New weight-loss drugs are making people eat less food, but chew more gum.
Hershey Co. Chief Executive Officer Kirk Tanner said GLP-1 drugs are helping to boost sales of mints and gum, including the company’s Ice Breakers. Retail sales of the line, now its third-largest confection brand, grew 8% last quarter, the CEO said Thursday.
“We’ve also seen strong demand for gum and mint products as the category benefits from functional snacking tailwinds, including GLP-1 adoption,” Tanner said in prepared remarks.
Because GLP-1 drugs slow down digestion, users can experience side effects, including nausea, dry mouth and a phenomenon known as “Ozempic breath” or burps. Novo Nordisk A/S makes Ozempic.
The boost to Hershey’s gum and mint business is a positive for a company that makes sweets as the expansion of these weight-loss drugs has curbed appetites and food purchases.
Overall, GLP-1 users continue to buy candy and chocolate, in part because they naturally are packaged in small portions, Tanner said.
The outlook
‘It’s a treat’
“This is an emotional category,” Tanner said Thursday on a call with analysts. “It is a treat, not a meal.”
Tanner said Hershey was spending a lot of time researching the expanding use of GLP-1 drugs and incorporating that into its outlook.
“The confection category is relatively insulated compared to other food categories,” he said.
Many GLP-1 users also focus on eating foods with more protein to help preserve muscle mass, since rapid weight loss can cause them to lose both muscle and fat. Hershey said it also saw a 17% increase in consumption of its protein bars last quarter.
This article originally appeared on The Detroit News: Got ‘Ozempic breath?’ Hershey sees GLP-1 lift for mints, gum
Reporting by Kristina Peterson, Bloomberg / The Detroit News
USA TODAY Network via Reuters Connect
