CNBC October 1, 2023
– Food companies are making big bets on snacking, but the rise of Wegovy, Ozempic and similar drugs could pose a threat to future sales growth.
– Morgan Stanley estimates the number of patients taking GLP-1 drugs could reach 24 million, or nearly 7% of the U.S. population, by 2035.
– But PepsiCo, Mondelez and other food companies may be able to pivot their portfolios before that happens.
For more than a century, frosted cornflakes have been the backbone of Kellogg’s business. That changes Monday, when the company will spin off its stable cereal business in favor of its faster-growing snack unit and rename itself Kellanova.
The spinoff comes weeks after another wager that consumers will graze between...