Ozempic has food brands like Nestlé and Krispy Kreme in panic
Companies and analysts have expressed concerns about how the weight loss drug could eat in profits.
Ozempic, Wegovy and Mounjaro are three of the hottest fashionable words in 2023, making the headlines for Spectacular weight loss results , as well as Painful undesirable events . Aside from the gastrointestinal problems associated with these drugs, drugs have had other surprising side effects on the food industry. Some major brands feel the impact of peptide-1 agonists of the glucagon type (GLP-1) such as ozempic, fearing that the decrease in patients' appetites could potentially have an impact on profits. Read the rest to find out how brands like Nestlé and Krispy Kreme can be affected.
In relation: Buyers turn away from Walmart - and Ozempic can be blamed .
Walmart launched the conversation last month.
At the beginning of October, CEO of Walmart John Furner caused agitation when he said to Bloomberg that weight loss and diabetes drugs could be reduce sales food in its stores.
"We certainly see a slight change compared to the total population, we see a slight withdrawal in the overall basket," said Furner. "Just fewer units, slightly fewer calories."
The CEO quoted recent data collected on American customers, by comparing the purchasing habits of those under drugs like Ozempic to the habits of those who are not. However, Furner said that it was still too early to draw concrete conclusions on the relationship between appetite suppressors and purchases.
Now, well -known brands have concerns.
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Nestlé develops "companion products" due to the rise in ozempic use.
Forbes reported last month that Nestlé is stop For the impact of the abolished appetites of the Americans. AE0FCC31AE342FD3A1346EBB1F342FCB
"The recent interest in a new class of drugs called GLP-1 agonists, said the public's desire to combat obesity rates in the world. Mark Schneider said for a October 19 profit call , noting that new therapies are not a permanent solution or replacement for balanced diet and exercise.
To remedy this, Schneider said that Nestlé is working on "a number of companion products" for patients taking these drugs. The objective, he explained, would reduce the risk of malnutrition and loss of lean muscle, as well as limiting the "weight rebound" once patients stop taking GLP-1.
"These innovations are correct in our wheelhouse, where we can bring our in -depth understanding of nutritional science and appropriate supplementation to the table," said Schneider, adding that the company does not provide a large part of the company to affect . As Forbes Stresses that two of Nestlé's largest companies are coffee and pet food, both that patients in Ozempic are still buying.
In response to Better life , a spokesperson for Nestlé said that the company had no additional comments.
In relation: The ozempic patient reveals "a new" atrocious "side effect .
Analysts degraded Krispy Kreme's actions on Monday.
Krispy Kreme could also feel the ramifications of these drugs - and analysts raise concerns.
Truist Financial Services Company has reduced his perspectives For Krispy Kreme earlier this week, downgrading the stock of a purchase to a socket. As an analyst Bill Chappell said Forbes , this note is in response to the popularity of drugs like Ozempic and Wegovy, which, according to him, has an impact on all the packaged food snacks.
Trist plans that the stock, as well as similar stocks, "will be blocked in a detention scheme at best", adding that the model is similar in the mid -2000s when the low -carbohydrate diets were fashionable. While Chappell also said Forbes That we do not yet know how much these drugs will have an impact on American food consumption, JPMorgan analysts have said that food producers are the "greatest losers" in the era of weight loss drugs.
Better life Contacted Krispy Kreme to comment and update history with his answer.
Other analysts and executives are not as worried.
All these fears aside, food companies may not have serious problems, according to THE The Wall Street newspaper . The point of sale has indicated that the prevalence of weight loss drugs has given way to " wild scenarios mentioned by analysts, "like junk food companies selling carrot sticks or airlines using less fuel due to the collective weight loss of passengers.
The point of sale emphasizes that if the Americans can benefit from the loss of books, a "thinner" America is still far away. In the United States, these drug therapies remain expensive and cause delicate side effects, which is aggravated by the fact that Americans do not have the best eating habits.
There is also little evidence that ozempic use currently achieves sales and profits for large food and drinks companies, the Wsj Reported, noting that Pepsico said he had not seen any impact, and Abbott Laboratories, which manufactures a glucose monitoring system for diabetic patients, said high benefits and sales.
"I think the concerns are exaggerated," said Abbott CEO Robert Ford said when calling the company's October, by Wsj . "I think that very early on these initial reflections on the future are generally more affected by emotions than facts and data."
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