Why Danone is Downplaying Weight Loss Drugs

Danone CEO: Downplaying Weight Loss Drug Impact

Antoine de Saint-Affrique, CEO of Danone, dismisses concerns about the impact of weight loss drugs on the company’s food business. He suggests that consumers shifting towards healthier options could benefit Danone.

Navigating the GLP-1 Trend

In an interview with CNBC’s Charlotte Reed, de Saint-Affrique addresses the rising demand for GLP-1 drugs like Wegovy and Mounjaro. Rather than seeing them as a threat, he views them as complementary to Danone’s products, emphasizing their nutritional value and role in balanced diets.

Danone’s Nutritional Offerings

De Saint-Affrique highlights Danone’s range of products, including Activia yogurts and Alpro plant-based milks, as essential components of consumers’ dietary adjustments. He underscores the importance of proteins in maintaining gut health and positions Danone as a provider of essential nutrients.

Analyst Insights and Market Opportunities

Financial analysts at Kepler Cheuvreux suggest that concerns about GLP-1s’ impact on the consumer goods market may be exaggerated. Jon Cox, head of European consumer equities, identifies potential opportunities for food manufacturers specializing in protein products and dietary supplements amidst evolving consumer preferences.

Beneficiaries in the Changing Landscape

Kepler Cheuvreux identifies Danone and Nestle as potential beneficiaries of the evolving consumer goods landscape. Investment firm Jefferies recommends Danone as a buy, highlighting its resilience amidst broader challenges in the food sector, influenced by consumer spending adjustments due to high inflation.

Related: Danone’s Offloading Russian Business

Source: Dairy News

Antoine de Saint Affrique CEO of Danone 1
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