How Nestlé is using next-gen tech to target GLP-1 consumers

Nestlé is seeking to turn the rise of GLP-1 weight-loss drugs from a threat into a business opportunity, using artificial intelligence and nutritional science to develop products aimed at millions of consumers taking medicines such as Ozempic and Wegovy.The rapid adoption of drugs made by Novo Nordisk and Eli Lilly has fuelled investor concerns that appetite-suppressing medicines could permanently reduce demand for packaged foods, snacks and beverages.Nestlé believes the drugs are also creating a new market for products designed to address the side effects of rapid weight loss.Chief technology officer Stefan Palzer told Reuters that Nestlé was using AI and other technology to analyse clinical research, identify nutrient combinations and develop products tailored to GLP-1 users.“We are well positioned with the portfolio. It’s a huge opportunity for our company,” he said.Presentation materials shown to Reuters detailed side effects associated with rapid weight loss, including muscle loss and the loss of facial fat often referred to as “Ozempic face,” and outlined areas where Nestlé believes its products can help address them.The GLP-1 market is dominated by Eli Lilly’s Mounjaro and Zepbound and Novo Nordisk’s Wegovy and Ozempic.Around 16 million Americans are taking GLP-1 medicines, according to Boston Consulting Group, a figure expected to rise sharply by the end of the decade.Nestlé’s response has been to develop products tailored to the needs of weight-loss drug users while using AI to accelerate research, product development and consumer analysis.Tackling side effectsPalzer said Nestlé’s scientists have been studying the consequences of rapid weight loss and developing products designed to help consumers manage them.The company is using AI tools to process large volumes of clinical research and identify combinations of nutrients that may help support muscle health, hydration and nutritional intake.Nestlé has begun adding collagen protein to products under its Vital Proteins brand to address concerns around skin, hair and nail health linked to rapid weight loss.“A big part of weight loss is that people lose lean muscle mass,” Palzer said. “We found a combination of two micronutrients which we industrialised that stimulate the growth of muscle tissue. On one hand you provide protein, on the other hand you stimulate the muscle tissue to grow back faster.”Palzer said Nestlé had also patented combinations of proprietary ingredients designed to reduce appetite among consumers who often experience increased hunger after discontinuing GLP-1 treatments.The company has already launched products aimed at GLP-1 users.Nestlé’s US business created Boost Advanced Nutrition Shake, marketed as containing 35g of protein to support muscle health during weight loss. In Asia and Australia, Nestlé has introduced a higher-protein version of its Milo malt drink called Milo PRO High Protein.Rival ice cream makers are also wrestling with the same issues, turning to higher-protein products, smaller portions and simpler ingredient lists.AI recipe bookAI is playing a growing role throughout that process.Nestlé has developed internal systems to analyse scientific literature, simulate consumer behaviour, identify emerging trends and help product developers navigate a database of roughly 120,000 recipes.Among those tools is an internal platform called Food Genie, which Palzer said helps scientists and product developers predict how recipes might perform and identify opportunities for reformulation.“You can imagine if you’re a small company you have only a thousand recipes. It’s very difficult to model and predict recipes using AI,” he said. “AI needs data.”Nestlé is also testing AI-driven consumer simulations designed to predict how shoppers will respond to new products and health claims before they reach shelves.The company is also using AI to monitor social media and identify emerging consumer trends.“You see noise around certain topics and then you can conclude whether that’s a lasting trend or not,” Palzer said. “Increasingly AI will get into this field.”Not everyone is convincedSome nutrition experts question whether specialised products offer significant advantages over conventional foods.“It’s quite sad that we turn to new products all the time that are more expensive than whole, fresh foods that also contain the same protein and nutrients,” said Amanda Avery, associate professor in nutrition and dietetics at the University of Nottingham in central England.She noted that meat, fish, eggs, dairy products, beans, nuts and pulses remain relatively inexpensive sources of protein and nutrients.Still, Avery said products specifically marketed to GLP-1 users were likely to find buyers.“Sadly, we are quite influenced by marketing,” she said. “Nestlé will have done their research.”Reporting by Richa Naidu; Editing by Adam Jourdan, Matt Scuffham and Keith Weir, of Reuters.