Nestle’s Protein-Packed Comeback Is AI-Tailored to GLP-1 Users

In news that would’ve made little sense to most people five years ago, Nestle is using AI to develop GLP-1 companion products. The food company is turning lemons into lemonade, or to be more accurate, protein shakes. 

More people are losing their snack cravings as they go on weight-loss drugs including Ozempic and Wegovy, leading sales to sour for treat-makers like Nestle. But the packaged-goods industry has been plotting a comeback.

Ozempiconomics 101

The percentage of Americans taking GLP-1 drugs has nearly quadrupled from 3% in 2024 to 11% this year, Gallup found in a poll last month. And the snack aisle has taken a direct hit from consumers’ small appetites: People who started GLP-1s cut their grocery budgets by 6%, amounting to $416 in annual shopping hauls per household, a study by Cornell University and Numerator found. Higher-income households cut back even more ($690 annually), and spending fell the most for higher-calorie products including chips and cookies. 

Companies like Nestle are trying to turn the loss into an opportunity:

• Nestle tapped AI to help create new products that cater to GLP-1 users by supplementing the nutrients and protein their skimpier diets might be missing, while reformulating flavors to appeal to palates that can be dulled by the drugs (according to a study published last year). Nestle already launched its Boost Nutrition Protein Shake, explicitly targeting GLP-1 takers, and is adding collagen protein to its Vital Proteins products to offset hair and skin issues linked to rapid weight loss.
• PepsiCo, which saw sales from its food biz slip 2% in the second quarter, has said its smaller, portion-controlled packs have been popular. 

Less Can Cost More: Companies could be looking to make up for lost sales volume with better margins per product. Chips, cookies and other little treats aren’t priced per calorie, and food companies can charge more for products perceived to be loaded with functional add-ins. Food companies are coming up with creative ways to sell GLP-1 users products that cater to a new array of “needs.” How much people really need the packaged products, versus whole foods, isn’t so clear to nutritionists.