Yahoo Finance Slimfast suffers as dieters turn to Ozempic
Slimfast has suffered a drop in sales as dieters turn to blockbuster drugs such as Ozempic to lose weight.
Consumption of Slimfast’s meal replacement shakes dropped by a third in the US from May to July, according to new figures from owner Glanbia.
It comes amid a boom in demand for drugs which result in weight loss, many of which have taken the diet market by storm.
Ozempic, a drug given to people with type 2 diabetes which is being used off-prescription, is a weekly injection made by Danish pharmaceutical giant Novo Nordisk.
It is the most prominent of the new drugs.
Boris Johnson has admitted to taking the jab, which is reportedly widely used in Hollywood.
However, a flurry of rivals has emerged, creating a market estimated to be worth $100bn annually by the mid-2030s.
Mark Garvey, chief financial officer at Glanbia, said the drugs were already significantly impacting the US market.
He said: “On the weight management side, that category has certainly been challenged. You’re seeing more weight management drugs out there, which is impacting the sector.”
The latest fall in sales for Slimfast follows a 17pc decline during the same period last year.
Despite its waning popularity, the meal replacement product still makes up 11pc of Glanbia’s performance nutrition division.
The Irish company, which also makes protein shakes and other supplements, plans to prioritise investment in its performance nutrition and healthy lifestyle brands amid challenges in the diet market.
It came as Glanbia reported profits of $214m in the first half, up from $158m the year before. That was despite a 10pc drop in revenues to $2.8bn as the company stepped up its cost-cutting efforts.
The company upgraded its forecasts for the full year, with adjusted earnings per share now expected to grow between 12pc and 15pc.
Glanbia boss Siobhan Talbot also announced plans to step down after a decade at the helm. Hugh McGuire, currently head of the performance nutrition business, will take over as chief executive in January.
Ms Talbot said: “I am pleased to report that Glanbia’s performance in the first half of the year was ahead of our expectations as the group successfully navigated some continuing volatility in global market conditions.
“This was driven by a strong operating performance, continued demand for our better nutrition brands and ingredients and the exceptional commitment of our people.”
