WMT - Ozempic Effect: Food Industry Feels The Heat As Weight-Loss Drugs Get Popular Investors Call For Menu Makeovers | Benzinga
The rising popularity of weight-loss drugs like Ozempic is now pressuring food companies to reevaluate their business strategies. According to a recent Bloomberg Markets Live Pulse survey, investors are urging food companies to revamp their offerings to counter the growing influence of these medications.
What Happened: The survey, conducted by Bloomberg Markets Live, revealed that nearly 75% of the 303 respondents believe that companies selling unhealthy foods should recalibrate their business models. This could involve reducing portion sizes, altering recipes, or even divesting assets. The survey also indicated that the emergence of appetite-suppressing drugs like Zepbound, Ozempic, and Wegovy presents a significant threat to “Big Food.”
Mayssa Al Midani, the lead manager of Pictet Asset Management's nutrition fund, emphasized that the challenge in developed countries is not about increasing calorie consumption but shifting towards healthier foods.
“We need to make sure that we're invested in the companies that have the right category exposures, as well as the ones that have the capability of innovating and adapting to these times,” Midani said.
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