Nestlé turns the boom in weight loss jabs into a business of its own

The short version

• Nestlé is developing products aimed at the side effects of weight loss jabs such as Ozempic and Wegovy, among them collagen products and protein shakes.
• For new recipes the group draws on a database of around 120,000 templates and on an internal platform called Food Genie.
• No revenue figures for the new products have been published so far, and the group calls the outlook an opportunity, not a forecast.

Nestlé does not want to treat the success of weight loss jabs such as Ozempic and Wegovy as a threat, but to earn from it. The Swiss food group is using artificial intelligence to develop products tailored to the side effects of these medicines.

It is a huge opportunity for the company, technology chief Stefan Palzer told the news agency Reuters.

The products made by Novo Nordisk and Eli Lilly curb appetite and lead to rapid weight loss. Unwanted consequences often follow, such as loss of muscle mass or slacker facial skin, described on social networks as Ozempic face.

That is exactly where the group comes in. Already on the market are products with collagen protein for skin and hair as well as a protein shake meant to prevent muscle loss. In addition, according to Palzer, Nestlé has developed patented combinations of active ingredients intended to dampen hunger after the medicines are stopped.

Software searches 120,000 recipe templates

Artificial intelligence plays a key role in development. The group uses internal systems, among them a platform called Food Genie, to analyse large volumes of data from clinical studies and to identify combinations of nutrients.

Developing new recipes draws on a database of around 120,000 templates. The software also helps to simulate consumer behaviour and to spot trends on social networks before they turn into mass phenomena.

With this the group is responding to a development that affects the food industry as a whole. Millions of people eat less and eat differently under the influence of these medicines. For makers of snacks, confectionery and ready meals that means falling volumes.

Criticism of the marketing

Not every observer regards the approach as unproblematic. A quoted specialist conceded that Nestlé will probably succeed with its strategy, but pointed to the influence of advertising on buying decisions. Unfortunately consumers are strongly swayed by marketing, she said, and Nestlé will have done its homework.

The point touches an issue that comes up regularly with such products. Whether a protein shake really prevents muscle loss depends on quantity, composition and the rest of a person's behaviour. Proving an effect is considerably harder for foods than for medicines, because the requirements placed on studies are lower.

Another building site in Russia

For the group this is not the only news of the day. According to press reports Nestlé risks losing control of its business in Russia.

Both reports show the position of a group working on two fronts at once. On one side it is trying to shape a new growth field out of a threat. On the other it is managing the consequences of geopolitical shifts in individual markets.

For judging the strategy it will be decisive what revenue the new products actually generate. No figures on that are available so far. The group calls the outlook an opportunity, not a forecast.

Frequently asked questions

What products is Nestlé developing around weight loss jabs

Already on the market are products with collagen protein for skin and hair as well as a protein shake meant to prevent muscle loss. In addition, according to technology chief Stefan Palzer, Nestlé has developed patented combinations of active ingredients intended to dampen hunger after the medicines are stopped. The group speaks of a huge opportunity.

What side effects do Ozempic and Wegovy have

The products made by Novo Nordisk and Eli Lilly curb appetite and lead to rapid weight loss. Unwanted consequences often follow, such as loss of muscle mass or slacker facial skin, described on social networks as Ozempic face. It is precisely these consequences that Nestlé is targeting with its products.

How does Nestlé use artificial intelligence in development

The group uses internal systems, among them a platform called Food Genie, to analyse data from clinical studies and to find combinations of nutrients. Developing new recipes draws on a database of around 120,000 templates. The software also simulates consumer behaviour and spots trends on social networks early.

How much revenue do the new products bring

No figures on revenue from the new products are available so far. Nestlé calls the outlook an opportunity and not a forecast. For judging the strategy it will be decisive what income actually arises, especially as proving an effect is harder for foods than for medicines.

This analysis is for information only and is not investment advice.