Nestlé is launching a range of food products suitable for people using weight-loss drugs, aiming to capitalize on a market expected to reach $30 billion over the next six years.
Under its new Vital Pursuit brand, the global food giant plans to launch 12 products ranging from frozen protein pastas to melty sandwiches to pizzas, all made with higher amounts of protein and essential nutrients like iron, vitamin A and potassium. They are also “tailored based on the appetite of the weight-loss drug user,” the company said.
This is the first time the company, known for brands like DiGiorno pizza and Nesquik, has created a food brand specifically aimed at glucagon-like peptide 1 (GLP-1) users.
GLP-1 agonists are a class of type 2 diabetes medications that improve blood sugar control but may also cause weight loss. Semaglutide, which is the active ingredient in Novo Nordisk’s Wegovy and Ozempic, as well as tirzepatide, which is the active ingredient in Eli Lily’s Mounjaro and Zepbound, are considered GLP-1 drugs.
They have gained popularity in recent years as people tout their weight loss effects. In turn, food industry executives are noticing that some shoppers’ habits are changing.
For example, Walmart U.S. CEO John Furner said during an earnings conference call in November that while it was still too early to tell how it would affect customers and the company, The company had noted “some changes in categories”.
Prior to that, Furner acknowledged in an interview with Bloomberg that the company was seeing “a slight decline in the overall basket.”
“Just fewer units, a few fewer calories,” he said.
At the same time, Nestlé sees an opportunity to be at the forefront of what it sees as a “growing market opportunity.”
Earlier this month, Novo Nordisk told FOX Business that at least 25,000 Americans begin treatment with Wegovy each week and that number is growing.
The Danish pharmaceutical giant, which has increased production capacity to meet demand, said there are currently “four times” the number of U.S. patients starting treatment compared to December 2023.
By 2023, one in 60 adults will be prescribed a GLP-1 drug, according to the American Pharmacists Association.
By 2030, the number of GLP-1 users in the United States could reach 30 million, or about 9% of the total population, according to JPMorgan. The market is expected to surpass $100 billion by the same year, “driven equally by diabetes and obesity use,” the company noted.
“As the use of medications to promote weight loss continues to increase, we see an opportunity to serve these consumers,” said Steve Presley, CEO of Nestlé North America. “We leverage our deep understanding of consumers and nutritional science to stay ahead of the trends that shape consumer behaviors, and we innovate across our portfolio to deliver products that people will love. »
Nestle said it plans to sell the products for less than $5, but prices may vary by retailer.
They will arrive in stores in the fourth quarter of 2024.
News Source : nypost.com
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