Pepsi CEO Addresses Weight Loss Drug Concerns, Sees No Impact On Business

The CEO of snack and beverage giant PepsiCo Inc. PEP, Ramon Laguarta, stated that the company has seen a “negligible” effect from the rise in weight loss and diabetes medications on its business.

According to a CNN report, despite warnings from food analysts about the potential impact of semaglutide drugs like Ozempic and Wegovy, which suppress appetites, on food consumption habits, Laguarta remains unfazed. He suggested that PepsiCo’s strategy of offering healthier options and smaller package sizes could aid in mitigating any significant impact.

“Our portfolio strategy, we think, is very solid when it comes to potential protection against … some of these future developments,” said Laguarta. He added that several questions about the long-term effects of these drugs still remain.

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PepsiCo’s CFO, Hugh Johnston, also shared a positive outlook.

"I think anything that's good for human health is actually good for the company in the long run. People are going to want to continue to snack in some form or another," he said.

He further assured that PepsiCo would adjust its product offerings as needed to align with changing consumer tastes.

Moreover, the company announced an increase in sales and positive third-quarter results, largely attributed to the success of reduced package sizes and price hikes. They reported a nearly 7% rise in net sales to $23.45 billion, despite a 2.5% drop in volume.

As a result, PepsiCo adjusted its full-year forecast upwards for the third consecutive quarter. The company now expects earnings per share to be $7.54, up from the initial forecast of $7.20 per share released in February.

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Image: Shutterstock by Zety Akhzar