All About America explores American culture, politics, trends, history, ideals and places of interest.

As Americans shed pounds on weight loss drugs like Ozempic, snack food companies could be in for some shrinkage, as well.

“The food, beverage and restaurant industries could see softer demand, particularly for unhealthier foods and high-fat, sweet and salty options,” Morgan Stanley food analyst Pamela Kaufman says in a company report.

A survey of 300 people currently taking semaglutide weight loss drugs such as Ozempic showed the medicine can reduce calorie intake by 20% to 30% a day.

The people surveyed said they cut back the most on foods that are high in sugar and fat, reducing their consumption of sweets, sugary drinks and baked goods by up to two-thirds. The survey found 77% of people on weight loss drugs went to fast food restaurants less often, while 74% reduced their visits to pizza shops.

Approximated 1 in 5 American adults is obese, according to the Centers for Disease Control and Prevention.

“It’s all of these food companies [and] beverage companies that have created the obesity,” says Angelica Gianchandani, professor of marketing at the University of New Haven in Connecticut. “At one time, it was innovation — creating all these different products and being able to put foods in bags and ziplocks [plastic bags] and easy to carry and transport — that was innovation. But all of this food creation in packaged goods, there’s a lot of processed foods, and the impact, if you’re not eating in moderation, has created this obesity.”

Morgan Stanley analysts estimate that 24 million people, roughly 7% of the U.S. population, will be taking this new class of obesity drugs by 2035. They project that overall consumption of soft drinks, baked goods and salty snacks could fall up to 3% by 2035.

But James Schrager, professor of entrepreneurship and strategy at the University of Chicago, says the snack industry continues to grow, and he doesn’t expect the increased use of semaglutides to have a major long-term impact.

“The growth comes from younger users, and younger users may not be the primary target for the drug,” he says. “Younger people — who don’t become obese usually, or at least in many cases — and who aren’t going to be taking the drug.”

Schrager says he’s worked as a consultant with some of the largest processed food companies in the world, and they are already concerned about providing healthier options.

“Way before this drug, [they worried] that the market will go away,” Schrager says. “They very much know that some of these are not good for some people’s health. …They would often say, ‘In a health-conscious world, we realize we may be out of business. How do we fix that?’”

The rise in semaglutide use also could cut into other obesity-related industries. The proportion of people paying for weight loss programs fell from 29% to 20% once they started taking the drug, according to the data. Gianchandani says weight loss businesses will pivot to health and wellness to stay afloat.

“And it will require people to have coaches, people to have nutritionists, to help give them a regimented diet to help them monitor,” she says. “These weight loss companies will encompass all of that, everything from food programs to coaching and support groups to help them maintain their weight and stay healthy.”

The report finds that patients taking the obesity drugs say they’re cutting back on sugary carbonated drinks (65%) and alcohol (62%). Almost one-fourth completely gave up alcohol. But Gianchandani says alcohol producers could benefit from the semaglutide craze.

“It’s going to capture a whole new market share. For them, it’s good,” she says, pointing out that alcohol producers are increasingly developing lower-calorie beverages. “They’re going to have a new product line to target a whole new demographic, and it will be millions of dollars of a market for them to benefit from.”
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The United Auto Workers union said Friday it will not expand its strikes against Detroit’s three automakers after General Motors made a breakthrough concession on unionizing electric vehicle battery plants. 

Union President Shawn Fain told workers in a video appearance that additional plants could be added to the strikes later. 

The announcement of the pause in expanding the strikes came shortly after GM agreed to bring electric vehicle battery plants into the UAW’s national contract, essentially assuring that they will be unionized. 

Fain, wearing a T-shirt that said “Eat the Rich” in bold letters, said GM’s move will change the future of the union and the auto industry. He said GM made the change after the union threatened to strike at a plant in Arlington, Texas, that makes highly profitable large SUVs. 

“Today, under the threat of a major financial hit, they leapfrogged the pack in terms of a just transition” from combustion engines to electric vehicles, he said. “Our strike is working, but we’re not there yet.” 

In addition to large general pay raises, cost of living pay, restoration of pensions for new hires and other items, the union wanted to represent 10 battery factories proposed by the companies. 

The companies have said the plants, mostly joint ventures with South Korean battery makers, had to be bargained separately. 

Friday’s change means the four U.S. GM battery plants would now be covered under the union’s master agreement and GM would bargain with the union “which I think is a monumental development,” said Marick Masters, a business professor at Wayne State University in Detroit.  He said the details of GM’s offer, made in writing, will have to be scrutinized. 

“GM went far beyond and gave them this,” Masters said. “And I think GM is thinking they may get something in return for this on the economic items.” 

GM, Ford and Stellantis declined immediate comment on Fain’s announcement. 

Shares of all three automakers rose after Fain’s announcement in apparent anticipation that deals might be near. GM’s shares ended Friday up almost 2%, Stellantis added 3% and Ford rose just under 1%. 

The automakers have resisted bringing battery plants into the national UAW contracts, contending the union can’t represent workers who haven’t been hired yet. They also say joint venture partners must be involved in the talks. 

They also fear that big union contracts could drive up the prices of their electric vehicles, making them more expensive than Tesla and other nonunion competitors. 

For the past two weeks the union has expanded strikes that began on September 15 when the UAW targeted one assembly plant from each of the three automakers. That spread to 38 parts-distribution centers run by GM and Stellantis, maker of Jeeps and Ram pickups. Ford was spared from that expansion because talks with the union were progressing then. 

Last week the union added a GM crossover SUV plant in Lansing, Michigan, and a Ford SUV factory in Chicago but spared Stellantis from additional strikes due to progress in talks. 

Automakers have long said they are willing to give raises, but they fear that a costly contract will make their vehicles more expensive than those built at nonunion U.S. plants run by foreign corporations. 

The union insists that labor expenses are only 4% to 5% of the cost of a vehicle, and that the companies are making billions in profits and can afford big raises. 

The union had structured its walkouts so the companies can keep making big pickup trucks and SUVs, their top-selling and most profitable vehicles. Previously it shut down assembly plants in Missouri, Ohio and Michigan that make midsize pickups, commercial vans and midsize SUVs, which aren’t as profitable as larger vehicles. 

In the past, the union picked one company as a potential strike target and reached a contract agreement with that company to be the pattern for the others. 

But this year, Fain introduced a novel strategy of targeting a limited number of facilities at all three automakers. About 25,000, or about 17%, of the union’s 146,000 workers at the three automakers are now on strike. 
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Падіння рубля до тризначної позначки проти долара в серпні призвело до того, що Банк Росії екстрено підвищив ставку на 350 базисних пунктів – до 12%
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The G7 group of rich nations is pushing for a ban on diamonds mined in Russia – the world’s biggest producer – following Moscow’s full-scale invasion of Ukraine last year. But as Henry Ridgwell reports, it will be difficult to stop Russian diamonds from entering the global market, which is worth $87 billion a year.
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