Chief Executive Mark Schneider of Nestle (NESN.S) stated on Wednesday that the company does not perceive any danger to its massive coffee business from the growing popularity of weight-loss medications like Eli Lilly’s (LLY.N) Zepbound and Novo Nordisk’s (NOVOb.CO) Wegovy.
Instead, the CEO saw chances for Nestle to grow its health science division by offering protein bars, beverages, and powders for those on GLP-1 agonist medications.
Schneider posted on LinkedIn, saying, “To break the myths, we haven’t seen evidence that GLP-1 patients have a reduced appetite for coffee.”
For Nestle, the largest food corporation in the world, which owns the brands Nescafe and Nespresso capsule coffees, coffee is essential.
The sector accounts for around 20 percent of the Swiss company’s yearly revenues, which were 94.4 billion Swiss francs ($109.53 billion) in the previous year.
Concerns about how the popularity of new medications may affect food and drink sales have arisen in the consumer and retail sectors.
It has been demonstrated that the medications, which were once intended to treat type 2 diabetes, lessen food cravings and slow down stomach emptying.
According to Schneider, patients on the medications may lose lean muscle mass; however, this condition may be avoided by increasing protein consumption and exercising.
“While GLP-1 patients may consume less sugar-laden or fatty foods, they will need to meet their nutritional needs through other foods, beverages, and supplements,” Schneider stated.
He stated that Nestle was already witnessing a rise in the demand for protein bars, beverages, and powders and that there was potential for vitamin and nutritional supplements.
“Within Nestle Health Science alone, we already have more than 1.5 billion Swiss francs of revenue coming from products that provide nutritional benefits suitable for GLP-1 patients,” Schneider stated.
While the company was primarily concentrated in North America, where GLP-1 acceptance was at its peak, Schneider stated that Nestle was looking at expanding the global reach of its product line. Schneider promised to provide new items the next year to capitalize on the trend, but he did not provide specifics.
