Latest developments in causes and treatments



Is Ozempic Shrinking Profits for Snack Food Firms?

krispy kreme donuts in a box

We have been writing on AddictionNews and our companion blog, Childhood Obesity News, about Ozempic, Wegovy and other GLP-1 drugs that have shown remarkable results when used for weight loss. How remarkable? Krispy Kreme, the maker of irresistible deep-fried doughnuts, just had their stock downgraded by one Wall Street analyst firm due to the threat from GLP-1 drugs.

In a fascinating piece for Bloomberg, Joel Leon reports on the downgrading of Krispy Kreme by Truist Securities, and the subsequent 3.6% drop in share price. Leon reports:

The boom in weight-loss drugs has made analysts less certain on makers of sugary snacks. Earlier this month, Barclays Plc downgraded their recommendation on Swiss chocolate maker Barry Callebaut AG and German sugar firm Suedzucker AG.

The Krispy Kreme downgrade comes less than a month after a report from Walmart that customers purchasing GLP-1 drugs from their pharmacies have been buying “less units, less calories” in the rest of the store. The drop in junk food sales, however, has been more than made up for by the increase in prescriptions. Bloomberg reports that revenues from GLP-1 drugs exploded 300% from 2020 to 2022.

In an article for Axios, Emily Peck writes, “Increased use of these weight-loss drugs could hurt demand for high-calorie, high-fat and sugary foods — at home or at fast-food outlets.” Peck reports that a team of 17 Morgan Stanley financial analysts studied the impact of GLP-1 drugs on the food industry and they predict an astonishing 20% reduction in calories consumed by people using the drugs.

How are Ozempic and similar drugs able to achieve such dramatic impacts on weight loss? The answer lies in the ability of the drug to suppress the displacement mechanism, desensitizing consumers to cues that previously would have triggered a desire to overeat. “The method of action is theorized to be inhibition of the reward system. Yet, the common denominator of these behaviors may be the displacement mechanism,” says Robert A. Pretlow in “A Unified Theory of Addiction.”

We’ll continue taking a look at GLP-1 drugs here on AddictionNews, including reported side effects.

Written by Steve O’Keefe. First published November 2023.


“Krispy Kreme Drops on Worries Ozempic Will Hit Doughnut Demand,” by Joel Leon, Bloomberg via Yahoo Finance, October 30, 2023.

“Ozempic Is Making People Buy Less Food, Walmart Says,” Bloomberg, October 5, 2023.

“How weight loss drugs like Ozempic could radically reshape the food business,” by Emily Peck, Axios, October 6, 2023.

“A Unified Theory of Addiction,” by Robert A Pretlow, M.D., March 2023.

Image Copyright: dontree.


Your email address will not be published. Required fields are marked *