Nestle is entering the frozen-food market with its new brand, Vital Pursuit, targeting consumers who use GLP-1 drugs like Ozempic and Wegovy. These weight loss and diabetes drugs have gained popularity, with roughly one in eight adults in the U.S. reporting the use of a GLP-1 drug at some point. Currently, around 6% of U.S. adults are using these treatments, and this number is expected to increase to 31.5 million, or 9% of the total population, by 2035.
Investors are concerned about the impact of GLP-1 drugs on food and beverage companies and fast-food chains. People who take these medications typically eat less frequently, have fewer cravings, and desire more protein and less sugary and fatty foods. Walmart U.S. CEO John Furner noted that people buying GLP-1 drugs from their pharmacies are purchasing less food, typically with fewer calories.
However, Nestle sees this as an opportunity to cater to these consumers through Vital Pursuit. The brand’s initial lineup will include frozen bowls with whole grains or protein-packed pasta, sandwich melts, and pizzas. These products will contain essential nutrients like protein, calcium, or iron. Nestle plans to sell Vital Pursuit items for $4.99 or less and offer gluten-free options.
While Vital Pursuit’s packaging won’t directly mention GLP-1 medications, Nestle intends to connect the brand to these drugs through social media. The company aims to provide consumers with a new tool that boosts their confidence and success on their weight loss and diabetes journey.
Nestle’s focus on health-conscious consumers is not new. In 2018, the company sold its U.S. candy business to Ferrero for $2.8 billion, signaling a shift towards healthier options. Nestle’s food business, which includes brands like Stouffer’s and Toll House, accounts for only 14.5% of its U.S. sales.
Although Nestle already owns Lean Cuisine, it decided to create a new brand, Vital Pursuit, to cater specifically to GLP-1 users. Lean Cuisine’s branding focuses on consumers looking to limit their calorie intake, which may not align with the nutritional needs of GLP-1 medication users. These individuals may require more nutrients, such as protein, to combat muscle loss associated with the drugs.
Nestle’s shares have experienced a 16% decline this year, resulting in a market value of $278 billion. The company anticipates slower global growth this year as inflation-weary consumers reduce their purchases of Nestle products.
In conclusion, Nestle’s launch of Vital Pursuit demonstrates its commitment to catering to the growing market of GLP-1 drug users. By offering frozen meals with essential nutrients and appealing flavors, Nestle aims to provide a convenient and satisfying option for individuals on their weight loss and diabetes journey.
