Pots of Activia yoghurt, produced by Danone SA, rest on screen.
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The CEO of French durable goods huge Danone minimized the risk of weight problems drugs on its food organization, arguing that customers were most likely to turn to healthy items as part of their brand-new weight reduction program.
Antoine de Saint-Affrique stated that rising need for drugs like Wegovy and Mounjaro would just increase customer hunger for more dietary items.
“We see ourselves as extremely complementary to GLP-1s,” de Saint-Affrique informed CNBC’s Charlotte Reed Wednesday.
GLP-1s, or glucagon-like peptide 1 agonists, are the underlying class of drugs in weight reduction injections such as Wegovy andMounjaro They work by simulating hunger controling hormonal agents in the body and efficiently minimizing cravings levels.
The fast increase of such drugs has actually triggered issue amongst food makers, who fear falling sales as customer hunger subsides. The CEO of Wegovy maker Novo Nordisk stated in February that he was fielding calls from “scared” food chiefs asking how the brand-new pharmaceutical class may impact their services.
However, de Saint-Affrique stated that Danone’s items, that include Activia yoghurts and Alpro plant-based milks, would be an essential element of customers’ brand-new diet plans.
“We provide protein and protein that you cannot find naturally,” he stated. “You need to have those proteins and if you are under the regime, you will miss those proteins. We can bring them we contribute to your gut health,” he stated.
“We are actually at the heart of what is needed when you’re using something like GLP-1,” de Saint-Affrique included.
Analysts at monetary services research study company Kepler Cheuvreux stated in a research study note last month that worries over the effect of GLP-1s on the durable goods market might be overblown, especially in the dietary foods area.
“GLP-1 users may consume fewer calories, but we do not see a material impact on overall food demand, while we see opportunities for food makers of protein products and diet supplements,” Jon Cox, head of European customer equities, composed in an emailed note.
“While consumers may shun bad-for-you ultraprocessed foods (UPFs), we believe European companies generally have healthier portfolios compared to some rivals,” he included.
Kepler Cheuvreux called Danone and Swiss food maker Nestle as possible recipients in the brand-new durable goods landscape. Jefferies last month likewise called Danone as a buy amidst a broader slump in the food sector as customers cut down investing in the face of high inflation.
