Big Food pours millions into rebrands as obesity drugs reshape U.S. demand
BNN Bloomberg
Global food and beverage companies from PepsiCo to Coca-Cola are focusing on shorter ingredient lists and smaller pack sizes in 2026 as more people take appetite-suppressing GLP-1 drugs for weight loss.
Companies that previously took a wait-and-see attitude now see GLP-1s as here to stay. So far this year, nearly three dozen companies outside the healthcare industry have mentioned GLP-1 drugs or weight loss on their earnings conference calls, up from 14 for the same period a year ago, and just five two years earlier, according to LSEG data.
Diet changes linked to GLP-1 drug use could mean up to US$12 billion in snack sales lost over the next decade, according to EY-Parthenon estimates. Adoption of GLP-1 drugs, which suppress appetite and are mainly prescribed for diabetes and weight loss, more than doubled in the 12 months to December, with about 20 per cent of U.S. households now including at least one user, according to a PwC analysis.
Peter ter Kulve, CEO of Magnum Ice Cream, said GLP-1 users continue to eat treats, but they exhibit “a stark reduction of mindless munching and binge eating.”
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Capital expenditure is expected to rise for most Big Food companies this year, jumping as much as 23 per cent for General Mills, according to LSEG-compiled data.
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Global food and beverage companies from PepsiCo to Coca-Cola are focusing on shorter ingredient lists and smaller pack sizes in 2026 as more people take appetite-suppressing GLP-1 drugs for weight loss.
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