The rapid rise in weight loss drugs means that consumers' nutritional needs are 'shifting', providing new opportunities for food companies. Nestle CEO Mark Schneider told CNBC.
Investors were initially concerned about the popularity of GLP-1 drugs like Wegovy and Ozempic as it was assumed that people taking these drugs would consume less food, Schneider told CNBC's Silvia Amaro.
But he said that perspective has since changed. “I think what has emerged since then is that nutritional needs don't go away. They just change. So, you know before, during and after treatment with GLP-1 – consumers still have nutritional needs, but they may be different from someone else's. Who doesn't follow A diet to lose weight.”
According to Schneider, consumers who take weight-loss drugs simply have different nutritional needs. He said users of GLP-1 drugs need to focus more on protein intake to maintain muscle mass and ensure adequate vitamins and micronutrients are consumed.
This represents an opportunity for Nestlé to put the science out there and then “work on what we call companion products, which are products that then address some of the consumers' specific needs during that treatment,” Schneider said.
An 'interesting addition' to the food industry
Nestlé is looking to capitalize on the popularity of GLP-1 drugs through its “ambitious goal to push healthier products,” the CEO said.
GLP-1 drugs “will definitely be an interesting addition to all the other needs we're trying to meet in the food industry,” Schneider told CNBC, adding that even as the drugs grow in importance, they won't become the sole focus of food and beverage companies.
While GLP-1 users may be looking for products tailored to their diet and drug effects such as feeling full sooner than before, not all consumers will have the same goals.
“Remember, there are going to be a lot of consumers who are not on the GLP-1 diet. There are a lot of situations where a snack and a chocolate product might still be of great interest. So it doesn't go away,” Schneider explained.
Consumers will also be at different life stages, from childhood to old age, and therefore have different nutritional requirements that are met by different products, he added.
Frozen food range for GLP-1 users
Although the long-term effects of GLP-1 weight loss treatments remain uncertain and concerns about side effects persist, Schneider said it is important to respond to it as a “major consumer trend.”
The Swiss food and beverage giant announced earlier this month that it would launch Vital Pursuit, a frozen food range aimed at those taking GLP-1 medications. Twelve products are due to arrive in supermarkets later this year, including pasta, pizza and sandwich melts. All meals will include at least one essential nutrient such as calcium or iron.
Foods not traditionally associated with weight loss such as pizza will be included to provide consumers with variety, Schneider told CNBC.
“But the most important part is that they will all be controlled,” he said. “So micronutrient status is very important. So we add vitamins to make sure all the basic needs of these consumers are met.”
Nestlé also plans to offer other “companion offers” to consumers taking weight-loss medications, both in the United States, where the Vital Pursuit products will be launched, and elsewhere, Schneider said.
“Some of these products will also make a lot of sense for consumers if you're not on a GLP-1 treatment, but another type of weight loss treatment, because the same basics apply, and that is that you want to make sure that you're losing fat and not mass,” Schneider said. “Lean muscles and you want to make sure you don't have any vitamin deficiencies.”
