Weight loss jabs affecting Greggs, boss says

The boss of Greggs said there was “no doubt” hugely popular appetite suppressing drugs have led to people looking for “smaller portions”, affecting the company’s bottom line.

People are also looking for “protein and fibre”, and generally healthier options, Roisin Currie said, adding the bakery has been introducing products to tap into that market.

Greggs has previously said peoples’ dietary changes led it to move away from its usual fare of hearty and high-fat pasties, cakes and pastries.

Currie’s comments come as the firm reported lacklustre profits and a muted forecast for the coming year.

Currie said there was a “broader health trend” emerging with people demanding more protein.

The bakery chain said in July it would target customers on weight loss drugs by rolling out smaller portions and protein-rich products, after which it launched its egg-pot alongside its popular “eggs at Greggs” ad campaign.

Currie said the firm had “to make sure that we’ve got some of the snack products that customers are looking for if they are on any of the GLP-1 drugs”.

Several firms have said customers appetites are changing as a result of weight loss drugs.

Tesco said on Thursday a trend towards healthier eating had contributed to growth in its fresh produce sales.

Chief executive Ken Murphy said the group was watching customer habits “very closely” alongside the rise in weight loss medication and said the supermarket had a range of “GLP-1 friendly” products.

“Clearly our strongest source of growth this year has been in fresh food, and that is, by far and away, the best thing people can eat,” he said.

“We also have a … range of high protein products across a number of different categories that also work very well in that context. So I think we’re well set to respond to any trends in healthier eating.”

Consumer analyst Clive Black, from Shore Capital, said the slight dip in the volume of groceries sold over Christmas compared with the year before was “perhaps the clearest indication of the impact of glucagon-peptide (GLP) drugs upon the nation’s eating habits?”

The effects of “shrinkflation” are also to blame for smaller portions, as firms reduce the size of a product but keep the price the same in order to manage the rising cost of ingredients.

Recently, a ban came in to force across the UK banning adverts for junk foods before 9pm, which the government said was to help stem rising rates of obesity.