SlimFast, a pioneer in the meal replacement industry, is now on the market following a significant shift in consumer preferences towards weight-loss drugs rather than conventional dieting products. This decision comes as a result of a noticeable decline in sales of traditional meal replacements, a trend highlighted by data from IndexBox.
In 2023, SlimFast’s parent company, Glanbia, reported a steep 33% drop in sales over just three months. This decline reflects a broader movement in the weight-loss sector, where pharmaceuticals like Wegovy and Mounjaro have gained significant popularity, particularly in the U.S. and U.K. A survey by KFF Health Tracker found that approximately 12% of American adults experimented with these medications last year, signaling a substantial shift in weight management strategies.
Founded in 1977, SlimFast experienced immense success in the 1980s and 1990s. However, as demand for pharmaceutical solutions to obesity grows, SlimFast’s position in the market has faltered. As a result, Glanbia has written off $91.4 million from SlimFast’s value in the Americas. Projections by Morgan Stanley indicate that the obesity drug market could reach a staggering $105 billion by 2030, potentially reshaping consumer habits, with predictions of a 3% decline in soft drink and snack consumption by 2035.
The announcement of SlimFast’s sale has had significant financial consequences for Glanbia, with its stock price tumbling by more than 14%, the lowest level seen since 2007. This drop is attributed to the company’s inability to meet revenue expectations and rising concerns over the increasing costs of whey.
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