Opportunity, not a threat: Nestlé and Danone respond to growing GLP-1 demand

10 Apr 2024 --- Despite fears that GLP-1 weight loss medicine might lead not only to decreasing appetites and weight sizes but also declining profits for food industry players, giants Nestlé and Danone are not worried. Instead, the companies say they will leverage the growing demand for weight-loss journey products.

“Our CEO Mark Schneider has mentioned that while patients on GLP-1 drugs for diabetes or weight loss may eat less, their nutritional needs do not change,” a Nestlé spokesperson tells Food Ingredients First. “As a consequence, they may face a challenge in meeting their micronutrient requirements and in conserving lean muscle mass.”

“Looking at our Nestlé Health Science portfolio, for example, we have a variety of high protein products to help patients on GLP-1 drugs maintain their muscle mass. And we offer a broad portfolio of vitamins, minerals and supplements that can help provide the recommended daily intake of nutrients.”

Danone CEO Antoine de Saint-Affrique comments: “We see ourselves as complementary to GLP-1s. We provide protein that you cannot find naturally. You need to have those proteins, and if you are under the regime, you will miss those. We can bring them, and we contribute to your gut health.”

Growing weight-loss market
Earlier this year, Lars Fruergaard Jørgensen, the CEO of Novo Nordisk, GLP-1 weight-loss manufacturer Ozempic, revealed that “A couple of CEOs from, say, food companies have been calling me.”

GLP-1 users consume fewer calories, but experts argue it does not impact overall food demand.“They are scared about it,” Jørgensen continued, referring to the supposed concern that the expanding popularity and availability of GLP-1 medication might result in the decreased consumption of some food product categories, such as high-fat and high-sugar content ultra-processed foods (UPFs).

Nestlé and Danone, in particular, are rejecting such claims, instead boasting their “healthy” food ranges for consumers on pursuing weight loss, whether through GLP-1 medication or only through dietary changes.

Last year, Nestlé announced that it is developing products designed to be complementary to GLP-1 weight-loss treatment, while affirming that the introduction of the new medication has not had an effect on sales.

The Nestlé spokesperson outlines: “Our brands such as Vital Proteins, Orgain and Boost can help provide high-quality protein for people with decreased appetites and those on low-calorie diets.”

“For people who are not getting the right levels of vitamins, minerals and supplements from their meals, brands including Pure, Garden of Life and Nature’s Bounty offer a wide variety of choices.”

CEO Schneider asserts: “Value is generated by improving the consumer experience – delivering against nutritional, taste and convenience needs as well as driving premiumization.”

“In addition, our category mix has evolved. Nestlé’s revenue from coffee, petcare and Nestlé Health Science products has grown from one-third to more than 50% over the last decade. Our revenue share of premium products has risen from 11% to 33% in the same period.”

Jon Cox, head of European consumer equities, provides a similar response to F&B so-called business's worries about the effects of weight-loss drugs on the industry. “GLP-1 users may consume fewer calories, but we do not see a material impact on overall food demand, while we see opportunities for food makers of protein products and diet supplements.”

“While consumers may shun bad-for-you UPFs, we believe European companies generally have healthier portfolios compared to some rivals,” he argues.

By Milana Nikolova

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