“Companies will overreact. The smart money will take action, but act slowly,” said Gary Stibel, chief executive officer of New England Consulting Group, which advises consumer and health care companies.
He recalled the olestra fad of the 1990s, when the fat substitute rapidly invaded the food aisle before being discarded due to its unpleasant side effects. “We’ve lived through what I think turned out to be a fad that we predicted would be a fad,” Richard Rosenfield, then an executive at California Pizza Kitchen, said in 2005. “It never seemed to affect our business. We did great through that craze.”
Even so, recent findings are eye-opening. A survey of GLP-1 users by Jefferies showed that more than 40% of respondents said they were eating out less. A similar percentage reported ordering less when they did. About 70% said they’re eating less overall, and roughly the same amount reported “increased awareness of nutritional benefits for foods.”
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