Nestle SA CEO Mark Schneider downplayed the impact of GLP-1 weight-loss drugs on the world’s largest food company, emphasizing the company’s focus on expanding its range of products with reduced calorie content.
In a Bloomberg TV interview, Nestle CEO Mark Schneider revealed that currently, 50% of the company’s revenue comes from coffee, pet care, and vitamins, compared to 30% seven years ago. These sectors are anticipated to demonstrate greater resilience, especially as individuals using weight-loss drugs curtail snacking and decrease meal sizes.
“It’s not so much a threat,” he said. “It’s a full-blown vindication of the strategy that we’ve been pursuing very patiently over the years.”
The producer of Lean Cuisine meals has been divesting from less lucrative ventures while acquiring those with higher growth potential. Schneider mentioned engaging in deals totaling “50 billion” and opting out of an additional 50 billion, without specifying the currency. He anticipates the company’s vitamins, minerals, and supplements business to experience growth in the mid- to high-single digits.
