Nestle is trying to leverage the rising trend of GLP-1 weight-loss drugs, which are a threat, as an opportunity through the use of artificial intelligence and nutrition science in the development of products targeted at millions of people consuming medicines like Ozempic and Wegovy.
The growing popularity of the medicines developed by Novo Nordisk and Eli Lilly has heightened investors’ fears that appetite-suppressing medicines will have a long-term effect of diminishing consumption of packaged foods, snacks, and beverages.
It seems that Nestle sees another market emerging out of the medicines and has been making efforts to cater to the customers with products that would help them tackle some of the side effects of losing weight fast.
Stefan Palzer, the chief technology officer of Nestle, told Reuters that they had been utilizing AI and technology to analyze clinical research, figure out nutrient combinations and create products specifically targeted at GLP-1 drug users.
“The portfolio is very good positioned. It’s a big opportunity for us,” he said. The presentation material provided to Reuters listed the side effects of rapid weight loss, including muscle loss and facial fat loss popularly known as “Ozempic face”.
GLP-1 market is largely controlled by Mounjaro and Zepbound of Eli Lilly and Wegovy and Ozempic from Novo Nordisk.
Some 16 million Americans are now taking GLP-1 drugs, according to Boston Consulting Group, which sees this number rising rapidly throughout the decade.
The Nestle reaction was to develop products that will meet the needs of weight-loss drugs customers and use AI for faster research, development and analytics of consumer habits.
ADDRESSING THE SIDE EFFECTS
According to Palzer, Nestle scientists were studying the effects of rapid weight loss and creating products that could assist consumers with managing them.
The company is using AI technology to process huge amounts of scientific data and analyze what combination of nutrients could be beneficial in maintaining the proper muscles condition, hydration and nutrition.
The company has started adding collagen protein to its Vital Proteins branded products to counteract the side effect associated with rapid weight loss.
“Part of weight loss is the reduction in lean muscle mass,” Palzer said.
“We discovered two combinations of micronutrients which we have industrialized and found that these stimulate the development of muscle tissue. One side you provide with protein, and another stimulates muscle tissue to develop again.”
Palzer said Nestle has also patented a combination of proprietary components that help decrease appetite in consumers who usually feel more hungry after they stop using GLP-1 drugs.
The company already produced some products for GLP-1 users.
Nestle’s American subsidiary produced Boost Advanced Nutrition Shake, which was advertised as 35 grams of protein for muscle health while losing weight. And in Asia and Australia, Nestle produced the higher-protein version of Milo malt drink named Milo PRO High Protein.
Rivals from the field of ice cream production have to cope with the same problem, producing high-protein products, smaller portion sizes and cleaner labels.
AI RECIPE BOOK
AI is becoming increasingly important in that whole process.
According to Palzer, Nestle has built up its own systems to analyse scientific literature, run simulations of consumer behavior, detect trends and allow product developers to work within a database of about 120,000 recipes.
One of the systems used by Nestle in that case is called Food Genie, and Palzer described it as a tool allowing scientists and product developers to predict performance of recipes and look for reformulation opportunities.
“You can think of a small company with 1,000 recipes. It is quite difficult to make any modeling and prediction of recipes with AI,” he said.
Palzer mentioned that Nestle is also testing AI consumer simulations designed to predict consumers’ reactions to new products and their health claims before these products hit the shelves.
Moreover, Nestle uses AI for monitoring social media and detecting consumer trends there.
“You hear noise on certain topics and then you can determine whether it is a trend or not,” Palzer said.
“Increasingly AI will be involved in this area.”
EVIDENCE TO THE CONTRARY
Some nutrition experts doubt the value of specialised products in comparison to normal food items.
“It’s very sad because we always look for new products which cost us more than the whole food which contains the same amount of protein and nutrients,” said Amanda Avery, associate professor in nutrition and dietetics at the University of Nottingham, central England.
She pointed out that meat, fish, eggs, milk products, beans, nuts and pulses are inexpensive sources of protein and nutrients.
However, Avery said that specialised products for GLP-1 consumers would still find a market.
“Unfortunately, we are very much influenced by marketing,” she said. “Nestle will have done their research.”
