your heart valves. Jenny Craig stops prescribing the deadly combo, but Nutrisystem, they lag behind.
Starting point is 00:42:47 Oh, Nutrisystem. But then the FDA outright bans it in September of 1997. So, sorry, FenFen, the party's over. As it should be. But because millions of people have taken FenFen, thousands end up with serious heart and lung damage. It's so sad. It lends itself to the same thing.
Starting point is 00:43:04 Like if you prey on people's desperation to change, like this is what you end up with. You know what I mean? These things, like as soon as they figure out that it makes you lose weight, they start like pushing them so hard and we don't know the like who's going to be the first person that's like, oh my God, my heart valves. Like after all this wagovi. Like I don like, Oh, I'm sorry that it feels like we just turned this into a very special episode
Starting point is 00:43:30 of the big flop. It's like, gather your family for this episode of the big flop. We have something to tell you. Yeah. Can we all sit around? This is a cautionary tale everybody. Yeah. So by the end of the year, sales numbers aren't great. And Jenny Craig's revenues dropped to $365 million with a net income of only about $8 million. So desperate, Sid and Jenny try to launch a new program called ABC, where dieters no
Starting point is 00:43:59 longer count calories but use a food group system. They launched two new products, a line of supplements and Jenny Craig branded exercise equipment. And they know exactly how to market these new offerings. A kick ass new brand ambassador. So can you guess who I'm talking about? Like who would be the boldest choice for a spokesperson in the late 1990s? It was Oprah, right? Wasn't Oprah. Jenny Craig, boldest choice.
Starting point is 00:44:32 She was the center of a very big scandal. Not Monica Lewinsky. Let's play a clip. Okay. It's a great program for someone who not only wants to lose weight, but who's looking to change their life. Oh my god, he is! Oh wow! No!
Starting point is 00:44:50 Whoa! No! No! Why don't I remember this? Oh! Misha, that was such a good setup! I know! That was a good guess too!
Starting point is 00:45:03 That's like... But, I mean, it felt like he drew me into his web. I know. And that was a good guess too. That's like. But it felt like he drew me into his web. And I was just like that could be Monica Lewinsky. He's like, well, since you said it. Wow. What a bold choice. Absolutely.
Starting point is 00:45:17 And I like absolutely love the evolution of Monica Lewinsky, especially to today. But that's a wild usage of her. And like when it's like still very precious in people's minds. Wow, what a choice. But back then it was a big swing and it was ultimately a miss. After a brief rally, the Jenny Craig stock tumbles once again
Starting point is 00:45:38 and Jenny and Sid blame the fail on Monica. But the fact is this has been a long time coming. Okay? But the true rock bottom is still to come. By 2000, the company seems like it's really in trouble. The stock price is practically nothing. It's only worth about $3.75 a share. And the investors are desperate for a buyer to bail them out. So Jenny and Sid, own two-thirds of the company, but they think they might be able to save the brand if they shell out a cool $25 million to buy up the rest of it. Not a bad idea if you've got 25 mil laying around. But it doesn't work out and pretty soon the company is yanked from the stock exchange. So it may be worth a fraction of what it once was, but in 2002, Jenny Craig is sold to an
Starting point is 00:46:30 investment firm for over $100 million and Jenny and Sid get to pocket most of that change. After four decades of managing Jenny Craig, it's finally time for Jenny and Sid to retire, write some memoirs and buy a few more racehorses. So how do we feel about Jenny? Girl boss or evil doer? It's a thin line. Yeah, it's, okay, so if you think about capitalism, and you think about like what every man does, like every man CEO does, like this is not unusual. I mean, of course I think it's disgusting because of like what it does to fat folks
Starting point is 00:47:09 and to body image and all that, but this is not an unusual American story in terms of like people selling snake oil or doing business methods in order to like make themselves very wealthy and then end with a golden parachute. Like, like this, we work, did the same thing. Like, what are we talking about here?
Starting point is 00:47:27 You know? Well, let's do a little, where are they now? Since the early 2000s, Jenny Craig, the company has changed hands a couple of times. Nestle owned it for a hot minute. Then some investment firms, then Walgreens. In 2023, the Jenny Craig Inc. filed for bankruptcy and its assets were sold off to something called Wellful Inc. who owns, wait for it, Nutrisystem. Whoa.
Starting point is 00:47:54 The long con. So, Sid, like I said, he passed away in 2008, but Jenny herself is still alive. At 92 years young, she's not really in the public eye that much, but in a 2019 interview, she still advocated for basically the same stuff as always, portion control and light exercise. The dieting world has had a few major shifts in recent years, first with apps like Noom that market to younger generations
Starting point is 00:48:24 and then some of gluteid medications like Ozempic. There have also been cultural shifts related to body positivity that made marketing weight loss pretty tricky, especially for stalwarts like Weight Watchers. Weight Watchers even rebranded to WW to distance itself from body shaming and to lean into holistic health. But that actually didn't work out for them. People who sought out Weight Watchers, they want to lose weight. So Weight Watchers finally gave in
Starting point is 00:48:54 and started prescribing the newest weight loss drugs as well. Like we've said, with years of case studies ahead of us, we will see how that all pans out. A future flop may haps. Hopefully not for the sake of people who are taking them. So here on The Big Flop, we try to be positive people and end on a high. So are there any silver linings that you can think of that came about from Jenny Craig
Starting point is 00:49:22 and the Jenny Craig company. What? Silver linings. What? We try. We got to try. What? I don't know. Maybe we've, I think we've learned something since then.
Starting point is 00:49:33 Maybe. Emmy, help me. I don't know. I, uh, I'm happy that Jason Alexander, uh, is here. I'm happy that Jason Alexander is here. I'm happy that Jason Alexander is here. I don't know, maybe we've, I think we've learned something since then, maybe. Emmy, help me, I don't know. I, I'm happy that Jason Alexander He got paid.
Starting point is 00:49:50 got a little extra cash on the side of Seinfeld because that show may not cover all the bills. No. For me, the only silver lining like I think is that Weight Watchers didn't make every despicable choice along the way. They didn't get into FenFen. Yeah, there's something about Weight Watchers, even though I know a lot of people that had a lot of damage from Weight Watchers, hearing that there's
Starting point is 00:50:22 certain things that they were just like, we're not going to do that, tells me that there was somebody saying like, yeah, maybe you can stand to lose some weight, or yeah, we want y'all to lose weight, but we don't want you to hurt yourselves, which is, I'm like, that is remarkably restrained for a business to do. And for such a business in such a toxic environment.
Starting point is 00:50:42 Yeah. Yeah, the bar is so low. The bar is low. You're right. Yeah. Yeah. Well, now that you both know about Jenny Craig, would you consider this a baby flop, a big flop, or a mega flop?
Starting point is 00:50:53 This seems like a century spanning mega flop. Megaflopolis. Like, get it? Yeah. Like, yeah. Especially because it's a big flop in part of an even bigger industry. Like I think this is what I'd consider this a mega flop, especially when you think about how much we were hearing about Jenny Craig in the nineties and two thousands to say like now we don't hear about them at all, but now it's morphed into something different.
Starting point is 00:51:19 I'm like, this is a mega flop that we're probably going to see continue to flop in the future. So like a flop with ritual in flop, in flopception. I don't know. Russian nesting flop. Yes. Russian nesting flop. Even better. Yes.
Starting point is 00:51:32 Well, thank you so much to our amazing guests, Ronald Young Jr. and Emmy Blotnick for joining us here on The Big Flop. And of course, thanks to all of you for listening and watching. If you're enjoying the show, please leave us a rating and review or subscribe. We'll be back next week with another flop. New York City is known for many things. Broadway, bagels, Central Park. But what about con men?
Starting point is 00:51:58 We're talking about how one of the greatest cities in the world is also home to one of the greatest con men, Bernie Madoff. Bye. Bye. Oh, bye. See you. He's just not talking to us.
Starting point is 00:52:14 He's looking to the audience. If you like the big flop, you can listen early and ad free on Wondery Plus. Join Wondery Plus in the Wondery app or on Apple podcasts. Prime members can listen ad free on Amazon Music. Before you go, tell us about yourself by filling out a short survey at wondery.com slash survey. The Big Flop is a production of Wondery and At Will Media, hosted by Misha Brown, produced by Sequoia Thomas, Harry Huggins, and Tina Turner. Written by Anna Rubinova and Luke Burns. Engineered by Zach Rapone, with support from Andrew Holzberger. The video podcast is edited by Olivia Vessel.
Starting point is 00:53:09 Managing producer is Molly Getman. Executive producers are Kate Walsh and Will Molnati for At Will Media. Legal support by Carolyn Levin of Miller, Korsanich, Summers, and Raymond. Senior producers for Wondery are Adam Azarath, Matt Beagle, and Jennifer Klein Walker. Managing producer is Sarah Mathis, and Raymond. Senior producers for Wondery are Adam Azarath, Matt Beagle, and Jennifer Klein Walker. Managing producer is Sarah Mathis and the senior managing
Starting point is 00:53:30 producer is Callum Plews. Music supervisor is Scott Velasquez for Freesong Sync. Theme song is Sinking Ship by Kick. Executive producers are Lizzie Bassett, Dave Easton, and Marshall Louie for Wondering. Music Last year, long crime brought you the trial that captivated the nation. She's accused of hitting her boyfriend, Boston police officer John O'Keefe with her car. Karen Reed is arrested and charged with second degree murder. The six week trial resulted in anything but resolution. We continue to find ourselves at an impasse. I'm declaring a mistrial in this case. But now the case is back in the spotlight.
Starting point is 00:54:29 And one question still lingers. Did Karen Reed kill John O'Keefe? The evidence is overwhelming that Karen Reed is innocent. How does it feel to be a cop killer, Karen? I'm Kristin Thorn, investigative reporter with Law & Crime and host of the podcast, Karen, The Retrial. This isn't just a retrial, it's a second chance at the truth.
Starting point is 00:54:54 Listen to episodes of Karen, The Retrial, exclusively and ad-free on Wondery+.

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