New drug could slow fast food consumption

The junk food industry faces a new crisis in America. Consumption levels are declining because of the arrival of Ozempic (produced by Novo Nordisk) and other weight-loss medications that are very effective in suppressing appetite. These drugs have the potential to substantially reduce obesity and related medical problems such as diabetes. An estimated seven percent of the US population will be taking these drugs by 2035.

The food industry is confronted with reduced demand. Most vulnerable are those companies that profit from excessive eating, especially the snack food sector, such as Mondelēz International. Until lately, companies such as these were riding high as Americans boosted their junk food consumption during the pandemic. Kellogg's was even pressed by Wall Street to split into two so that its faster growing snack business (Pringles, Cheez-It, etc.) would not be held back by the less dynamic breakfast cereal operation. The separation was completed in October 2023, but now the new Kellanova snack company may be less profitable.

Big food companies are constantly evolving their products to adapt to consumer trends. But most of the time this doesn't work. Packaged food companies have paid out millions of dollars in class action lawsuits accusing them of making unsubstantiated health claims for their products. For example, Kellogg’s (and now Kellanova’s) Nutri-Grain bars are widely criticized for being high in sugar and low in fiber.

The best outcome would be if those freed from their addiction to junk food shift their diet to fresh foods, and the leading packaged brands vanish from the market because nobody buys their fatty stuff.