LONDON, Oct 19 (Reuters) – Nestle (NSN.SW) (NSRGF) on Thursday mentioned it has began work on merchandise to “companion” weight reduction medication like Novo Nordisk’s (NVO) game-changing Wegovy, hoping to money in on their rising reputation.
The Swiss meals big’s CEO Mark Schneider mentioned Nestle had not seen any impression from such medication on gross sales to date, referring to the menace they pose to the packaged meals business that has spooked buyers in recent weeks.
Nestle shares fell this month after Walmart, the world’s largest retailer, mentioned it noticed a slight pullback in meals consumption with folks taking appetite-suppressing medication.
“We’re working already on a variety of merchandise that might function companion merchandise,” Schneider mentioned throughout an earnings briefing, noting that some dietary supplements may also help with the “lack of lean muscle mass” and “speedy regain of weight”.
“The largest components of our portfolio won’t be affected” by this new breed of weight reduction medication, he mentioned.
Globally, Nestle’s largest businesses are espresso and pet care, whereas frozen meals, confectionary and ice cream make up 15% of gross sales.
“We’re watching this rigorously and can maintain you up to date,” Schneider mentioned.
Wegovy has been proven to assist sufferers scale back physique weight by round 15% when used together with train and way of life modifications. It is to date available within the United States, Norway, Denmark and, as of late July, Germany.
(Reporting by Richa Naidu; Editing by Christopher Cushing)
