Weight reduction drugs have been within the highlight. But they’re only one aspect of a growing concentrate on health — on the a part of each consumers and governments. The Covid-19 pandemic was a giant factor behind the rising concentrate on weight and its implications for health, Morgan Stanley noted. “Thus health (or wellness) has grow to be more of a driver of weight reduction than the will to adapt to a certain appearance; we note that concurrently the rapid rise in weight reduction drug adoption, there has also been a powerful movement (supported by social media) to destigmatise obesity and encourage body confidence,” it wrote. Wellness goes beyond weight reduction — it also encompasses fitness, nutrition, appearance, sleep and mindfulness, the bank wrote, citing a McKinsey survey, which showed showed that millennials are focusing more on those aspects. The bank noted that the rise in health-care spending — each in absolute terms and as a percentage of gross domestic product — has increased the concentrate on implementing policies that address those issues. “Even before GLP-1s hit the headlines, developed markets policy was shifting to a more interventionist approach to consumer health,” Morgan Stanley wrote in a Nov. 1 report, referring to glucagon-like peptide-1 drugs originally developed for diabetes but additionally popularly used for weight reduction. “The fee of treating obesity-related diseases, and the lack of employee productivity, makes continued intervention likely, in our view,” the bank added. Such drugs are also affecting dietary habits: Walmart said last month it’s seeing a “slight change” in the way in which people shop for food , which could also be due partly to customers buying less while using appetite-suppressing medications like diabetes drugs Mounjaro and Wegovy. “While the perception could also be that the US has been leading the way in which within the adoption of weight reduction drugs, Europe has grow to be relatively more interventionist from a policy perspective, in the shape of increased taxes/restrictions on products which are deemed unhealthy, and techniques designed to push the broader population towards higher health,” Morgan Stanley said. CNBC Pro takes a take a look at the stocks Morgan Stanley says can be affected by those trends — each positively and negatively. Beneficiaries Morgan Stanley said “functional” foods, waters, skincare and cosmetics, and consumer health must be well positioned. The wellness trend must be positive for corporations that concentrate on nutrient-dense foods, reminiscent of protein powders and other protein-enhanced foods like premium yogurts, the bank said. French food producer Danone is well positioned for the “global shift to wellness,” the bank said, adding that each one three divisions in the corporate may gain advantage: essential dairy and plant-based products; water products; and specialized nutrition. Morgan Stanley upgraded its rating for Danone to “chubby.” It also reiterated its chubby rating on Glanbia — a serious manufacturer of protein powders in the US — in addition to Nestle , which it said must be “broadly neutral” to the GLP-1 debate. However the bank said Nestle has the potential to capture upside within the wellness trend through its nutrition division, which produces protein powders and supplements. The bank said the “personal care” category should proceed to learn, because of the “increased association of looking good with feeling good,” said the bank. “We predict the “medicalisation” of skincare will proceed, with increased uptake of energetic/dermatological products, including SPF, as skin health importance grows,” it added. It listed L’Oreal , Beiersdorf and Intercos as key beneficiaries. “We note also that buyers spending less on grocery can have more disposable income, mitigating near-term concerns that some investors have around spending on the more discretionary beauty category,” said Morgan Stanley. In danger Alcoholic beverages and soft drinks look like amongst categories most affected by the GLP-1 trend and the concentrate on wellness, Morgan Stanley said. That is because medical studies have shown that GLP-1 drugs might be effective in reducing alcohol consumption and relapse-drinking behaviors, the bank said. Alcoholic beverage corporations in its list of stocks with an underweight rating include Diageo and Remy Cointreau . Beers must be the least affected, Morgan Stanley said. “GLP-1 uptake currently skews heavily towards women, which suggests that beer consumption, which skews male, must be less impacted, a minimum of within the short to medium term.” Brewer Anheuser-Busch Inbev is the most effective positioned, it said. As for soft drinks, there’s been a “notable shift” toward low- or no-calorie drinks, which should “soften any potential impact,” the bank said. British soft drinks producer Britvic must be higher positioned than Fever-Tree, which produces mixers and might be affected by weakness within the spirits category. — CNBC’s Michael Bloom contributed to this report.
Nashville’s heath tech startup scene is booming. Here’s why.
Tourists visit the bars and country music venues within the Lower Broadway entertainment district in Nashville, Tennessee, Sept. 1, 2019.Robert...
