As new diabetes and weight-loss drugs help patients curb appetite and shed pounds, food manufacturers are looking for new ways to keep their bottom lines healthy.
Millions of Americans have started taking the expensive new drugs, especially Mounjaro, Ozempic, Wegovy and Zepbound, and millions more are expected to take them in the coming years. As such, food manufacturers are bracing for lower sales. In a report earlier this month, Morgan Stanley tobacco and packaged foods analyst Pamela Kaufman said the drugs are expected to affect both the amount and types of foods people eat, taking some of the profits out of the tobacco industry. food and drinks.
“In surveys by Morgan Stanley Research, people taking weight-loss drugs were found to eat less food overall, with half reducing their consumption of sugary drinks, alcohol, confectionery and salty foods, and nearly a quarter stopping altogether alcohol,” Kaufman said. . Restaurants that sell unhealthy food, especially chains, may face long-term business risks, the report noted. About 75 percent of respondents taking weight-loss drugs said they had reduced going to pizza and fast-food restaurants.
Some food manufacturers are not taking the threat lightly. On Tuesday, the massive multinational food and beverage conglomerate Nestl announced a new line of frozen meals, called Vital Pursuit, aimed directly at people taking GLP-1 weight loss drugs (Wegovy and Ozempic). Nestle maker of DiGiorno’s frozen pizzas and Stouffer’s frozen pizzas has helped the new product line include frozen pizzas, sandwich melts, grain bowls and pastas that are “portion-aligned to the appetites of drug users” weight loss”. Alternatively, the frozen fare is said to contain fiber, “essential nutrients” and high protein, nutritional properties not specific to people taking GLP-1 drugs.
“As the use of medications to support weight loss continues to grow, we see an opportunity to serve those consumers,” said Steve Presley, CEO of Nestl North America, in announcing the product line. “Vital Pursuit offers accessible, great-tasting food options that support the needs of consumers in this emerging category.”
NestlĂ© is not alone. Late last year, WeightWatchers began offering a membership program for people taking GLP-1 drugs. In January, meal delivery service Daily Harvest announced the GLP-1 Companion Food Collection. And last month, GNC announced a “GLP-1 support program” for people who use the drug, which includes a collection of various supplements, exercise and counseling.
Companies seem to be heeding the advice of analysts. The Morgan Stanley report noted that food manufacturers can adapt to changing people’s diets by “raising prices, offering ‘better for you’ or weight management products, or catering to changing trends with options vegan or low sugar”. Kaufman noted that some companies are already adapting by selling smaller packages and portions.
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Image Source : arstechnica.com