Weight Loss Drug Ozempic Triggers Slump in Snack, Beer, and Fast Food Stocks

Shares of food and beverage companies, including Constellation Brands, Mondelez International, and Nestle, slid after Walmart mentioned the impact of weight loss drugs like Ozempic on shopping demand. The S&P 500 Consumer Staples Index fell 0.5% on Friday, extending losses after its worst session since January. While some skepticism remains about the long-term impact on consumer buying habits, analysts suggest that alcohol, snacking, and non-alcoholic drink companies are most at risk with the broad adoption of weight loss drugs. PepsiCo will be the first major company in the group to report third-quarter results next week, and analysts expect questions about the potential impact of weight loss drugs on their businesses.