PepsiCo Signals Reset as Weight Loss Drug Trend Impacts Beverage and Snack Demand
PepsiCo is confronting the shifting dynamics of consumer health preferences head-on, with CEO Ramon Laguarta openly acknowledging the effects of weight loss drugs like Ozempic and Wegovy on the company’s performance. The beverage and snack giant has been under pressure as the rise of GLP-1 weight-loss medications increasingly influences consumer eating behaviors.
In a recent interview, CNBC’s Jim Cramer applauded Laguarta for his candor, calling it a “breath of fresh air” in contrast to the silence from other leading FMCG players. Laguarta’s comments mark a rare public admission from a major consumer goods CEO that appetite-suppressing drugs are beginning to erode demand in the core snacking and beverage categories.
PepsiCo’s stock has declined approximately 14% year-to-date, facing mounting concerns that category growth could slow as more consumers adopt GLP-1 medications to manage obesity and diabetes. Analysts note that these drugs are changing shopping patterns, particularly decreasing impulse snack purchases.
Recognizing this trend, PepsiCo is looking to recalibrate its portfolio through innovation and reformulation. The company is investing in reduced-sugar beverages, portion control, and functional snacks aimed at health-conscious consumers. This evolution aligns with its long-term strategy to shift 75% of its global beverage portfolio to contain less than 100 calories from added sugars per 12-ounce serving by 2025.
Cramer suggested the company’s honesty about this challenge positions it well to regain investor confidence. “You have to be able to admit that maybe there is something like the weight loss drugs that changed the landscape,” he said. “PepsiCo is willing to do that.” He added that just as tobacco companies had to adapt to changing health data, snack and beverage manufacturers will need to innovate rapidly to protect market share.
For FMCG stakeholders, Laguarta’s position underscores the need for long-term adaptability in product portfolios and greater responsiveness to health-driven shifts in consumption. As weight loss drugs gain wider adoption, their ripple effect could transform the landscape of quick-service foods and convenience snacking — categories that have long been vital to growth across the packaged goods sector.