Sluggish salty snack sales have prompted questions about whether Ozempic and obesity treatments like Wegovy and Zepbound ae to blame. GLP-1 drugs have been cheered as an effective method to help patients with diabetes and obesity to manage their blood sugar levels, hunger and weight. Patients on these drugs eat less and develop an aversion to snacking.
A Morgan Stanley survey conducted last year found people on these drugs cut back on confections by 66% , cookies by 65% and carbonated and sugary drinks by 65%. But investors have become increasingly worried that the growing usage of such drugs could pressure sales for food and beverage companies like Pepsi . With brands such as Doritos, Fritos and Lay's, Pepsi is the leader of a category that also includes UTZ Brands and Campbell Soup's Cape Cod potato chips.
However, a team of Barclays analysts led by Lauren Lieberman recently concluded that investors may be losing unnecessary sleep over these concerns. Specifically, the analysts examined Pepsi's "Summer of Lay's" promotion, which lowered prices on an 8-ounce bag of Lay's potato chips to $2 from $3.50.
Lieberman found that the temporary price reduction at Wal-Mart stores drove an increase in both the product's volume and sales, leading to the conclusion that snack sales were hurt by price pressures for consumers. "All said, the data suggests to us that the primary challenge facing the salty snack category is affordability and arguably not GLP-1s and evolving health & wellness.