Maker of weight loss drug Wegovy gets calls from 'scared' food bosses

Novo chief executive Lars Fruergaard Jorgensen says food giants are 'scared' about how quickly weight-loss drugs will be rolled out.

Makers of everything from snack food to knee implants are facing a potential threat from Novo Nordisk's powerful appetite-suppressing treatments. So they’re calling the drugmaker for advice.

“A couple of CEOs from, say, food companies have been calling me,” Novo chief executive Lars Fruergaard Jorgensen said during a wide-ranging discussion. He declined to name names, saying questions had centred on how the drugs work and how fast they would roll out. “They are scared about it,” he said.

The impact of the drugs, including Ozempic and Wegovy, could vary across industries, Mr Jorgensen said. He pointed to the success of clinical trials of Wegovy on weight-linked ailments like kidney disease and knee arthritis, as well as recent analyst research showing a small change in consumer behaviour can have major financial implications. 

The new class of drugs known as GLP-1s, prescribed for diabetes as well as obesity, cause weight loss at levels previously achievable only with surgery. With a new competitor from Eli Lilly the drug Zepbound, on the market since December, Bloomberg Intelligence estimates the weight-loss market alone could reach $80bn by 2030. That’s left companies from major retailers to fast-food restaurants grappling with how a less hungry, potentially healthier customer will affect business. Some firms have said fresh food will still appeal to people who are trying to lose weight.

What's your view on this issue?

You can tell us here

French food giant Danone, which makes popular yoghurt brands, also sees GLP-1 drugs boosting business. People taking drugs like Ozempic and Wegovy are “looking for products with high protein and low fat content,” Danone chief financial officer Juergen Esser said last year. 

“I say you can never close your eyes on any development that is happening,” Unilever chief executive Hein Schumacher said earlier this week, adding he himself had not called Mr Jorgensen. Nestle, the maker of Kit Kat chocolate and a myriad of other confectionery and food items, said in October it was working on products designed to complement the new class of weight-loss drugs. 

Others are watching and waiting. Conagra Brands CEO Sean Connolly told analysts last year the snackmaker has “an entire department of demand scientists” studying changes in consumer behaviour. “There’s still so many unknowns regarding the rate of adoption, the impact on food choices,” Hershey CEO Michele Buck said last year. 

Bloomberg