Kellogg's, a company known for its frosted cornflakes for over a century, is spinning off its cereal business in favor of its faster-growing snack unit, renaming itself Kellanova in the process
J.M. Smucker recently purchased Twinkie maker Hostess Brands, signaling a growing trend of food companies expanding their snack portfolios
The snack industry's growth is driven by consumer habits, particularly among Millennials and Generation Z, who tend to snack more frequently, creating more opportunities for snacking occasions
Novo Nordisk's drugs, Ozempic and Wegovy, designed to help patients lose weight, could potentially affect the consumption of high-sugar and high-fat snacks, as they suppress appetites and may lead to aversions to such foods
The number of patients taking GLP-1 drugs like Ozempic and Wegovy is expected to increase significantly
potentially impacting the sales of companies producing snacks like Hershey, Mondelez, PepsiCo, General Mills, and Kellanova
Smucker's CEO Mark Smucker believes that there will continue to be demand for sweet snacks despite the rise of GLP-1 drugs
The high cost of GLP-1 drugs, around $1,000 per month, and limited insurance coverage could limit their accessibility to a broader population
Analysts suggest that lower-income individuals, who consume more junk food, are unlikely to be primary users of these drugs, which may mitigate their impact on snack sales
GLP-1 drugs require weekly injections, and their effects fade if patients stop taking them, potentially limiting their long-term impact on consumer behavior
Food companies are adapting to changing consumer preferences by investing in healthier snack options and research and development efforts to create healthier alternatives that mirror the taste of traditional snacks