Weight Loss Jabs Impacting Greggs, CEO Reveals
The CEO of Greggs, Roisin Currie, has acknowledged the significant impact that popular weight loss jabs are having on consumer behavior and the company’s performance. The rise of appetite suppressing medications has resulted in many customers opting for smaller portions, which has directly influenced Greggs’ sales figures.
Changes in Consumer Demand
– Healthier Options: As more consumers seek healthier choices, Currie noted an increasing demand for protein and fiber in their diets. This shift has prompted Greggs to innovate by introducing new products that align with these dietary trends.
– Menu Adjustments: The bakery chain has moved away from its traditional offerings of high-fat pastries and cakes, adapting to the evolving preferences of its customer base.
Financial Implications
Currie reported that Greggs is experiencing a challenging period, with disappointing profits and a cautious outlook for the upcoming year. The comments underscore a broader health trend impacting not just Greggs, but the entire food sector.
Targeting Weight Loss Drug Users
– Strategic Changes: In response to the demand driven by weight loss treatments, Greggs announced plans to cater specifically to customers using GLP-1 drugs by offering smaller portion sizes and protein-rich products. This strategy was exemplified by the recent launch of their egg-pot, part of the eggs at Greggs ad campaign.
– Consumer Insights: We must ensure that we have snack options that resonate with customers on GLP-1 treatments, Currie emphasized.
Industry-Wide Trends
Several companies are noticing a shift in consumer appetites due to weight loss drugs. For example:
– Tesco’s Response: Chief Executive Ken Murphy reported that the supermarket chain is closely monitoring changes in customer habits alongside the surge in weight loss medications. Tesco is diversifying its range to include GLP-1 friendly products, with a notable increase in fresh food sales throughout the year.
– Analyst Insights: Clive Black, a consumer analyst from Shore Capital, highlighted that a slight decrease in grocery sales during Christmas may indicate the influence of GLP-1 drugs on eating habits.
The Role of Shrinkflation
Additional factors, such as shrinkflation, are also contributing to smaller portions across various products. Manufacturers are reducing serving sizes while maintaining prices as a response to rising ingredient costs.
Regulatory Changes
New regulations in the UK aim to reduce obesity rates by banning junk food advertisements before 9 PM, further impacting consumer choices.
The landscape of eating habits is undeniably shifting, influenced by weight loss medications and evolving health trends. Businesses like Greggs are adapting to meet customer needs, highlighting the intersection of health and consumer choices in today’s market.