Weight Loss Drugs Put Hershey’s, Nestle, and “More Indulgent” Restaurants at Risk

A new survey shows some consumers are spending less on eating out at restaurants and ordering takeout.
May 20, 2024
Facebook LogoTwitter Icon
Black LinkedIn Icon
hand saying no to a tray with burger, fries, and a soda
Image Credit: Livestrong

Weight loss drugs, called GLP-1 medications, are putting some businesses at risk of losing out on sales. New data from a Morgan Stanley survey shows that some consumers are spending less on eating out at restaurants and ordering takeout.

change in monthly spending on food after starting a GLP-1

Popular weight loss drugs like Ozempic and Wegovy work by making you feel full. As a result, consumers on weight loss drugs have smaller appetites and eat less frequently.

The soaring demand for GLP-1 medications – Novo Nordisk, a multinational pharmaceutical company, generated nearly $14 billion from Ozempic sales and $4.5 billion from Wegovy sales in 2023 – put the bottom line of some of the largest restaurant chains and manufacturers of consumer packaged goods at risk.

The businesses most at risk of losing sales include:

  • Packaged snacks producers: Hershey’s, Nestle, Mondelez International, etc.
  • “More indulgent” fast-casual restaurants: McDonald’s, Wingstop, Shake Shack, etc.
  • Alcoholic drink brands: Boston Beer, Constellation Brands, Molson Coors, etc.

Nestle, the world’s largest food and drink corporation, which has made billions off of junk food like sugary breakfast cereals and KitKat chocolate bars, recognizes the upcoming challenges of the new Ozempic world. An internal document acknowledged that more than 60% of its food and drink products do not meet a “recognized definition of health,” therefore, they are starting to invest more in nutritious products to benefit people on GLP-1 medications.

Read next