April 16, 2024

Pots of Activia yoghurt, manufactured by Danone SA, sit on display.

Bloomberg | Getty Images

The CEO of French consumer goods giant Danone downplayed the threat of obesity drugs on its food business, arguing that consumers were likely to turn to healthy products as part of their new weight loss regime.

Antoine de Saint-Affrique said that surging demand for drugs like Wegovy and Mounjaro would only increase consumer appetite for more nutritional products.

“We see ourselves as extremely complementary to GLP-1s,” de Saint-Affrique told CNBC’s Charlotte Reed Wednesday.

GLP-1s, or glucagon-like peptide 1 agonists, are the underlying class of drugs in weight loss injections such as Wegovy and Mounjaro. They work by mimicking appetite regulating hormones in the body and effectively reducing hunger levels.

The rapid rise of such drugs has prompted concern among food makers, who fear falling sales as consumer appetite wanes. The CEO of Wegovy maker Novo Nordisk said in February that he was fielding calls from “scared” food chiefs asking how the new pharmaceutical class might affect their businesses.

However, de Saint-Affrique said that Danone’s products, which include Activia yoghurts and Alpro plant-based milks, would be an important component of consumers’ new diets.

“We provide protein and protein that you cannot find naturally,” he said. “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 said.

“We are actually at the heart of what is needed when you’re using something like GLP-1,” de Saint-Affrique added.

Analysts at financial services research firm Kepler Cheuvreux said in a research note last month that concerns over the impact of GLP-1s on the consumer goods market may be overblown, particularly in the nutritional foods space.

“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 consumer equities, wrote 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 added.

Kepler Cheuvreux named Danone and Swiss food maker Nestle as possible beneficiaries in the new consumer goods landscape. Jefferies last month also named Danone as a buy amid a wider downturn in the food sector as consumers cut back spending in the face of high inflation.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Batman138 Bro138 Dolar138 Gas138 Gudang138 Hoki99 Ligaciputra Panen77 Zeus138 Kilat77 Planet88 Gaspol168 Sikat88 Rupiah138 Garuda138 Gacor77 Roma77 Sensa138 Panen138 Slot138 Gaco88 Elanggame Candy99 Cair77 Max7 Best188 Space77 Sky77 Luxury777 Maxwin138 Bosswin168 Cocol88 Slot5000 Babe138 Luxury138 Jet77 Bonanza138 Bos88 Aquaslot Taktik88 Lord88 Indobet Slot69 Paus138 Tiktok88 Panengg Bingo4d Stars77 77dragon Warung168 Receh88 Online138 Tambang88 Asia77 Klik4d Bdslot88 Gajah138 Bigwin138 Markas138 Yuk69 Emas168 Key4d Harta138  Gopek178 Imbaslot Imbajp Deluna4d Luxury333 Pentaslot Luxury111 Cair77 Gboslot Pandora188 Olxtoto Slotvip Eslot Kuy138 Imbagacor Bimabet