Last month, Nestlé SA (OTC:NSRGF) (OTC:NSRGY) unveiled Vital Pursuit, a new line of foods designed to complement GLP-1 weight loss medications and aid consumers focused on weight management.
The European food giant said the company will not mention the weight loss drugs on the packaging.
Tom Moe, President of Meals at Nestle USA, stated that the company's Vital Pursuit line would be marketed primarily through social media to avoid regulatory issues.
"We won't directly make the connection (to the drugs) on the food package," Moe emphasized in a Reuters report.
This decision highlights the regulatory uncertainties that global food companies face when targeting the growing market of people using appetite-suppressing medications, such as Novo Nordisk A/S's (NYSE:NVS) Wegvoy and Eli Lilly And Co's (NYSE:LLY) Zepbound.
The medications, known as GLP-1 agonists, have impacted snack-makers and fast-food chains as consumers reduce their food intake.
Reuters report adds that Nestle's Vital Pursuit products will compete with brands that make specific claims for people who are on these medications.
For example, Biocare, a drink priced at $4.50 per serving, claims to alleviate side effects like nausea for users of semaglutide, the active ingredient in Wegovy and Ozempic.
Referencing weight-loss drugs on Vital Pursuit packaging could lead to regulatory scrutiny. "We're not a medication, we're a food product," Moe noted. Mentioning medications could imply that the food treats or prevents disease, a claim only FDA-approved products can make.
The report further quoted Lauren Handel, an attorney specializing in food regulations, who advised that the safest approach is to avoid mentioning any drugs. "It's a tricky area where you'd want to be careful about what you say," she said, noting that labeling products as "suitable for people on a diet" may comply with regulations.
Nestle has not disclosed whether it will refer to the drugs in advertisements.
In contrast, Herbalife Ltd (NYSE:HLF) has taken a direct approach, promoting its GLP-1 Companion Pack on Facebook to support the nutritional needs of people using GLP-1 weight-loss drugs.
Frank Lamberti, Herbalife's Chief Commercial Officer, said the company avoids brand names like Ozempic to avoid alienating users of other drugs such as Eli Lilly's Mounjaro and Zepbound.
Other companies, including Coca-Cola Company (NYSE:KO) and yogurt-maker Danone (OTC:DANOY), are positioning their products as suitable for weight-loss medications due to their low sugar or high protein content. Conagra Brands, Inc. (NYSE:CAG), maker of Healthy Choice meals, will also avoid drug names on packaging.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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