Nestle aims to create new products for weight-loss drug users
Nestle is aiming to transform the emergence of GLP-1 weight-loss medications from a potential challenge into a lucrative business prospect. The company is leveraging artificial intelligence and nutritional science to create products targeted at the millions of consumers utilising medications like Ozempic and Wegovy. The swift uptake of pharmaceuticals produced by Novo Nordisk and Eli Lilly has intensified investor apprehensions that appetite-suppressing medications may lead to a lasting decline in the demand for packaged foods, snacks, and beverages. Nestle posits that the pharmaceuticals are fostering a nascent market for offerings aimed at mitigating the adverse effects associated with swift weight reduction. Chief Technology Officer Stefan Palzer informed that Nestle is employing AI and various technologies to analyse clinical research, identify nutrient combinations, and create products specifically designed for GLP-1 users. “We are well positioned with the portfolio. It’s a huge opportunity for our company,” he said. Presentation materials shown detailed side effects associated with rapid weight loss, including muscle loss and the loss of facial fat often referred to as “Ozempic face,” and outlined areas where Nestle believes its products can help address them.
The GLP-1 market is characterised by the dominance of Eli Lilly’s Mounjaro and Zepbound, alongside Novo Nordisk’s Wegovy and Ozempic. Approximately 16 million Americans are currently utilising GLP-1 medications, as reported by Boston Consulting Group, with projections indicating a significant increase by the conclusion of the decade. Nestle’s response has been to develop products tailored to the needs of weight-loss drug users while employing AI to expedite research, product development, and consumer analysis. Palzer stated that Nestle’s scientists have been examining the effects of rapid weight loss and creating products aimed at assisting consumers in managing these effects. The company is employing AI tools to analyse extensive amounts of clinical research and pinpoint combinations of nutrients that could potentially aid in muscle health, hydration, and nutritional intake. Nestle has initiated the incorporation of collagen protein into offerings under its Vital Proteins brand to tackle issues related to skin, hair, and nail health associated with rapid weight loss. “A big part of weight loss is that people lose lean muscle mass,” Palzer said. “We found a combination of two micronutrients which we industrialized that stimulate the growth of muscle tissue. On one hand you provide protein, on the other hand you stimulate the muscle tissue to grow back faster.”
Palzer stated that Nestle has patented combinations of proprietary ingredients aimed at reducing appetite in consumers who frequently encounter heightened hunger following the cessation of GLP-1 treatments. The company has already introduced products targeted at GLP-1 users. Nestle’s U.S. business introduced Boost Advanced Nutrition Shake, which is promoted as having 35 grams of protein to aid muscle health during weight loss. In Asia and Australia, Nestle has launched a higher-protein variant of its Milo malt drink, named Milo PRO High Protein. Competing ice cream manufacturers are grappling with similar challenges, opting for higher-protein offerings, reduced portion sizes, and more straightforward ingredient compositions. AI is increasingly influential in that process. Nestle has established internal systems to analyse scientific literature, simulate consumer behaviour, identify emerging trends, and assist product developers in navigating a database of approximately 120,000 recipes. Among those tools is an internal platform known as Food Genie, which Palzer indicated assists scientists and product developers in forecasting the performance of recipes and pinpointing opportunities for reformulation.
“You can imagine if you’re a small company you have only a thousand recipes. It’s very difficult to model and predict recipes using AI,” he said. “AI needs data.” Nestle is also testing AI-driven consumer simulations aimed at predicting shopper responses to new products and health claims prior to their market introduction. AI is tracking social media to spot emerging consumer trends. “You see noise around certain topics and then you can conclude whether that’s a lasting trend or not,” Palzer said. “Increasingly AI will get into this field.” Some nutrition experts express scepticism regarding the purported benefits of specialised products compared to traditional foods. “It’s quite sad that we turn to new products all the time that are more expensive than whole, fresh food that also contain the same protein and nutrients,” said Amanda Avery. She observed that meat, fish, eggs, dairy products, beans, nuts, and pulses continue to serve as relatively affordable sources of protein and nutrients. Nonetheless, Avery indicated that products explicitly targeted at GLP-1 users are expected to attract consumers. “Sadly, we are quite influenced by marketing,” she said. “Nestle will have done their research.”
