Nestle targets new products for users of weight-loss drugs

Veyvey — Nestle is seeking to turn the rise of GLP-1 weight-loss drugs from a threat into a business opportunity, using AI and nutritional science to develop products aimed at millions of consumers taking medicines such as Ozempic and Wegovy .

The rapid adoption of drugs made by Novo Nordisk and Eli Lilly has fuelled investor concerns that appetite-suppressing medicines could permanently reduce demand for packaged foods, snacks and beverages.

Nestle believes the drugs are also creating a new market for products designed to address the side effects of rapid weight loss.

Chief technology officer Stefan Palzer said Nestle was using AI and other technology to analyse clinical research, identify nutrient combinations and develop products tailored to GLP-1 users.

“We are well positioned with the portfolio. It’s a huge opportunity for our company,” he said.

Presentation materials detailed side effects associated with rapid weight loss, including muscle loss and the loss of facial fat often referred to as “Ozempic face“, and outlined areas where Nestle believes its products can help address them.

The GLP-1 market is dominated by Eli Lilly’s Mounjaro and Zepbound and Novo Nordisk’s Wegovy and Ozempic .

About 16-million Americans are taking GLP-1 medicines, according to Boston Consulting Group, a figure expected to rise sharply by the end of the decade.

Nestle’s response has been to develop products tailored to the needs of weight-loss drug users while using AI to accelerate research, product development and consumer analysis.

Palzer said Nestle’s scientists have been studying the consequences of rapid weight loss and developing products designed to help consumers manage them.

The company is using AI tools to process large volumes of clinical research and identify combinations of nutrients that may help support muscle health, hydration and nutritional intake.

Nestle has begun adding collagen protein to products under its Vital Proteins brand to address concerns around skin, hair and nail health linked to rapid weight loss.

“A big part of weight loss is that people lose lean muscle mass,” Palzer said.

“We found a combination of two micronutrients which we industrialized that stimulate the growth of muscle tissue. On one hand you provide protein, on the other hand you stimulate the muscle tissue to grow back faster.”