Diabetes drug that lets you eat less scares supermarkets and food giants

People who use Ozempic and similar appetite suppressants have less food in their shopping carts. This situation worries both multinational food companies and large supermarket chains. The relationship between the use of the drug and the amount of food purchased was confirmed by a recent study conducted by the US chain Walmart. Other giants, such as Kellogg-Kellanova, are also conducting studies to estimate the drug’s potential impact, especially on snacks. giants food They fear that sales will decrease in both quantity and type of products.

trendy drugs

Ozempic, produced by Norwegian Novo Nordisk, has been at the center of international controversy for several years. This drug, designed to combat type 2 diabetes, has been advertised by doctors for some time. influencers It is seen on social media as a weight loss drug due to its effects, which include appetite suppression. The increase in prescriptions of the drug, which increased by 300 percent between 2020 and 2022 in the USA, caused serious supply problems, seriously endangering the lives of people for whom Ozempic was not useful in fighting obesity or losing weight, but in getting rid of diabetes. The other side of the coin is about the relationship with food and the over-purchasing of often useless products that don’t nourish you, they just make you fat.

Analysis in cart

Walmart Inc. said it saw an impact on shopping demand from people taking the diabetes drug Ozempic, Wegovy and other appetite suppressants. “We’re definitely seeing a slight change compared to the total population, a slight decline in the overall basket,” John Furner, the chain’s U.S. CEO, said in an interview with Bloomberg. “Just fewer units, a little less calories,” the manager said. The chain studies changes in sales patterns using anonymous customer data. Because these drugs are also sold on its shelves, Walmart is able to monitor purchasing changes among people who purchase the drug via invoice.

It can also compare these habits with the habits of similar people who do not use the drug. Although not fully compatible with respect for privacy, it is a useful way for the multinational distribution company to orient itself. Furner says it’s too early to draw definitive conclusions about appetite suppressant drugs, but he’s not the only executive trying to analyze their impact on the economy and business.

Anxiety about snacks

U.S. food companies are not complacent about the outcome of leaving Kellogg Co., as the Kellanova case shows. “We’re not complacent at all,” Steve Cahillane, the snack company’s CEO, said in an interview. Kellogg Co. just completed the separation of its North American grain business, now called WK Kellogg Co. The snack business, which includes brands such as Cheez-It, Pringles and Rice Krispies Treats, falls under Kellanova’s purview. Consumption of these foods is increasing and is expected to continue to increase. Despite the positive predictions, Cahillane said the company is investigating the potential impact of drugs such as Ozempic on eating behaviors. Although it is early, the company’s idea is to be able to intervene in a timely manner when necessary. “Like anything that has the potential to impact our business, we will review it, examine it and mitigate it if necessary,” the executive told Bloomberg, without making any future predictions.

change route

In September, a report by an analyst at financial services firm Jefferies claimed that Kellogg was among the snack makers potentially most exposed to adverse effects from the use of appetite suppressant drugs, although data to that effect is not known to exist at this time. This isn’t the first “threat” that multinationals must respond to food. Cahillane cited UK regulations that restrict sponsorships and marketing methods that contain high levels of fat, sugar and salt. In this case, the company decided to change its formulations and sales strategies. A choice that, according to the manager, “does not impact” their business. However, this forced them to change the way they produce their snacks.

Source: Today IT