Jim Cramer, the host of CNBC’s “Mad Money,” has issued a warning to investors about the potential impact of weight loss drugs, such as Ozempic and Wegovy, on the food and beverage industry.
What Happened: Cramer cautioned investors on Monday about the growing popularity of GLP-1s, a new class of weight loss and diabetes drugs, such as Mounjaro and Zepbound, reported CNBC.
He advised investors to be cautious with food and beverage stocks, as the increasing use of these drugs could potentially lead to a significant decline in the industry. "Stay away from these food and beverage stocks because there will be a day, that day will come, when one of them finally admits they've been hurt by the GLP-1s, and that will take down every stock in the group," he said.
He also highlighted other factors that could contribute to a decrease in sales for food and beverage companies. While companies like PepsiCo Inc (NASDAQ:PEP) attribute their declining sales to a reduction in consumer disposable income, Cramer ...