Big food is learning to love weight-loss drugs

People taking the drugs do indeed eat less—especially indulgent treats. But they also have specific dietary needs that food makers are starting to understand better and cater to, in some cases with products specifically designed for them.

GLP-1 drugs work in part by mimicking a gut hormone to suppress appetite and make users feel full. They are used to treat both Type 2 diabetes and obesity. These include Novo Nordisk’s Ozempic and Wegovy for diabetes and obesity, respectively, as well as Eli Lilly’s Mounjaro and Zepbound.

The drugs can also cause potential side effects, including a loss of muscle mass and digestive problems such as nausea, diarrhea and constipation.

These effects are visible in the shopping behaviors of GLP-1 users. Survey data from consumer research firm Numerator reveals some unsurprising losers among food categories: Of 1,090 people using GLP-1s for weight loss (as opposed to diabetes), a net 38% say they are eating fewer cookies, pastries and cakes, making it the most affected category. That is followed by carbonated soft drinks at 36%, chocolate candy at 34% and fast food at 26%.

But they are also consuming more healthy foods and, in particular, seeking out increased protein and fiber to help with muscle maintenance and digestive issues. In the Numerator survey, a net 42% of GLP-1 weight-loss users reported eating more fresh fruits and vegetables. There were also 2% eating more cheese, 19% eating more poultry and 20% eating more yogurt.

“Obviously, GLP-1 is good news for us," said Danone Chief Executive Antoine de Saint-Affrique at an investor conference in September, in response to a question about why yogurt sales have been strong in the U.S. “I mean, if you look at the body effects of some GLP-1 treatments, obviously it has an impact on gut, and it has an impact on muscles. Guess what? We have the gut health and protein."

Campbell Soup CEO Mark Clouse made his own pitch at an investor day for the company’s signature product as a good match for GLP-1 users, saying its soups and broths “offer nutritionally dense options, great satiety at a relatively low caloric level, with many also easy to digest."

Conagra Brands argues its various meat-stick and popcorn offerings are good snacking solutions for GLP-1 users seeking protein and fiber, respectively. But its real asset in the GLP-1 era is something that has been the company’s focus for years: frozen entrees. In its own examination of a full year of data on GLP-1 users, single-serve frozen meals were the “most advantaged category," company executives said in an interview.

Conagra owns the Healthy Choice and Marie Callender’s brands of frozen entrees. The former is a more obvious fit as it stresses healthy options with lots of vegetables, often high protein, and at limited portions. But even Marie Callender’s—more oriented around comfort foods such as chicken pot pies—has worked well with GLP-1 users thanks to controlled portion sizes and convenience. This is in part because cooking loses some of its appeal for GLP-1 users.

“Part of the experience of cooking is this desire for food, this craving, this engagement with food. But if you lose some of that motivation and desire, food becomes a little more functional," said Bob Nolan, senior vice president of demand science at Conagra.

To reach these consumers, Conagra is using online advertising to target people searching for information on GLP-1 diets, and making sure frozen meal packaging prominently calls out high protein and fiber content.

Some companies are going much further. Global food-industry giant Nestlé has introduced in the U.S. a dedicated line of frozen meals called “Vital Pursuit" that are aimed at GLP-1 users. Its Cauliflower Crust Three Cheese Pizza, for instance, contains 20 grams of protein and 4 grams of fiber, both called out on the front of the packaging.

Nestlé also sees an opportunity in its Health Science unit, which sells dietary supplements. Supplement use rose a net 18% among GLP-1 users, according to Numerator data, as many seek to ensure they are getting enough nutrients despite eating less. Nestlé has launched a dedicated website promoting these products for GLP-1 users, including protein shakes, fiber supplements and probiotics for gut health, and even supplements for hair loss, which can be a side effect of rapid weight loss.

There has been a debate in the industry over whether existing diet products such as protein bars and shakes will suffer or benefit from GLP-1 use. Users might see less need for them if they are losing weight, but Numerator’s data indicates their use actually rises as consumers seek protein supplementation. They also—crucially—do well with people coming off the drugs, who tend to regain weight rapidly unless they make big lifestyle changes.

Take Simply Good Foods, maker of the Atkins line of low-carb treats and Quest protein bars. The company recently launched a line of shakes targeted at GLP-1 users called “Atkins Strong," featuring high protein and fiber content, and advertise a “muscle and gut health complex" on the packaging.

“I would say that I’m equally, if not more, excited about Atkins as an off-ramp for consumers who want to get off their drugs," Simply Good Foods Chief Executive Geoff Tanner said on an April conference call.

Of course, food companies can’t have it both ways, claiming GLP-1 use will boost targeted products while not hurting their junk food sales. So far, though, even makers of the least healthy indulgences have insisted they aren’t seeing much impact.

J.M. Smucker, for instance, acquired Twinkies-maker Hostess Brands last year for $5.6 billion including debt. That falls squarely into the most affected category, according to Numerator. Yet company executives continue to say they aren’t seeing any effect.

“To date, we have not seen a meaningful impact to consumption across our portfolio due to GLP-1 usage, however we are continuing to closely monitor consumer adoption and behavior," the company said in a statement to The Wall Street Journal.

This could perhaps be because uptake of the drugs, while growing, remains limited by factors such as high costs and restrictive insurance coverage. Morgan Stanley estimates that there are currently 5.1 million Americans on GLP-1 drugs for Type 2 diabetes and 1.7 million for obesity. But given that around 40% of the U.S. adult population could be considered obese, Morgan Stanley estimates there will be more than 20 million taking GLP-1s by the early 2030s. That could make the impact on food sales, both positive and negative, harder to miss.

Write to Aaron Back at aaron.back@wsj.com