Vital Pursuit Garlic Herb Grilled Chicken Bowl
Source: Nestlé North America
Nestlé is launching a new frozen food brand, Vital Pursuit, targeting the growing market of consumers using GLP-1 drugs such as Ozempic and Wegovy.
Popular weight loss and diabetes drugs have taken off in the last year as more options hit the market and endorsements from celebrities like Oprah Winfrey and Elon Musk have emerged.
About 1 in 8 U.S. adults report using GLP-1 drugs at some point, according to a recent study poll From the health policy research organization KFF. About half of Americans, or about 6% of U.S. adults, are currently using one of these treatments.
Morgan Stanley research shows that by 2035, the total number of U.S. consumers taking the drug could soar to 31.5 million, or 9% of the population.
As the drugs’ popularity soars, investors are increasingly worried about what their rise means for food and beverage companies and fast-food chains. People taking medications often eat less frequently because they have less appetite and want more protein and less sugary and fatty foods. in October, Walmart U.S. CEO John Furner told According to Bloomberg, people who buy GLP-1 drugs from pharmacies buy less food, often with fewer calories.
But Nestlé saw an opportunity to cater to these consumers with Vital Pursuit.
“The reality is that diet has been dying, in a sense, over the past 25 years…To me, what we’ve done is actually given consumers a new tool to help them navigate this.” Confidence and success truly come from a journey, Nestlé North America CEO Steve Presley told CNBC.
The new brand’s initial 12-product lineup will include frozen bowls filled with whole grain or protein-rich pasta, as well as The sandwich melted, the pizza melted. These products will contain one or more essential nutrients such as protein, calcium or iron. The company plans to sell Vital Pursuit items for $4.99 or less, with gluten-free options available.
Vital Pursuit’s packaging will not mention the GLP-1 drug, but Nestlé said it will link the brand to the drug more directly on social media.
The new production line will enter the freezer aisle in the fourth quarter.
In recent years, Nestlé has also tried to focus more on health-conscious consumers. In 2018, the company sold its U.S. confectionery business, which includes brands such as Butterfinger, Crunch and Laffy Taffy, to Ferrero for $2.8 billion. Nestlé’s food business, which includes brands such as Stouffer’s and Toll House, accounts for just 14.5% of its U.S. sales.
Nestlé already owns Lean Cuisine, which was founded in 1981 as a healthier alternative to other frozen foods. The company chose to create a new brand to appeal to GLP-1 users because Lean’s brand is focused on consumers looking to limit their calorie intake. However, people taking GLP-1 medications may want to consume more nutrients, such as protein, which can help alleviate muscle loss associated with the medication.
“Consumer studies show that certain nutrients and certain macros need to be provided to truly help consumers stay healthy during GLP-1 treatment,” Presley said.
Switzerland-based Nestlé’s shares have fallen 16% this year, bringing its market value to $278 billion. The food company expects its global growth to slow this year as inflation-weary consumers buy less of its products.
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