Nestle Eyes New Product Line To Serve Weight-Loss Drug Users

Nestle is using artificial intelligence and nutritional science to develop products aimed at the growing number of consumers taking weight-loss drugs such as Ozempic and Wegovy, seeking to turn the rise of these medicines into a business opportunity rather than a threat, the company's Chief Technology Officer told Reuters.

The rapid adoption of GLP-1 drugs made by Novo Nordisk and Eli Lilly has fuelled concerns among investors that appetite-suppressing medicines could permanently cut demand for packaged foods, snacks and beverages. Nestle believes the drugs are also creating a new market for products designed to address the side effects of rapid weight loss.

AI Used To Study Clinical Research

CTO Stefan Palzer told Reuters that Nestle was using AI and other technology to analyse clinical research, identify nutrient combinations and develop products tailored to GLP-1 users. "We are well positioned with the portfolio. It's a huge opportunity for our company," he said.

Presentation materials shown to Reuters detailed side effects associated with rapid weight loss, including muscle loss and the loss of facial fat often referred to as "Ozempic face," and outlined areas where Nestle believes its products can help address them.

The GLP-1 market is currently dominated by Eli Lilly's Mounjaro and Zepbound, and Novo Nordisk's Wegovy and Ozempic. Around 16 million Americans are taking GLP-1 medicines, according to Boston Consulting Group, a figure expected to rise sharply by the end of the decade.

Products Targeting Muscle Loss And Appetite

Nestle's scientists have been studying the consequences of rapid weight loss and developing products to help consumers manage them, Palzer said. The company is using AI tools to process large volumes of clinical research and identify nutrient combinations that may support muscle health, hydration and nutritional intake.

Nestle has begun adding collagen protein to products under its Vital Proteins brand to address concerns around skin, hair and nail health linked to rapid weight loss.

"A big part of weight loss is that people lose lean muscle mass," Palzer said. "We found a combination of two micronutrients which we industrialized that stimulate the growth of muscle tissue. On one hand you provide protein, on the other hand you stimulate the muscle tissue to grow back faster."

Palzer added that Nestle had also patented combinations of proprietary ingredients designed to reduce appetite among consumers who often experience increased hunger after discontinuing GLP-1 treatments.

The company has already launched products for this consumer base. Its U.S. business created the Boost Advanced Nutrition Shake, marketed as containing 35 grams of protein to support muscle health during weight loss. In Asia and Australia, Nestle introduced a higher-protein version of its Milo malt drink called Milo PRO High Protein. Rival ice cream makers are also responding to similar concerns, turning to higher-protein products, smaller portions and simpler ingredient lists.

Internal AI Tools Aid Product Development

Nestle has developed internal systems to analyse scientific literature, simulate consumer behaviour, identify emerging trends and help product developers navigate a database of roughly 120,000 recipes. Among these tools is an internal platform called Food Genie, which Palzer said helps scientists and product developers predict how recipes might perform and identify opportunities for reformulation.

"You can imagine if you're a small company you have only a thousand recipes. It's very difficult to model and predict recipes using AI," he said. "AI needs data."

The company is also testing AI-driven consumer simulations to predict how shoppers will respond to new products and health claims before they reach shelves, and is using AI to monitor social media for emerging consumer trends. "You see noise around certain topics and then you can conclude whether that's a lasting trend or not," Palzer said. "Increasingly AI will get into this field."