Greggs acknowledged that the rising popularity of weight loss drugs is impacting its financial performance, as consumers shift towards smaller portions and healthier options. The bakery chain's CEO, Roisin Currie, stated there was "no doubt" appetite-suppressing drugs were influencing customer choices, contributing to the company's "lacklustre profits" and a "muted forecast for the coming year."
While Greggs did not specify the precise financial impact, Currie's comments accompanied a report indicating weaker-than-expected profits and a cautious outlook. This suggests a potential correlation between changing consumer habits and the company's bottom line. The firm's response includes introducing smaller portion sizes and protein-rich products like egg pots, aligning with the broader health trend of consumers demanding more protein and fibre. This strategic shift follows Greggs' earlier move away from its traditional high-fat offerings.
The market for weight loss drugs, particularly GLP-1 receptor agonists, has exploded in recent years. This surge in popularity is reshaping the food industry, with companies like Greggs needing to adapt to evolving consumer preferences. Several firms have reported changing customer appetites as a result of these medications, signaling a potentially long-term shift in dietary habits.
Greggs, a British bakery chain, has historically built its brand on affordable and convenient pastries, cakes, and savory snacks. The company has been working to diversify its menu in recent years, introducing healthier options to cater to a broader customer base. This latest move to target customers on weight loss drugs with smaller portions and protein-rich products represents a further evolution of its strategy.
Looking ahead, Greggs aims to navigate the changing landscape by offering products that appeal to health-conscious consumers, including those using weight loss medications. The success of this strategy will be crucial in determining the company's future financial performance and its ability to maintain its market position in an increasingly health-focused environment.
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