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Key Takeaways Shoppers are increasingly turning away from Big Food products and moving towards fresh foods and cleaner ingredients.
Weight-loss drugs are a major reason why customers are ignoring the calorie-heavy, ultraprocessed food found in the center of grocery stores.
Big Food stocks are now trading at their steepest discount in at least 20 years.
Faced with falling profits, the biggest food names in America have recently begun rolling out initiatives to win customers back. Companies such as General Mills and Kraft Heinz have reduced prices, intensified marketing campaigns and infused protein into recognizable products, from Cheerios to Goldfish, to lure back shoppers.
Despite their best efforts, these companies have yet to see results. According to a recent report from The Wall Street Journal, consumers are increasingly turning away from Big Food products and moving towards fresh foods and cleaner ingredients. They are ignoring the calorie-heavy, ultraprocessed foods found in the center of grocery stores.
Weight-loss drugs are a major reason for the transition, per the Journal. More than 10% of American adults now take a GLP-1, and that percentage continues to rise.
Big Food management keeps pointing to “stressed consumers” and promises things will turn around. However, the numbers tell a different story — they show that these companies are shrinking and don’t have a viable plan to fix it.
According to the Journal, Big Food stocks are now trading at their steepest discount to the broader market in at least 20 years.
The economy contributes to the decline
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