Ozempic and Wegovy users are eating less, but food giant Nestlé may have figured out a way to cash in on the growing demand for weight loss drugs. The company announced Tuesday that it is launching a brand of pre-portioned, high-protein frozen meals specifically for people taking GLP-1 agonists, which suppress appetite.
Nestlé, which makes frozen food and snack brands such as DiGiorno Pizza and KitKat, is rolling out its Vital Pursuit line of weight loss drug-friendly frozen pizzas and pastas this year. The meal retails for $4.99, which is $1 more than Digornio’s personal pepperoni pizza at Target.
“We leverage our deep understanding of consumers and nutritional science to stay ahead of trends shaping consumer behavior and innovate across our portfolio to deliver products people love,” said Steve Presley, CEO of Nestlé North America. he said in a press release.
Since Novo Nordisk introduced Ozempic in 2017, the excitement surrounding the drug for weight loss and diabetes management has reached new heights. Ozempic will account for 41% of Novo Nordisk’s 2023 sales, worth about $14 billion. The company reports 40 million users, and weight-loss specialist Wegovy and rival Eli Lilly’s Zepbound have similarly led to shortages of the drug. Hims & Hers Health Inc. is capitalizing on the trend, announcing Monday that it will offer a combined version of its GLP-1 drug for $199 a month, a fraction of Ozempic’s $1,350 price.
In October, Nestlé announced that it would be reducing the nutritional value of people taking GLP-1, especially since Ozempic users reported an aversion to foods rich in fat and protein, as well as a decrease in lean muscle strength. The company announced that it is developing a “companion product” to improve its performance. Nestlé global CEO Mark Schneider said in February that Ozempic was likely to drive sales of the company’s nutritional products.
“When you eat less, you need some vitamins, minerals and supplements,” Schneider told Bloomberg. “We want to make sure weight loss is supported. We want to make sure we limit the loss of lean muscle mass.”
Confront Ozempic Anxiety
Before Nestlé pivoted to foods that are better suited to weight-loss drugs, a wave of fear among investors sent Nestlé’s stock price into turmoil, sending it to a two-year low in October. The stock decline came days after John Furner, CEO of Walmart’s U.S. operations, said the big box retailer was feeling the shift due to increased demand for weight-loss drugs.
“If you compare it to the overall population, we’re certainly seeing a slight change. We’re seeing a bit of a rebound across the basket,” Furner told Bloomberg. “It’s just fewer units and slightly fewer calories.”
A February report from Morgan Stanley, using data from market research firm Numerator, corroborated Farner’s comments, finding that Ozempic users reduced their spending at grocery stores by up to 9%, and that snacks and confectionery reduced spending by up to 9%. Sales of vegetables and proteins were found to be the hardest hit, with sales increasing. Chocolate maker Lindt & Spruengli, beer giant Anheuser-Busch InBev, Unilever and yogurt maker Danone all saw their stock prices plummet in the wake of Furner’s comments.
Nestlé is not the first company to make adjustments to respond to a changing market. WW International (formerly Weight Watchers) is introducing new meal plans for people taking weight loss drugs, and upscale gyms are launching clinics with access to medical professionals who can prescribe the drugs. In April, struggling vitamin and supplement chain GNC added a section to its 2,300 stores specifically for weight-loss drug users, stocked shelves with protein shakes, and trained staff on drug side effects such as gastrointestinal disorders. The government announced plans to promote the use of certain drugs. supplement.
“You’re dealing with the side effects of GLP-1, right? So?” the company advertises in a new store display. “I’ll help you.”
