The "miracle diet pill" has had an effect on the stock market: snack and beer stocks plummet.
Is the diet pill craze influencing the eating habits of Americans?
Elon Musk stated on social media platform X that the weight loss drug Ozempic has actually had a shocking impact on food sales at Walmart.
On Friday, October 6th, while most sectors on the S&P 500 saw a decline of only 0.5% in essential consumer goods from the previous day, major retailers experienced significant drops. Walmart fell by nearly 2%, Costco fell by 2.1%, Kroger dropped by 1.6%, and Walgreens fell by over 1.6%. $Target(TGT.US$ $Hershey(HSY.US$ $Mattel(MAT.US$ $Sysco Corp(SYY.US$ $The Kroger(KR.US$ $Walmart(WMT.US$ $Costco(COST.US$
On the other hand, the weight loss drug manufacturers, Novo Nordisk, saw a rise of over 2.3%, while Eli Lilly rose by over 4.3%. $Structure Therapeutics(GPCR.US$ $Amgen(AMGN.US$ $Novo-Nordisk A/S(NVO.US$ $Eli Lilly and Co(LLY.US$
Previous analysis from Wall Street indicated that Novo Nordisk and Eli Lilly's newly launched GLP-1 receptor agonist weight loss drugs, Ozempic and Wegovy, could lead to a food revolution in the United States. The US food industry has been resistant to change, believing that Americans' obsession with fast food, hamburgers, and other high-carb junk food will never change. Currently, the total value of the US food industry is close to $1 trillion, and any small changes can cause significant disruptions in the industry.
Morgan Stanley predicts that these two weight loss drugs could lead to a reduction in calorie consumption in the US by up to 1.7% over the next 11 years, with up to 8% of the population using weight loss drugs. Fast food, pizza, high-sugar snacks, candy, salty snacks, high-sugar drinks, and desserts will be most impacted by these weight loss drugs.
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Talented Mr Ripley : LOL! that is a far fetched theory.
the true reason for the aforementioned decreases in food consumption is that emergency EBT Food Stamp Benefits and stimulus monies have stopped - no more free money.
Join✅Discord Talented Mr Ripley: That is also, a far fetched theory. It’s actually because of rising grain, sugar, & corn prices as well as the interest rate hikes making food much more expensive, meaning people are more careful about how they spend.
Talented Mr Ripley Join✅Discord: fast food/dining out sales are up. people don't have time to and/or prefer not to cook, so they order take-out. food delivery sales are up, even if the stocks are down.
Join✅Discord Talented Mr Ripley: Yes for a lot of big names. but their margins are way down due to the climbing rates & food costs. Net Profit is way down for a lot of food distributors YOY, even if revenue is growing. I’m buying the hell out of food distributors and restaurants currently, Pepsi $PepsiCo (PEP.US)$ being my main focus. People are never going to stop buying food, especially sugary sh!t