Weight-Loss Medications Impact Coca-Cola, PepsiCo and Food Stocks

The Coca-Cola Company, PepsiCo and other food and beverages companies experienced stock market losses due to the increasing popularity of weight-loss drugs.

“We definitely do see a slight change compared to the total population, we do see a slight pullback in the overall basket,” John Furner, CEO, Walmart, tells Bloomberg. He notes a subtle change in consumer behavior, indicating a slight reduction in overall purchasing patterns among the population.

The retail giant is actively examining alterations in sales trends using anonymized data, delving into the shopping habits of individuals taking certain drugs, including Novo Nordisk's weight loss drug Wegovy and diabetes treatment Ozempic. Wegovy and Ozempic work partly by reducing appetite and food intake, according to the US Food and Drug Administration (FDA). Furner emphasized the need for caution in drawing definitive conclusions at this early stage.

Projections suggest that over the next decade, about 7% of the US population could be using obesity-related medications. This data holds significance for the food sector, particularly for manufacturers of high-fat or high-sugar products. 

It is anticipated that individuals resorting to these medications may consume roughly 20% fewer calories, indicating a potential impact on dietary preferences and, consequently, the food industry, according to El Financiero. 

The Danish drugmaker Novo Nordisk now expects 2023 sales growth in local currencies of 32% to 38%, up from the previous outlook of 27% to 33%, according to a press release. “The sales outlook for 2023 is updated, primarily reflecting higher full-year expectations for Ozempic volumes sold in the US and gross-to-net sales adjustments for Ozempic and Wegovy in the US,” it reads. 

In Mexico, Coca-Cola FEMSA witnessed a 6.91% decrease in its stock value over a 30-day period, while Cultiba, the Mexican bottler for Pepsi, faced a 10.12% dip within the same timeframe. Bimbo, a producer of cookies and sweet bread, saw a 5.77% reduction. Meanwhile, Novo Nordisk stocks have gone up 7.71% in the last month.