The hype frenzy set off by GLP-1 diet pills is spreading to almost every field. Since this type of drug has the function of reducing users' appetite, many investors are worried that the performance of food companies will be impacted.
However, Coca Cola doesn't seem to care. The company's CFO John Murphy recently told the media that more than two-thirds of its product portfolio consists of low-calorie and no-calorie products. No significant effects have been seen from these drugs, and Coca Cola can continue to provide products for consumers who want to control their calorie intake.
In the three months to the end of September, the average price of Coca Cola products increased by 9%, sales volume increased by 2%, and overall revenue increased 8% year over year, reaching $12 billion, exceeding analysts' expectations. Shows the strong stickiness of “Fat House Happy Water.”
The company has raised its annual revenue guidelines from 8%-9% to 10%-11%.
John Murphy said:
“Our overall beverage strategy allows us to prepare solutions to these topics as they arise... Today, 68% of our product portfolio is low or no calorie.”
Some analysts previously warned that the growth prospects of drugs such as Wegovy and Ozempic could hurt sales of packaged foods and beverages.
At the beginning of October, Walmart CEO John Furner said that customers taking obesity drugs bought less food, which led to a slight sell-off in food consumer stocks. The stock prices of Pepsi and Coca Cola both fell by about 5% over the next few days.
Earlier, PepsiCo's chief financial officer Hugh Johnston also pointed out that currently, the company's products have not been affected by GLP-1 drugs. He believes that the promotion of GLP-1 diet pills is very slow.
Early studies and predictions suggest that consumers taking these drugs are more likely to eat healthier, full-nutritional foods and reduce foods high in salt, sugar, and fat. According to Morgan Stanley, patients taking this medication can reduce their daily calorie intake by up to 30%.