Slimfast has experienced a decline in sales due to the rising popularity of weight loss drugs like Ozempic.
Data from Glanbia, the owner of Slimfast, shows that consumption of the company’s meal replacement shakes in the US dropped by 33% between May and July.
This decline can be attributed to the increasing demand for drugs that aid in weight loss. Ozempic, a weekly injection manufactured by Novo Nordisk for individuals with type 2 diabetes, has garnered significant attention in the market. It is even reported to be used by celebrities in Hollywood.
However, a number of other weight loss drugs have also entered the market, leading to its estimated worth of $100 billion annually by the mid-2030s.
Mark Garvey, the Chief Financial Officer at Glanbia, acknowledged that these drugs have had a substantial impact on the weight management sector. He stated, “On the weight management side, that category has certainly been challenged. You’re seeing more weight management drugs out there, which is impacting the sector.”
This decrease in sales is consistent with last year’s 17% decline during the same period.
Despite its declining popularity, Slimfast still contributes 11% of Glanbia’s performance nutrition division.
Glanbia, an Irish company known for its protein shakes and supplements, intends to prioritize investment in its performance nutrition and healthy lifestyle brands in response to challenges in the diet market.
Glanbia reported profits of $214 million in the first half of the year, an increase from $158 million in the previous year. This was achieved despite a 10% drop in revenues to $2.8 billion as the company implemented cost-cutting measures.
The company has raised its forecasts for the full year, with adjusted earnings per share predicted to grow between 12% and 15%.
Glanbia’s CEO, Siobhan Talbot, announced her plans to step down after ten years in the role. Hugh McGuire, the current head of the performance nutrition business, will assume the position of chief executive in January.
Ms. Talbot commented, “I am pleased to report that Glanbia’s performance in the first half of the year exceeded our expectations. This was driven by a strong operating performance, continued demand for our better nutrition brands and ingredients, and the exceptional commitment of our people.”
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