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The meteoric rise of weight reduction drugs means consumers’ dietary needs are “shifting” which provides latest opportunities for food corporations, Nestle CEO Mark Schneider told CNBC.
Investors were initially concerned concerning the popularity of GLP-1 drugs corresponding to Wegovy and Ozempic because it was assumed that individuals on the drugs would devour less food, Schneider told CNBC’s Silvia Amaro.
But that perspective has since modified, he said. “I believe what since has emerged is that dietary needs don’t go away. They’re just shifting. So, you recognize before, during, after GLP-1 therapy — consumers still have dietary needs, but they could be different from someone who is just not on a weight reduction regimen.”
In keeping with Schneider, consumers who’re on weight reduction medication simply have different dietary needs. Users of the GLP-1 drugs have to focus more on protein intake to retain muscle mass and ensuring enough vitamins and micronutrients are consumed, he said.
This serves as a chance for Nestle to bring science to the table after which “work on what we call companion products, products that basically then address a few of the specific consumer needs during that treatment,” Schneider said.
‘An interesting addition’ to the food industry
Nestle is trying to capitalize on the recognition of the GLP-1 drugs with its “ambitious goal to push the healthier products,” the CEO said.
The GLP-1 drugs will “definitely be an interesting addition to all the opposite needs that we’re trying to satisfy within the food industry,” Schneider told CNBC, adding that at the same time as the importance of the drugs grows, they may not change into the only real focus for food and drinks corporations.
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While GLP-1 users may look out for products which might be tailored to their weight loss program and impacts of the medication corresponding to feeling satiety prior to before, not all consumers can have the identical goals.
“Remember, there’s going to be plenty of consumers on the market that should not on an GLP-1 weight loss program. And there’s numerous situations where a snack and a chocolate product should be of plenty of interest. So it doesn’t go away,” Schneider explained.
Consumers may even all be at different life stages, from infancy to the elderly, and subsequently have different dietary requirement which might be met with different products, he added.
Frozen food range for GLP-1 users
Though long-term effects of GLP-1 weight reduction treatments are still uncertain and concerns about uncomfortable side effects persist, Schneider said it is necessary to reply to them as a “major consumer trend.”
The Swiss food and beverage giant announced earlier this month that it was launching Vital Pursuit, a frozen food range that targets those taking GLP-1 drugs. Twelve products are set to hit supermarkets later this 12 months, including pastas, pizzas, and sandwich melts. All meals will include a minimum of one essential nutrient corresponding to calcium or iron.
Foods which might be traditionally not linked to weight reduction like Pizza will probably be included to offer consumers with variety, Schneider told CNBC.
“But an important part is all of them are going to be portion controlled,” he said. “Then the micronutrient status may be very essential. So we’re adding vitamins to make sure that all of the central needs of those consumers are met.”
Nestle can be planning other “companion offerings” for consumers taking weight reduction drugs, each within the U.S., where Vital Pursuit products will launch, and elsewhere, Schneider said.
“A few of these products may even make plenty of sense to consumers, if they are not on a GLP-1 treatment, but one other kind of weight reduction treatment, because the identical fundamentals apply, and that’s you need to make sure that you are losing fat and never lean muscle mass and you need to make sure that you do not develop any vitamin deficiencies,” Schneider said.
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