An end may be in sight to America’s national obesity epidemic. However, a slimline population probably isn’t healthy for the fat profits of some of the country’s best-known consumer brands.
That’s the implication being drawn from comments by Walmart Inc (NYSE:WMT).’s US chief executive, John Furner, who said the rise of weight-loss drugs like Ozempic and Wegovy was prompting consumers to cut back on calorie-laden products.
Following Furner’s appearance on Bloomberg TV on Thursday stock in the world’s largest retailer fell 1.2%. Shares in Coca-Cola Co. and PepsiCo (NASDAQ:PEP) Inc ended a lively session down 4% and 5% respectively.
Analysts already raised the alarm that consumer trends may change in this way as weight-loss drugs gain in popularity.
A report from Morgan Stanley (NYSE:MS) suggested food and drink manufacturers would be affected by the new wave of weight loss drugs.