By James Davey
LONDON, Jan 9 (Reuters) – Britain’s major food retailers are beginning to feel the impact of a new trend as the surging popularity of appetite-suppressing drugs starts to reshape shopping habits and sales.
About 5% of the UK’s adult population is reportedly embracing glucagon-like peptide (GLP-1) drugs and their effect is now starting to show in sales of food, retail bosses and analysts said this week.
Market researcher NielsenIQ said on Monday that although total UK grocery sales rose 2.5% in value terms over the four weeks to December 27, they fell 0.2% on a volume basis.
Clive Black, head of consumer research at Shore Capital, said this was “perhaps the clearest indication of the impact” of the drugs on the nation’s eating habits.
Simon Roberts, CEO of Sainsbury’s, Britain’s second largest food retailer, said the group was noticing an impact.
“For customers that are using these products, we’re seeing more of that switch into healthier choices, into fresh food, into fibre and we’re really well placed to serve that mission,” he told reporters on Friday when the group updated on Christmas trading.
Ken Murphy, CEO of Tesco, said on Thursday that Britain’s biggest food retailer was watching “very closely” how the GLP-1 trend is developing.
“We already have a wide range of products that I would describe as GLP-1 friendly,” he said, highlighting that fresh food was the standout performance at Christmas, with like-for-like sales up 6.6% year-on-year – “that is, by far and away, the best thing people can eat”.
He said Tesco also had high-protein products across several categories that work well in the GLP-1 context.
“We’re well set to respond to any trends in healthier eating and we’ll continue to watch very closely any specific product ranges that could be suitable for those kind of consumers.”
Higher sales of low alcohol and no alcohol drinks were also evident at Christmas, Murphy added.
Roisin Currie, CEO of Greggs, the British fast-food chain famous for its high calorie sausage rolls, steak bakes and sweet treats, said on Thursday its customers are looking for smaller portions and for more information on protein and fibre content. She said Greggs is responding by refining its product offer.
Last month, upmarket food retailer Marks & Spencer launched a range of nutrient-dense meals, tailored to people taking weight-loss injections.
(Reporting by James Davey; Editing by Kirsten Donovan)
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