Not just ideologically / ethically (which we care about) but also for returns. We’ve always thought investing in a new junk food had its problems. One of the most interesting notes in this article : “The shareholders said the market is currently oversaturated with foods that cause harm to #publichealth and that create “systemic risks to investor returns.” “ As the world’s largest food company, they’re committing to boost sales of #healthier products by as much as $27.3B by the end of this decade. Some hopeful news from - wait for it … Nestlé. New Fare The Wall Street Journal #cpgbrands #cpgindustry #healthandwellness #nutrition #ultraprocessedfoods Īmerica’s Food Giants Confront the Ozempic Era Whether you agree with the method (drugs / medication), there’s no denying the wider adoption of these meds will create a new opportunity for food companies. The #ozempic era leaves an opening to develop better products, focus on nutritional density, and create more access to fresh food. So curious where #bigCPG goes from here. What makes people feel good are fruits, vegetables, fresh foods, and simply made snacks. When you take the addiction out of food (addiction fed and engineered by #ultraprocessed ingredients), people are left wanting to eat what makes them feel good. It feels like a fundamental misunderstanding of what it is they make today. It’s not the size of your packaging that will need to change. These executives are completely underestimating the effect and potential of these drugs, IMO. Several executives pointed to portion control of existing products. Conagra Brands CEO Sean Connolly: “Food companies can respond with new products including smaller packaging sizes”. ![]() The S&P Packaged Food and Meat sub index has Dropped 14% this year (compared to 11% growth across other indices). Publicly traded companies are already suffering. Wall Street is projecting future impact to some of the biggest #CPGs: The Hershey Company, Mondelēz International, Hostess Brands & Campbell's are most exposed according to Morgan Stanley. Grocery bills for one patient, as an example, dropped 20%. For #Ozempic users (and the like), daily calorie consumption is predicted to decrease by 30%. ![]() What does the #Ozempic era mean for the #foodindustry? Jesse Newman at the The Wall Street Journal gives a great rundown of how people taking GLP-1 blockers (like #Ozempic) are adjusting their food purchases:
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