Nestle is venturing into the lucrative weight loss drug market in a strategic and forward-thinking move. This decision is a response to consumers’ evolving nutritional demands. Mark Schneider, the CEO of Nestle, expressed his optimism on Thursday, dispelling earlier concerns that popular weight loss drugs like Ozempic, Wegovy, and Mounjaro could potentially disrupt the food industry in the near future.
Initially, the food industry and investors were apprehensive about the growing popularity of GLP-1 drugs, fearing a decrease in food consumption and subsequent profit loss. However, Schneider now sees this as a significant opportunity. He explains that customers’ nutritional needs for these drugs are still growing but shifting, presenting a new market for Nestle.
Schneider said, “Consumers still have nutritional needs, but they may be different from someone who is not on a weight loss regimen.” His statement notes that people on GLP-1 drugs put themselves in a position where they need to take extra measures to ensure they are consuming the proper amount of nutrients and vitamins from the food they consume. Schneider’s sentiment pertains to GLP-1 users absorbing efficient amounts of protein to retain proper muscle mass.
Contrary to initial concerns, Schneider is confident that Nestle can capitalize on the emerging market of GLP-1 drug users. He revealed that Nestle has robust plans to efficiently respond to this “major consumer trend,” indicating a strategic focus on this segment.
According to Schneider, Nestle is excited to begin pushing healthier “companion products” as part of an “ambitious goal” to meet the needs of consumers on weight loss drugs. The products he refers to include Nestle’s upcoming frozen food line, Vital Pursuit, which will launch later this year.
According to Schneider, the future may also hold some “companion offerings,” specifically geared toward consumers who are on obesity drugs. However, he did not provide a timeline or indicate what these offerings would entail.
Moving forward, Schneider stated that new product offerings and product lines for GLP-1 drug users are an “addition” that will ultimately benefit the food and drinks industry rather than be its only focus. He said, “Remember, there’s going to be a lot of consumers out there that are not on a GLP-1 diet, And there is lots [sic] of situations where snack and chocolate product may still be of a lot of interest.”
Schneider added that several products aimed toward serving GLP-1 drug users will most likely “make a lot of sense to consumers,” despite their specific weight loss goals. No matter an individual’s dietary journey, the CEO continued, “the same fundamentals apply, and that is you want to be sure that you’re losing fat and not lean muscle mass and you want to be sure that you don’t develop any vitamin deficiencies.”
