How Food Companies Are Capitalizing on Weight-Loss Drugs

A New Opportunity

This year saw the rise of powerful new weight loss drugs such as Novo Nordisk’s (NVO) Ozempic and Wegovy. But food companies are seeing an opportunity.

These new drugs work by suppressing appetites, which has left many investors bearish on food suppliers as more Americans begin taking these drugs. However, savvy food companies have begun marketing their products as either an alternative to weight-loss drugs, or as a supplement to be consumed alongside them.

Food Companies Capitalize

These new drugs cause people to lose muscle mass, not just fat. Now, Nestlé (NSRGY) has announced products designed to combat that exact issue, which could launch as soon as next year. General Mills (GIS) and Abbott Laboratories (ABT), maker of Ensure protein shakes, have announced similar plans.

Prepared for Change

Food suppliers are confident in their ability to adapt to consumer trends, and with the drugs still in their infancy, there’s plenty of time to adjust or pivot.

The extent to which these drugs will be used long-term, and how they will affect the food industry, remains to be seen.

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