(Bloomberg) — The so-called Ozempic revolution has wiped billions of dollars off the market capitalization of food and beverage companies, but the new weight-loss drug is giving a boost to at least one product line that has historically seen sluggish demand: yogurt.
France’s Danone says demand for high-protein, low-calorie yogurt is surging in the United States, driven in part by the popularity of new anti-obesity drugs, Novo Nordisk’s Wegobee and Eli Lilly’s Zepbound, which are closely related to the Danish company’s diabetes drug Ozempic.
“We have a very large selection of protein yogurts that sell out quickly,” Deputy Chief Executive Officer for Finance Jurgen Esser said in an interview. “We think these products will appeal to consumers who are undergoing GLP-1 therapy, but also those who simply want to manage their weight and health.”
Danone isn’t explicitly marketing to GLP-1 users, at least for now. But Swiss food giant Nestle SA is going a step further: Next week, the company will launch a new Web site that will direct consumers to products designed specifically for slimming injection recipients, from protein-rich meals to vitamins to combat hair loss.
About 30 million Americans take GLP-1 drugs, and the changes in consumption are spilling over into retail, travel and other sectors. By suppressing appetite, Eli Lilly and Novo Nordisk’s drugs can burn fat and improve heart health. But eating less can lead to nutritional deficiencies, and patients find they are losing muscle along with fat, all while battling side effects like nausea and hair loss.
Food companies are betting that patients looking for nutritious, non-filling meals will turn to new packaged foods, vitamins and supplements to help offset some of the shunning of traditional profit-makers like ice cream and chocolate bars.
Nestle said it will begin selling its Vital Pursuit food line this year, which includes 12 high-protein, high-fiber frozen meals, and will sell Nature’s Bounty-brand hair-growth supplements on its new website, which it says will “supplement your weight-loss journey, even after you’ve stopped losing weight.”
The maker of KitKat will also sell strawberry lemonade-flavoured electrolyte tablets for people looking to increase their physical activity, collagen peptides to improve skin elasticity and prevent the appearance of dimples known as “Ozempic face”, as well as multivitamin and fibre supplements.
Growth trends
Other food companies are following suit. Daily Harvest is attracting users of GLP-1 drugs like Wee Gobee and Zepbound with its broccoli-and-white-bean soup and dragon fruit-and-lychee smoothie. Conagra Brands, maker of Chef Boyardee canned pasta, said at a February conference that it is increasing sales of products that cater to people taking weight-loss drugs. Conagra said its “wholesome frozen meals” have grown 8 percent among GLP-1 users, and that its protein-packed meat snacks and low-calorie, high-fiber popcorn also fit well with users’ needs.
Across its portfolio, Nestle has the brands and expertise to support customers’ changing needs, such as “maintaining muscle mass, managing digestive problems and ensuring adequate daily intake of micronutrients,” said Anna Mohr, chief executive officer of Nestle Health Science. Healthcare company Abbott also makes nutritional shakes targeted at consumers who use weight-loss drugs.
–With assistance from Madison Muller, Jacqueline Simmons and Sam Hall.
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