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The manufacturers of Pepsi and Walkers Crisps are “investigating” the effects of weight reduction medications on their sales, with US behemoth Walmart asserting that consumers of these medications are purchasing less food.
PepsiCo Chief Financial Officer Hugh Johnston stated that it was still in the preliminary stages of comprehending the influence of weight-loss solutions like Wegovi on sales. However, he added: “We are closely analyzing it for obvious reasons.”
This comes after US retail giant Walmart claimed last week that individuals who were taking appetite suppressants were buying fewer groceries from its stores.
Walmart US Chief Executive John Ferner mentioned that the company is monitoring the expenditures of individuals who purchase prescription weight-loss drugs from its pharmacies.
Mr. Ferner stated that these individuals were consuming “slightly fewer calories” compared to those who were not using the drug.
Investors sold off shares of major snack and carbonated drink manufacturers in response to these remarks.
PepsiCo, which also produces other items including Doritos and Quaker Oats, experienced a decrease of approximately 5 percent last week. Coca-Cola reached its lowest level in a year, while McDonald’s and US chocolate manufacturer Hershey also closed lower this week.
PepsiCo Chief Executive Officer Ramon Laguarta mentioned on a call with analysts Tuesday: “Of course, we are monitoring the development of these new drugs and their potential impact. “So far, the impact is insignificant.”
Wegovi was authorized for use in the UK last month to combat obesity and is already accessible in the US.
Ozempic, another appetite suppressant medication, is rumored to be widely used in Hollywood for weight reduction, although its primary purpose is to help individuals with diabetes manage the condition.
This new generation of weight loss drugs, known as semaglutide, have been acclaimed as “miracle” medications due to their effectiveness in aiding weight loss.
Mr. Johnson and Mr. Laguarta’s comments about the medications came as PepsiCo announced its increased emphasis on zero-sugar beverages and portion control packages in response to evolving consumer preferences.
The company raised its annual profit forecast for the third time this year, despite rising prices as shoppers continued to purchase its products.
Analysts from Citi stated that the results indicated that concerns regarding the impact of appetite suppressants on PepsiCo’s sales were “overstated”.