Ben Cohen and Jerry Greenfield, the co-founders of Ben & Jerry's, are not worried about the impact of weight-loss drugs on their ice cream business, despite the impending spin-off of their parent company Unilever plc's (NYSE:UL) ice cream division.
What Happened: The duo, both 73, believe that people's relationship with ice cream is more about enjoyment and celebration than nutrition, reported The Wall Street Journal.
This comes at a time when pharmaceutical companies like Eli Lilly And Co (NYSE:LLY) and Novo Nordisk A/S (NYSE:NVO) are introducing weight-loss drugs like Ozempic and Zepbound, raising concerns about a potential decline in ice cream consumption.
Greenfield says people's relationship with ice cream is centered on enjoyment and celebration rather than nutrition. Nonetheless, he advises that ice cream should be consumed in moderation. "You're not supposed to eat a whole tub at once... I think you can eat a whole tub at once.... You're just not supposed to do it every day," he said.
Despite this, the co-founders are confident in the future of their brand. They recently shared internal sales data with the Wall Street Journal, indicating that the brand has seen stronger sales growth than its parent company's broader ice cream business over the past five years.
Unilever, announced in March its plans to spin off or sell its ice cream division, putting Ben & Jerry's at a crossroads.
Why It Matters: Both Cohen and Greenfield are known for their progressive politics and have been friends since seventh grade. They live near each other in Vermont and continue to be involved with Ben & Jerry's, despite not having any managerial or operational roles at the company.
The rise of weight-loss drugs like Ozempic has significantly impacted the food and beverage industry. Novo Nordisk, recently announced a $4.1 billion investment to expand its U.S. manufacturing operations. This expansion aims to meet the surging demand for its weight-loss drugs, reflecting the growing market for GLP-1 medications projected to reach $130 billion by 2030.
Moreover, Goldman Sachs analysts have highlighted the potential of weight-loss drugs, predicting a significant increase in global sales. This surge has prompted companies like Nestlé (OTC:NSRGY) to introduce new food lines targeting weight-loss drug users.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote