Is a dairy cabinet product about to spark surge for makers?

The so-called Ozempic Revolution has wiped billions off the market value of food and drink companies. But new weight-loss drugs are boosting at least one line of products that has sometimes faced sluggish demand: yogurt. 

France’s Danone says it’s seeing a jump in demand for its high-protein, low calorie yogurts in the US that it attributes partly to the new obesity-treatment craze. US regulators also have helped by endorsing the product, saying two cups a week could reduce the risk of diabetes.

“We have a very large range of protein yogurts, which are flying off the shelf,” Juergen Esser, deputy chief executive officer in charge of finance, said in an interview. “I think those products are attractive to both consumers who are under the treatment of GLP-1 or who just wish to manage their weight or wellbeing.”

Danone isn’t explicitly marketing to users of GLP-1 treatments like Novo Nordisk A/S’s Wegovy and Eli Lilly & Co.’s Zepbound. At least not yet. However, Swiss food giant Nestle SA is going a step further. This week it will launch a new website designed to direct consumers to products devised especially for people taking the slimming injections, from protein powder to vitamins against hair loss.

About 30 million Americans have taken GLP-1 drugs, sparking consumption shifts with ripple effects on retail, travel and beyond. By dulling cravings, the medicines from Lilly and Novo can melt away fat and improve heart health.

An Eli Lilly & Co. Zepbound injection pen arranged in the Brooklyn borough of New York, US, on Thursday, March 28, 2024. Patients, doctors and pharmacists across the US are struggling to get their hands on Eli Lilly & Co.'s powerful new obesity drug Zepbound, as demand for the weight-loss shot soars. Photographer: Shelby Knowles/Bloomberg

Food companies are betting that patients seeking meals that are nutrient-rich and not too filling will turn to their new processed offerings, vitamins and supplements and offset some of the shunning of items that traditionally underlie their profits, like ice cream and chocolate bars.  

Nestle plans to start selling its Vital Pursuits food line this year, which contains 12 portion-controlled frozen meals high in protein and fiber. 

Eating less can lead to nutritional shortages, and patients have found they can lose muscle along with fat even as they battle side effects like nausea and hair loss. Nestle is seeking to address those needs as well with the new website, which claims to “complement your weight-loss journey — even after stopping it.”

Growing Trend 

The KitKat maker will sell a supplement for hair growth under the Nature’s Bounty brand, electrolyte tablets with strawberry-lemonade flavor for anyone upping their exercise regimen, as well as collagen peptides to boost skin elasticity and avoid the hollowed look known as “Ozempic face.” It will also offer consultations with nutritionists.

Nestle has brands and expertise to support customers’ shifting needs, such as “preserving lean muscle mass, managing digestive upset and assuring an adequate daily consumption of micronutrients,” said Anna Mohl, chief executive officer of Nestle health science. 

Others are following suit. Daily Harvest is courting users of GLP-1 drugs like Wegovy and Zepbound with a broccoli and white-bean soup and a dragon-fruit and lychee smoothie. Healthcare company Abbott offers nutrition shakes targeting consumers of weight-loss treatments.

Conagra Brands, the maker of Chef Boyardee canned pasta, said at a conference in February that it was selling more products that cater to the needs of weight-loss drug takers. Its “better-for-you frozen meals” increased 8% among GLP-1 users, it said, while its protein-packed meat snacks and low-calorie, high fiber popcorn were also a good match for users’ needs.

Nestle shares have dropped about 3.5% this year while Danone is little changed over the period. Both rose less than 1% in early trading Monday.