Little Red Riding Hood - Why are wolves always the baddies?

Why are wolves always the villains in old European fairy tales? And is it OK to stereotype animals, or people for that matter? To investigate, Molly, Carl and Eleanor head off on a fairytale research trip to the snowy forests of Germany. But their adventure takes a spooky turn when they get lost on the way back to their hotel in the woods, with just one little torch to guide them...