Snack Food Giants Bet on Junk Despite Rise of Obesity Drugs

Food companies like Kellogg's and Smucker's are betting big on snacks, spinning off or acquiring snack brands. This comes as prescriptions surge for obesity drugs like Wegovy and Ozempic.
Snack sales are growing faster than other grocery categories, fueled by millennials and Gen Z who snack more frequently.
Obesity drugs suppress appetite and some patients report losing interest in junk food. This could threaten sales growth for junk food makers.
But the high cost of the drugs means uptake may be slow. And lower income consumers who eat the most junk food are unlikely to use the drugs.
Food companies are also innovating with healthier snacks. While the drugs may pressure changes, shifts would likely happen gradually.

cnbc.com

Relevant topic timeline:

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Posted 10/1/2023, 12:00:01 PM