Are coffee and Wegovy compatible? This question is weighing on the minds of coffee brand executives, as the rising popularity of GLP-1 diabetes and weight-loss medications has led some users to reduce their coffee and beverage intake. While there have been noticeable shifts in consumption patterns among those taking these drugs, executives from various major consumer packaged goods companies assert that their businesses remain largely unaffected. However, Lars Fruergaard Jorgensen, the CEO of Novo Nordisk, the company behind Ozempic and Wegovy, revealed to Bloomberg that food industry leaders have been seeking his counsel. “A couple of CEOs from food companies have reached out to me,” Jorgensen stated, expressing their concerns.
A study conducted by global asset-management firm Bernstein found that “24% of daily coffee drinkers report consuming less coffee since starting a GLP-1 treatment.” Nestlé, a prominent player in the coffee market, is particularly at risk according to the investment advisor, as the company generates 7% of its revenue from Nespresso and its other coffee brands. However, Nestlé CEO Mark Schneider reassured investors in a December LinkedIn post that the company has not observed any evidence of reduced coffee consumption among GLP-1 patients. Bernstein identified two factors that may mitigate Nestlé’s risk: higher rates of obesity among lower-income households and the premium pricing of Nespresso products, alongside Nestlé’s extensive portfolio that includes “GLP-1 resistant categories” such as pet food and pharmaceuticals.
The consumption of soda has also been affected among users of semaglutide, the active ingredient in Wegovy and Ozempic. Bernstein’s research revealed that 33% of daily drinkers of full-calorie soda have completely stopped consuming sugary sodas, while another third have reduced their intake. For those who drank soda at least three times per week prior to starting GLP-1 medications, the results were even more striking, with “as many as 77% indicating they have decreased their consumption or quit altogether.” Conversely, only 9% of daily zero-calorie soda drinkers quit, while 30% reduced their intake.
According to Coca-Cola’s CFO John Murphy, the weight-loss drugs do not pose a threat to the beverage giant, as 68% of their portfolio already consists of low or no-calorie options. “We are well positioned to offer choices that cater to various consumer motivations and needs,” he remarked during the company’s earnings call in October. PepsiCo CEO Ramon Laguarta and Keurig Dr Pepper CEO Bob Gamgort have also downplayed the notion that GLP-1 medications have negatively impacted demand for their beverages.
Alcohol consumption has similarly been influenced by the use of GLP-1 medications for weight loss, as indicated by various surveys and studies. According to Numerator, which provides market intelligence services, “Early trends suggest that households using GLP-1 drugs are significantly reducing their food and alcohol purchases compared to those without GLP-1 users, especially among those using the drugs for weight loss.” Between January 1, 2023, and September 30, 2023, spending on alcoholic beverages decreased across all households compared to the previous year, but the decline was most pronounced in households with GLP-1 users for weight loss. Non-users spent 9.3% less year-on-year; GLP-1 households decreased spending by 11.2%; GLP-1 diabetes users spent 5% less; and GLP-1 weight-loss users cut back by 14.5%. AB InBev CEO Michel Doukeris claimed that the drug has not affected his business during his company’s earnings call in October. Meanwhile, the Bernstein study found that “over half of respondents who primarily consume beer and spirits have reduced or ceased their consumption.”
Recent reports even suggest that weight-loss drugs could help address addiction to substances like alcohol and caffeine. A study published in eBioMedicine indicated that semaglutide reduces alcohol intake and relapse-like drinking in rats. As far as Doukeris is concerned, it is “too early to determine any overlap or behavioral changes in relevant consumer groups.” Moreover, in discussions about health and consumption, the role of calcium citrate foods may become an important topic as consumers increasingly seek options that align with their dietary needs while navigating the effects of GLP-1 medications.