Sales of SlimFast, the meal replacement shakes, have dropped in the US as people turn to new blockbuster weight-loss drugs instead.
Consumption of Slimfast was down 33% in the 12 weeks to July 16 compared with a year earlier, according to Glanbia Plc, the owner of the brand, which released its first-half earnings statement on Wednesday.
Injectable drugs to help people lose weight have taken the diet market by storm. Demand for Wegovy in particular has boosted the market value of its maker, Novo Nordisk A/S, to more than $400 billion.
“On the weight management side, that category has certainly been challenged,” Mark Garvey, finance director of Glanbia Plc, said on a phone call. “You’re seeing more weight management drugs out there, which is impacting the sector.”
Garvey said the drugs were already having a big effect on the US market.
Read More: The Weight-Loss Drug Frenzy Is Outrunning the Company Behind It
SlimFast represents 11% of the Irish company’s performance nutrition portfolio despite declining popularity. The latest fall follows a 17% drop in consumption in the 12 weeks to June 2022.
The food and nutrition firm increased its outlook for the year on Wednesday and named Hugh McGuire as its new chief executive officer — he will start on Jan. 1 next year. It reported first-half earnings before interest, tax and amortization of $198.6 million compared with $187.6 million a year ago.
(Corrects earnings number in final paragraph; previous version incorrectly said it included depreciation.)
