Greggs’ CEO has stated that the surging popularity of appetite-suppressing drugs has “no doubt” contributed to a demand for “smaller portions,” thereby impacting the company’s financial performance.
Roisin Currie also noted a growing consumer interest in “protein and fibre,” as well as generally healthier food options, prompting the bakery chain to introduce new products catering to these preferences.
Greggs has previously acknowledged that evolving dietary habits have influenced its strategic shift away from its traditional selection of rich, high-fat pastries and cakes.
Currie’s remarks follow the company’s recent report of lackluster profits and a conservative forecast for the year ahead.
Currie identified a “broader health trend” with consumers increasingly seeking protein-rich foods.
In July, the bakery chain announced its intention to target customers using weight loss medications by introducing smaller portion sizes and protein-focused products, subsequently launching its egg-pot product alongside the “eggs at Greggs” advertising campaign.
Currie affirmed the company’s commitment to providing “some of the snack products that customers are looking for if they are on any of the GLP-1 drugs.”
Several companies have observed changing consumer appetites related to the use of weight loss drugs.
Tesco reported on Thursday that a growing trend toward healthier eating had boosted sales of its fresh produce.
Chief Executive Ken Murphy stated that the group is closely monitoring customer habits in light of the rise in weight loss medication use and offers a range of “GLP-1 friendly” products.
“Clearly our strongest source of growth this year has been in fresh food, and that is, by far and away, the best thing people can eat,” he said.
“We also have a … range of high protein products across a number of different categories that also work very well in that context. So I think we’re well set to respond to any trends in healthier eating.”
Consumer analyst Clive Black of Shore Capital suggested that a slight dip in grocery volumes sold over Christmas compared to the previous year may be “perhaps the clearest indication of the impact of glucagon-peptide (GLP) drugs upon the nation’s eating habits?”
The phenomenon of “shrinkflation”, where companies reduce product sizes while maintaining prices to offset rising ingredient costs, is also a contributing factor to smaller portions.
A recent ban on junk food advertising before 9 p.m. has been implemented across the UK to combat rising obesity rates, according to the government.
Both major retailers report strong food sales, but M&S says sales of clothing and homeware fell.
Festive trading at the retailer beat expectations, but rising unemployment is expected to weigh on demand this year.
Work is now complete on the Ashbourne Reborn project, which led to complaints about a fall in trade.
The firms’ owner said “alarming” low Christmas trading left both in a “vulnerable” position
The food safety watchdog said people should return affected Deeside water bottles to stores.