Major packaged food companies face investor skepticism due to persistent inflation and the rise of GLP-1 weight-loss drugs. Financially strained consumers switch to cheaper private-label alternatives and purchase fewer items. Simultaneously, drugs like Ozempic reduce calorie intake and spending on processed snacks.
In June 2026, Bernstein downgraded General Mills, Kraft Heinz, Campbell's, and Conagra. Executives warn of a prolonged downturn in consumer spending.
Companies respond by launching high-protein products and smaller portion sizes. Some brands develop dedicated food lines specifically for GLP-1 users to stabilize sales volumes.