(Bloomberg) -- Danone stands to benefit from the worldwide demand for anti-obesity treatments as its products can help consumers remain healthy while they try to lose weight, the yogurt maker’s chief executive officer said.
“We help muscular mass, muscular recovery, we help our gut health,” Antoine de Saint-Affrique said in an interview with Bloomberg TV. “Our products are very complementary to the anti-obesity products, they are healthy products.”
Ozempic and other weight-loss drugs from Novo Nordisk A/S and rival Eli Lilly & Co. are spearheading a new drug sector that’s estimated to generate as much as $130 billion in sales by the end of the decade. Danone is among a group of companies riding the wave with products hoped to ameliorate potential side effects like muscle loss.
The maker of Activia yogurt is also looking to win over consumers with a focus on science-backed nutrition and health, while expanding sales of specialized nutrition for sick people, a profitable segment.
Danone is in the third year of a turnaround effort after a governance crisis saw its former chairman and CEO ousted. Since then, the company has revamped management, which has delivered two quarters of volume growth after a period of expansion that was driven only by higher prices.
The shares were little changed as of 11:27 a.m. in Paris.
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