Rollout of weight-loss drugs hit sales of ice cream & crisps as people eat less
ICE cream and crisp makers are facing a sales crunch as the rollout of weight-loss drugs is making people count their calories and eat less.
And the knock-on is being felt on the stock markets, with shares in Ben & Jerry’s maker Unilever, Walkers’ parent PepsiCo and Kit-Kat firm Nestlé dipping yesterday.
It comes as data in the US showed people on prescription appetite suppressant treatments like Ozempic and Wegovy were already spending less.
Retail giant Walmart said people on the jabs are buying “less units, slightly less calories”.
CEO John Furner added: “We definitely do see a slight change compared to the total population, we do see a slight pullback in overall basket.”
Shares in Unilever fell by as much as two per cent yesterday as the market digested Walmart’s warning before closing slightly up 0.50p to £40.30.
With Kraft Heinz, PepsiCo and Nestlé also seeing a hit, investors are now having to digest what impact the weight-loss drugs will have on the fast-food and confectionary industry.
Steve Cahillane, the boss of Kellanova — the crisps and snacks arm of Kellogg’s — insisted the firm was “by no means complacent” on the situation.
He said of the drugs: “Like everything that potentially impacts our business, we’ll look at it, study it and, if necessary, mitigate.”
The US is further ahead with the rollout of weight loss drug injections than the UK with nine million prescriptions so far this year.
Recent figures suggest that as many as 15 per cent of Americans have tried the treatments.
Currently, Ozempic is only available in the UK on prescription for those with Type 2 diabetes.
Wegovy has been available on the NHS since September for those with a body mass index of more than 30.
It is thought that there are around 50,000 eligible patients in England already.
However, the impact of such weight-loss drugs could have far-reaching impact, not just on healthcare systems.
Analysts at Jefferies have suggested airlines could save tens of millions of pounds if the average passenger lost 10lb in weight, because they would save on fuel costs flying lighter planes.