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Danone: Weight-Loss Drugs Spur Demand for Health-Focused Foods

World 24.06.2024
Source: The DairyNews
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The rise of GLP-1 weight-loss treatments like Wegovy and Zepbound is reshaping consumer food preferences, notably boosting demand for high-protein, low-calorie options such as yogurt. Danone, a leading French food company, reported a significant increase in U.S. sales of its protein yogurts, attributed in part to the popularity of these obesity treatments.
Danone: Weight-Loss Drugs Spur Demand for Health-Focused Foods
Danone's Deputy CEO, Juergen Esser, noted the surging demand: “We have a very large range of protein yogurts, which are flying off the shelf.” The company's products are gaining traction not only among those undergoing GLP-1 treatment but also consumers interested in general weight management.

Meanwhile, Nestle is taking proactive steps to tailor its product lines to meet the needs of consumers using these medications. The company is set to launch a dedicated website offering products ranging from protein powders to vitamins that combat hair loss—a common side effect of weight-loss drugs.

The impact of these drugs extends beyond individual health to broader consumption patterns. About 30 million Americans are reported to have used GLP-1 drugs, leading to a shift in dietary preferences that favor nutrient-rich and less filling meals.

To address potential nutritional deficiencies caused by reduced food intake, Nestle is introducing the Vital Pursuits food line, featuring portion-controlled, high-protein, and high-fiber meals. The company also plans to offer supplements for hair growth and products aimed at enhancing skin elasticity to counteract the 'Ozempic face' effect.

Other companies like Daily Harvest and Abbott are also aligning their offerings with the needs of this growing consumer segment, introducing specialized products such as nutrition shakes and meals designed for those on weight-loss treatments.

While Nestle's shares have dipped slightly this year, the general market response to these strategic adjustments has been muted, with both Nestle and Danone seeing less than a 1% rise in early trading. This market reaction underscores the evolving landscape of the food industry, as companies adapt to integrate health science into their core product strategies.
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