Written by Ciara Linnaeus
Analysts warn that food and beverage companies need to consider the impact Wegovy and Ozempic will have on consumer behavior.
Coca Co., Ltd. on Thursday after Walmart’s U.S. CEO said new weight loss drugs such as Ozempic and Wigovy were causing customers to buy less groceries and eat less. Coke and PepsiCo’s stock prices plummeted. Something high in calories.
Walmart (WMT)’s John Farner said in a Bloomberg interview that the company tracks which customers are taking its drugs, and that they are seeing “a small decrease in the overall basket” and a “small decrease in units, a small decrease in calories.” “We can confirm that this is causing a significant decrease in
Following the comments, Coca-Cola stock (KO) fell 4.8% and PepsiCo stock (PEP) fell 5.2%. Coca-Cola rose 0.4% on Friday, while PepsiCo fell another 0.8%.
Analysts are already predicting that the growing popularity and use of anti-obesity drugs could have far-reaching implications for the food and beverage industry, forcing companies to adjust their product selection to respond to changing consumer behavior. They have expressed concern that there may be.
Analysts at Morgan Stanley said in August that the number of cases is expected to rise to 24 million people, nearly 7% of the U.S. total, and packaged food and beverage manufacturers, restaurants, grocery stores and weight-loss programs will all be affected. I wrote that I would accept it. Population over the next 10 years.
Approximately 45% of the U.S. population is currently considered obese and 70% overweight.
Read now: Morgan Stanley raises weight-loss drug forecast to $77 billion as Ozempic/Wegovy frenzy continues
“Given the drug’s direct effects on reducing appetite and caloric intake, AOM intake is likely to induce widespread and lasting behavioral changes among a sizable population that accounts for a disproportionate share of food consumption.” “There is a strong tendency for this to occur,” the 17-member analyst team said in a report.
The new class of drugs includes Novo Nordisk’s (DK:NOVO.B) (NVO)’s Wigoby and Ozempic and Eli Lilly’s (LLY) Mounjaro. It has become so popular in the United States that supplies have sometimes run short, forcing the U.S. Food and Drug Administration to warn patients against using copies.
For more information, read: The dark side of the weight loss drug craze: Eating disorders, drug shortages, and dangerous counterfeits
The drug is given as a weekly injection and mimics the effects of GLP-1, a gut hormone that helps control blood sugar levels and reduce appetite. GLP stands for glucagon-like peptide.
Walmart also said its pharmacy business is benefiting from demand in Ozempic and Wegobee.
Meanwhile, as the graph below from data solutions company BondCliQ Media Services shows, bonds issued by Coca-Cola and PepsiCo were dominated by buyers on Thursday, before sellers emerged.
PepsiCo’s bond outstanding is $39.9 billion, while Coca-Cola’s is $36.8 billion.
Coca-Cola stock has fallen 18% since the beginning of the year, and PepsiCo stock has fallen 11%. The S&P 500 SPX rose 11%.
-Ciara Linnen
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10-09-23 0708ET
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