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FOCUS-Nestle, Coke take cautious approach to catering to Ozempic users
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FOCUS-Nestle, Coke take cautious approach to catering to Ozempic users
Jun 20, 2024 8:52 AM

NEW YORK, June 20 (Reuters) - Nestle's new food

brand for people taking weight-loss drugs like Wegovy will note

that the meals are high in protein, fiber and nutrients, but

will not name the blockbuster medications, a company executive

told Reuters.

The world's largest food maker is keeping the names of the

drugs off the packaging due to regulatory concerns, Tom Moe,

Nestle USA's president of meals, said in a recent interview.

Nestle will instead market its Vital Pursuit line of

$5-and-under frozen meals on social media, he said.

"We won't directly make the connection (to the drugs) on the

food package," Moe said.

Nestle's hesitancy to name drugs like Novo Nordisk's

Wegovy and Ozempic on its packaging shows the

uncertainty facing global food companies as they place big bets

on selling products specifically geared toward millions of

people taking the appetite-suppressing medicines.

The medications, from a class of drugs known as GLP-1

agonists, threaten to dent profits of snack-makers and fast food

chains as people taking them cut way back on the amount of food

they consume.

When its fajita melts and pizzas hit store freezers this

autumn, Nestle will face a sea of competitors making specific

claims about their products targeting people on the medications.

The maker of Biocare, a drink that sells for $4.50 per

serving, touts on the packaging that it can "alleviate side

effects" such as nausea, for people taking semaglutides, a

reference to the active ingredient in Wegovy and Ozempic.

The medications can cause gastrointestinal side effects, but

doctors recommend people using them keep eating, especially

protein-rich foods, to maintain energy and avoid losing muscle.

Herbalife ( HLF ) pitches shakes sold in a bundle for

$185.10 that it claims can help people achieve their nutritional

needs while on "the shot," as the injectable drugs are sometimes

colloquially called.

Retailers like supplement-seller GNC are also looking to

capitalize on the trend by introducing a section in stores

dedicated to GLP-1 users, selling protein powder and fiber.

Referencing the weight-loss drugs on packaging for Vital

Pursuit products could expose Nestle to regulatory scrutiny.

"We're not a medication, we're a food product," Moe said.

Referring to the medications could suggest that the food

somehow treats or prevents disease, claims only products

approved by the U.S. Food and Drug Administration can make, said

Lauren Handel, an attorney specializing in food.

"It's a tricky area where you'd want to be careful about

what you say," Handel said. "The safest course of action is not

to mention any drugs."

The same rules apply to advertising, she said. Labeling

items as "suitable for people on a diet" or as "companions" to

the medications may comply with FDA regulations. "Some companies

will take more risk," she said.

Nestle declined to say whether it will refer to the drugs in

advertisements.

'ABSOLUTE GAME CHANGER'

Herbalife ( HLF ) is taking a more direct approach, saying on

Facebook: "Using a GLP-1 weight-loss drug? Support your

nutritional needs by using Herbalife's ( HLF ) GLP-1 Companion Pack."

Herbalife ( HLF ) Chief Commercial Officer Frank Lamberti said the

company chose GLP-1 instead of recognizable brand names like

Ozempic to avoid alienating people taking rival drugs, such as

Eli Lilly's ( LLY ) Mounjaro and Zepbound, or who have quit

taking the medications but still watch their weight.

Robard Corp, which makes Biocare, said it is marketing the

drink through a "strong influencer community who are all taking

GLP-1s."

Biocare influencer Ashley Dunham of Jacksonville, Florida,

said in a TikTok video the product has been an "absolute game

changer" when it comes to maintaining her weight after losing

100 pounds (45.4 kilograms).

Coca-Cola and yogurt-maker Danone say many

of their products are perfect for people taking the medications

because they are either low in sugar or high in protein.

Coke's Fairlife shakes, with up to 42 grams of protein, are

frequently touted on social media by people using the

medications.

Fairlife does not have any paid partners or influencers who

link the shakes with GLP-1s or weight loss, and does not target

them with free products or other incentives, a spokesperson

said, adding that the company has heard from consumers using the

medications that they like the shakes.

Healthy Choice meal maker Conagra Brands ( CAG ) also will

keep drug names off packaging for food marketed to people using

the medications, executives told Reuters this month.

Using the names could turn off those who aren't taking the

drugs but would still consider buying the food, said Megan

Bullock, a director of strategic insights at Conagra.

Conagra will focus on attributes of its existing products

such as protein or fiber content to help consumers using GLP-1s

make the connection that the food is suitable for them, said Bob

Nolan, the company's vice president of demand science.

Conagra is not currently developing new brands for people

using the medications but executives have said it sees

opportunity to sell more frozen meals to them.

Kelli Frias, a marketing professor at American University,

said consumers do not yet have clear ideas of what to eat while

on the medications.

Food companies are "trying to create new associations," she

said. "We don't have those associations in our mind until we're

taught them."

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