Nestle is launching a new frozen food brand called Vital Pursuit, targeting the growing market of consumers using GLP-1 drugs like Ozempic and Wegovy. These weight loss and diabetes medications have gained popularity with celebrities endorsing them and one in eight U.S. adults having used them at some point. Currently, around 6% of U.S. adults are using these drugs, with projections suggesting that the number could reach 31.5 million, or 9% of the population, by 2035. Investors are concerned about the impact of these drugs on food and beverage companies, as users typically eat less and prefer protein-rich, less sugary foods.
Nestle sees an opportunity to cater to GLP-1 users through Vital Pursuit, offering frozen bowls with whole grains or protein-packed pasta, sandwich melts, and pizzas. These products are designed to contain essential nutrients like protein, calcium, and iron. Priced at $4.99 or under, with gluten-free options available, the brand aims to provide options for consumers following a GLP-1 treatment journey. While the packaging won’t directly mention GLP-1 medications, Nestle plans to connect the brand to the drugs on social media. The new line is expected to be available in the fourth quarter of the year.
In recent years, Nestle has shifted its focus towards health-conscious consumers, selling its U.S. candy business in 2018 and emphasizing brands like Stouffer’s and Toll House. The decision to launch Vital Pursuit alongside its existing brand Lean Cuisine, which has been positioned as a lower-calorie option, reflects the specific nutritional needs of GLP-1 users. Research shows that these consumers require certain nutrients like protein to maintain their health while on the medication, hence the creation of a new line catered to their needs.
Despite its efforts to tap into the health-conscious market, Nestle has experienced a decline in shares and market value this year. The company expects global growth to slow as inflation-weary consumers decrease their purchases of its products. To adapt to changing consumer preferences and demands, Nestle continues to innovate and expand its product offerings, such as the introduction of Vital Pursuit to target specific segments like GLP-1 users. By identifying emerging trends and tailoring its products to meet evolving consumer needs, Nestle aims to maintain its position in the competitive food and beverage industry.
Overall, the launch of Vital Pursuit represents Nestle’s strategic response to the growing market of GLP-1 drug users, offering options that align with their dietary preferences and nutritional requirements. By introducing a new brand focused on essential nutrients and catering to the unique needs of these consumers, Nestle aims to capitalize on this trend and provide value to a specific segment of the market. As consumer preferences continue to evolve towards healthier options, companies like Nestle are adapting their offerings to meet changing demands and stay relevant in the competitive food industry.
