nestle: Weight loss drugs not a threat to Nestle biz: CEO Mark Schneider

Nestle SA chief executive officer Mark Schneider played down the threat of GLP-1 weight-loss drugs to the world’s largest food company as it has been building up its portfolio of products that have lower calories.

Nestle now gets half of its revenue from coffee, pet care and vitamins, compared to 30% seven years ago, Schneider said in a Bloomberg TV interview. Those categories are expected to be more resilient as people on weight-loss drugs cut down on snacking and reduce meal sizes.

“It’s not so much a threat,” he said. “It’s a full-blown vindication of the strategy that we’ve been pursuing very patiently over the years.”

The maker of Lean Cuisine meals has been selling less profitable businesses and buying higher-growth ones. Schneider said he’s made “50 billion” in deals and also walked away from another 50 billion worth, without specifying a currency. He expects the company’s vitamins, minerals and supplements business to grow in the mid- to high-single digits.