Snacks In The Ozempic Era: Food, Beverage Stocks Crash With Weight Loss Drugs On The Rise
Portfolio Pulse from Piero Cingari
Food and beverage stocks have experienced significant declines, with the First Trust Nasdaq Food & Beverage ETF (FTXG) falling over 5% this week. This is attributed to concerns over weight-loss drugs like Ozempic and Wegovy, manufactured by Novo Nordisk (NVO), which could alter consumption patterns and reduce demand for high-calorie foods and beverages. Walmart (WMT) reported a decline in shopping demand due to these drugs. Bank of America analysts suggest that the highest risk of reduced consumption pertains to alcohol, snacking, non-alcoholic beverages, and weight management products. Several food stocks, including The Hershey Company (HSY), PepsiCo (PEP), and The Coca-Cola Company (KO), are trading lower this week.
October 06, 2023 | 8:01 pm
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NEGATIVE IMPACT
The First Trust Nasdaq Food & Beverage ETF (FTXG) fell over 5% this week due to concerns over weight-loss drugs.
The ETF is directly impacted by the performance of food and beverage stocks, which are currently under pressure due to concerns over weight-loss drugs.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The Hershey Company (HSY) is trading lower this week due to concerns over weight-loss drugs.
The company's stock is under pressure due to concerns over weight-loss drugs altering consumption patterns.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The Coca-Cola Company (KO) experienced a substantial 5% drop, marking its worst-performing week in over a year-and-a-half.
The company's stock is under pressure due to concerns over weight-loss drugs altering consumption patterns.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
PepsiCo (PEP) experienced a substantial 5% drop, marking its worst-performing week in over a year-and-a-half.
The company's stock is under pressure due to concerns over weight-loss drugs altering consumption patterns.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Walmart (WMT) reported a decline in shopping demand due to the use of weight-loss and appetite-suppressing drugs.
The retailer is experiencing a decrease in demand for certain products due to the use of weight-loss drugs.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Novo Nordisk (NVO), the manufacturer of weight-loss drugs Ozempic and Wegovy, is indirectly impacting the food and beverage industry.
The company's weight-loss drugs are causing a shift in consumption patterns, which is negatively impacting the food and beverage industry.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80