Vital Pursuit Garlic Herb Roasted Chicken Bowl
Source: Nestlé North America
Nestlé is launching a new frozen food brand, Vital Pursuit, aimed at the growing market of consumers using GLP-1 medications such as Ozempic and Wegovy.
Over the past year, weight loss and diabetes medications have taken off as more options hit the market and celebrities like Oprah Winfrey and Elon Musk endorse them.
About one in eight adults in the U.S. reported using a GLP-1 medication at some point, according to a recent survey from health policy research organization KFF. About half of those Americans, or about 6% of American adults, currently use one of the treatments.
The total number of American consumers taking the drug could rise to 31.5 million, or 9% of the total population, by 2035, according to research from Morgan Stanley.
As the popularity of drugs has skyrocketed, investors have worried about what their rise means for food and beverage companies and fast-food chains. People taking the medication typically eat less frequently because they have fewer cravings and want more protein and fewer fatty and sugary foods. In October, Walmart US CEO John Furner told Bloomberg that people who buy GLP-1 drugs at their pharmacies are buying less food, generally with fewer calories.
But Nestlé sees an opportunity to serve those consumers through Vital Pursuit.
“The reality is, for the last 25 years, the diet has been dying, in a sense… To me, what we've done is give consumers a new tool that really gives them confidence and success on this journey. “Nestlé North America CEO Steve Presley told CNBC.
The new brand's initial 12-item line will include frozen bowls with whole grains or high-protein pasta, along with melted sandwiches and pizzas. The products will include one or more essential nutrients, such as protein, calcium or iron. The company plans to sell Vital Pursuit items for $4.99 or less and offer gluten-free options.
Vital Pursuit's packaging will not include mention of the GLP-1 drugs, but Nestlé said the company will more directly connect the brand to the drugs on social media.
The new line will hit the freezer aisle in the fourth quarter.
In recent years, Nestlé has also tried to focus more on health-conscious consumers. In 2018, it sold its U.S. candy business, which includes brands such as Butterfinger, Crunch and Laffy Taffy, to Ferrero for $2.8 billion. Nestlé's food business, which includes brands such as Stouffer's and Toll House, only accounts for 14.5% of its sales in the United States.
Nestlé already owns Lean Cuisine, founded in 1981 as a healthier alternative to other frozen meals. The company decided to create a new brand to reach GLP-1 users because the Lean brand focuses on consumers looking to limit their calories. However, people taking GLP-1 medications may want to consume more nutrients, such as protein, which may help with muscle loss associated with the medications.
“Consumer research shows that there are certain nutrients and certain macros that need to be administered to help consumers stay healthy during GLP-1 treatment,” Presley said.
Shares in Swiss-based Nestlé have fallen 16% this year, dragging its market value to $278 billion. The food company expects its global growth to slow this year as consumers, tired of inflation, buy less of its products.
