( Reuters) – Slim Jim beef jerky maker Conagra Brands stated on Thursday it might think about altering part sizes of its treats if the increasing usage of weight-loss drugs leads to modifications to food intake patterns.
Drugs such as Wegovy and Ozempic come from a class of drugs referred to as GLP-1 agonists that were established to deal with type 2 diabetes, however likewise imitate a gut hormonal agent that reduces cravings and promotes a sensation of fullness.
Sales of these drugs are skyrocketing, causing concerns about whether higher customer concentrate on weight-loss might moisten sales for treat manufacturers such as Nestle, Mondelez International and Kraft Heinz.
” If we wind up seeing modifications in customer consuming patterns, let’s state they go to smaller sized parts … (then) we create smaller sized parts,” CEO Sean Connolly stated on a quarterly teleconference.
Conagra, which likewise makes Act II popcorn, might think about altering the active ingredients in some items if customer choices alter, Connolly stated, however included that he did not see such modifications being required in the next 6 months.
Connolly informed Reuters that Conagra’s researchers are studying customer habits for possible shifts.
” Plainly among the important things that (researchers) can see in the market now are the early days of these drugs that are being utilized to assist individuals handle their weight,” he stated. “Among the important things that business will require to do is comprehend what will be the ramifications … if that habits ends up being more broad based.”
Adoption of weight-loss drugs might require food business to reassess their profits and earnings projections, and alter dishes, stated Michael Ashley Schulman, primary financial investment officer at Running Point Capital Advisors.
” It is certainly an issue that the weight-loss drugs will potentially have a substantial influence on a great deal of packaged durable goods,” Schulman stated.
CFRA Research study expert Arun Sundaram stated some packaged food business are fretted about the drugs’ long-lasting effect given that they offer items that are high in sugar and not always healthy.
( Reporting by Granth Vanaik in Bengaluru; Modifying by Rod Nickel)