ConAgra Brands, Inc. CAG could reportedly revamp the portion sizes of its snacks should the rising tide of weight-loss drug usage shake up the culinary consumption landscape.
Conagra's scientists are investigating consumer behavior trends for likely modifications, Reuters reported, citing CEO Sean Connolly.
"If we end up seeing changes in consumer eating patterns, let's say they go to smaller portions ... (then) we design smaller portions," the report added, referring to Connolly.
The company reported Q1 FY24 sales of $2.90 billion, flat Y/Y, missing the consensus of $2.95 billion. Organic sales fell 0.3% Y/Y in Q1, led by a 6.6% Y/Y decline in volume on an industry-wide slowdown in consumption and recent consumer behavior shifts.
Drugs like Novo Nordisk A/S's NVO Wegovy and Ozempic are part of the GLP-1 agonists category that emulate a gut hormone that curbs appetite and induces a sensation of satiety, the report read.
"Clearly one of the things that (scientists) can see in the marketplace now are the early days of these drugs that are being used to help people manage their weight," Connolly added.
However, Conagra may alter the components in some products if consumer preferences shift; however, the adjustments will not be necessary in the next six months, the report added.
Now Read: Big Pharma's Weight Loss Drugs Vs. Snacking Industry: Who Will Prevail?
Price Action: CAG shares closed lower by 2% to $26 on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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