Conagra Brands targets GLP-1 users with new labels - WSJ

Conagra Brands (NYSE:CAG ), a major player in the packaged-foods industry, is introducing a new label for a selection of its Healthy Choice frozen meals, branding them as "GLP-1 friendly," according to report from the Wall Street Journal. This initiative, starting in January, aims to cater to consumers who are reducing their food intake, particularly those using GLP-1 drugs like Ozempic and Wegovy for weight loss.

The label will be featured on 26 Healthy Choice products known for their high-protein, low-calorie, and good fiber content. These dietary qualities align with the needs of GLP-1 drug users, who often adjust their diets to include more protein and fiber to manage muscle mass and digestive health.

Bob Nolan, Conagra's senior vice president of demand science, expressed the company's intent to support this significant consumer demographic and establish a strong brand connection. Conagra's strategy comes at a time when the company is navigating a sales downturn due to consumers' pushback against rising grocery prices. Efforts to attract customers back to frozen meals have included promotions, product launches, and advertising campaigns to enhance frozen-vegetable sales.

While Conagra's packaging will explicitly mention the GLP-1 friendly aspect, other food companies have also developed products tailored to the dietary needs of weight-loss drug users without directly referencing the medications. Nestlé introduced Vital Pursuit, a line of frozen meals with nutritional value highlighted on the packaging. Abbott Laboratories (NYSE:ABT ) launched a high-protein shake aimed at GLP-1 users, with packaging that emphasizes weight loss and muscle health.

The Healthy Choice brand, originating in the 1980s for those with heart conditions, is adapting to the growing use of weight-loss medications. Conagra executives noted that the adoption of GLP-1 drugs has had a slightly positive effect on their business, driven by the demand for frozen single-serve meals and appetizers that offer convenience and controlled portions.

The impact of weight-loss drugs is also being observed by other food manufacturers. Hershey CEO Michele Buck acknowledged a mild effect on their business and emphasized the importance of monitoring eating behaviors to adapt their product offerings accordingly.

Conagra has navigated regulatory processes to ensure the new labeling meets standards. After submitting concepts to the USDA and incorporating feedback, the company received approval in October for the new labels. Marketing efforts for the GLP-1 friendly meals are set to include social media campaigns, and the label may extend to additional Conagra products in the future.

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Source: Investing.com