- The rise of weight-loss drugs means consumers’ nutritional needs are “changing,” Nestle CEO Mark Schneider told CNBC’s Silvia Amaro.
- Nestle is looking to capitalise on the popularity of GLP-1 drugs with an “ambitious goal to promote healthier products”, the CEO said.
- The Swiss food and beverage giant is set to launch “Vital Pursuit”, a frozen meal targeted at users of GLP-1 weight loss drugs, later this year.
The rapid growth of weight loss drugs means consumers’ nutritional needs are “shifting,” creating new opportunities. Nestle CEO Mark Schneider told CNBC that this is a big win for food companies.
Investors were initially concerned about the popularity of GLP-1 drugs such as Wegobee and Ozempic because the assumption was that people taking these drugs would eat less, Schneider told CNBC’s Silvia Amaro.
But that view has since changed, he says: “I think what’s become clear since then is that nutritional needs don’t go away, they just change. So before, during and after GLP-1 therapy, consumers still have nutritional needs, but they may be different to someone not on a weight loss regimen.”
Consumers taking weight-loss drugs simply have different nutritional needs, Schneider said. Users of GLP-1 drugs need to place more emphasis on protein intake to maintain muscle mass and get enough vitamins and micronutrients, he said.
This is an opportunity for Nestle to bring science to the table and “work on what we call companion products that actually address specific consumer needs during treatment,” Schneider said.
An ‘interesting addition’ for the food industry
Nestle is looking to capitalise on the popularity of GLP-1 drugs with an “ambitious goal to promote healthier products”, the CEO said.
GLP-1 drugs “would definitely be an interesting addition to all the other needs that we’re trying to fill in the food industry,” Schneider told CNBC, adding that even as drugs become more important, they won’t be the sole focus for food and beverage companies.
GLP-1 users may look for products that align with their diet and the effects of their medication, such as feeling fuller faster than before, but not all consumers have the same goals.
“Remember, there are plenty of consumers who are not on a GLP-1 diet, and there are plenty of contexts in which snacks and chocolate products still garner great interest, so it’s not going away,” Schneider explained.
Also, all consumers are at different life stages, from young children to elderly people, and therefore have different nutritional requirements that are met by different products, he added.
Frozen Foods for GLP-1 Users
The long-term effects of GLP-1 weight-loss treatments are still unknown, and concerns about side effects remain, but Schneider said it’s important to address these as a “larger consumer trend.”
The Swiss food and beverage giant announced earlier this month that it was launching “Vital Pursuit”, a range of frozen meals aimed at people taking GLP-1 drugs. Twelve products, including pasta, pizza and sandwich melts, will hit supermarkets later this year. Every meal will contain at least one essential nutrient, such as calcium or iron.
Schneider told CNBC that foods not traditionally associated with weight loss, such as pizza, will be included to offer variety to consumers.
“But most importantly, all of these foods are going to be limited in intake,” he said, “and micronutrient status is also very important, so we’re adding in vitamins to make sure all the basic needs of the consumer are met.”
Nestle is also planning other “companion products” for consumers taking weight-loss drugs, not only in the United States, where the Vital Pursuit product will be launched, but also in other regions, Schneider said.
“For consumers who aren’t on GLP-1 therapy but are on other types of weight-loss therapy, some of these products will make a lot of sense because the same basic principles apply: you want to make sure you’re losing fat, you want to make sure you’re not losing lean muscle mass, and you want to make sure you’re not developing vitamin deficiencies,” Schneider said.
