Nestle to Launch Vital Pursuit Frozen-Food Brand for GLP-1 Users

• Nestle is planning to introduce a new frozen-food brand, Vital Pursuit, targeting individuals who use Ozempic and Wegovy.
• The popularity of GLP-1 drugs for weight loss and diabetes treatment has raised investor concerns about the future sales of food companies.
• Nestle's North America CEO Steve Presley stated on CNBC that consumer research indicates that specific nutrients and macros are necessary for consumers to maintain their health during the GLP-1 treatment process.

Nestle is introducing a new frozen-food brand, Vital Pursuit, targeting the expanding group of consumers who use GLP-1 medications such as Ozempic and Wegovy.

GLP-1 drugs have gained popularity in the U.S. over the past year due to the increasing number of options available and endorsements from celebrities like Oprah Winfrey and Elon Musk. According to a recent survey from KFF, roughly one in eight adults in the U.S. has used a GLP-1 drug at some point, with around half of those currently using one of the treatments. By 2035, the total number of U.S. consumers taking the medication could reach 31.5 million, or 9% of the total population, according to Morgan Stanley research.

With the increasing popularity of drugs, investors are becoming worried about their impact on food and beverage companies and fast-food chains. Those who use the medication typically have fewer cravings and prefer more protein and less sugary and fatty foods. In October, U.S. CEO John Furner of the pharmacy revealed that customers who purchase GLP-1 drugs from their stores are consuming less food, typically with fewer calories.

But Nestle sees an opportunity to cater to those consumers through Vital Pursuit.

Nestle's North America CEO Steve Presley stated on CNBC that for the past 25 years, the diet industry has been declining, but their company has given consumers a new tool that boosts their confidence and success on their journey.

Vital Pursuit's initial product lineup will consist of 12 items, including frozen bowls with whole grains or protein-packed pasta, sandwich melts, and pizzas. These products will contain at least one essential nutrient, such as protein, calcium, or iron. The company intends to sell Vital Pursuit items for $4.99 or less and provide gluten-free options.

Nestle will connect Vital Pursuit to GLP-1 medications more directly on social media, but the packaging won't mention the drugs.

The new line will hit the freezer aisle by the fourth quarter.

Nestle has recently shifted its focus towards health-conscious consumers by selling its U.S. candy business, which includes brands like Butterfinger, Crunch and Laffy Taffy, to Ferrero for $2.8 billion. Despite this, Nestle's food business, which includes brands like Stouffer's and Toll House, only accounts for 14.5% of its U.S. sales.

Nestle, the owner of Lean Cuisine since 1981, has created a new brand to cater to GLP-1 users who require more nutrients, such as protein, to combat muscle loss associated with the medication.

Presley stated that consumer research indicates that specific nutrients and macros are necessary to aid consumers in maintaining their health during the GLP-1 treatment process.

Nestle's global growth is expected to slow this year, resulting in a 16% decline in the share price of the Swiss-based food company, bringing its market value to $278 billion.