Wonder Bread Owner Flower Foods Weather GLP -1 posted for uncertainty, CEO says

Dive brief:

• Flower foods are in the position of bread and pastry manufacturer to face the uncertain future bound by consumer use of GLP-1 drugs, Its top executive told analysts last week,
• Dave’s killer bread manufacturer recently pointed to weakness in bread space and said that it is difficult to point to a specific reason, Potential options include Healthy food trends, an economic recession and increasing prominence of GLP -1 drugs.
• Flower CEO Riles McMulian said that in the ready -made comments related to the company’s fourth quarter, consumers are moving away from traditional white and wheat bread, such as in other categories Discriminated and premium itemsThat Georgia Company has recently invested.

Dive Insight:

While flowering bread and butter can be white bread, the iconic staple is becoming a small part of the company’s future.

McMulian said that flowers are leading their portfolio to foods that are better for you and they have cleaner labels, which are part of the effort to align its offerings with the needs of consumers. These include Dave’s killer bread, an organic offering with no artificial materials or preservatives, and Grand CanyonWhich focuses on gluten free products.

recently, Flowers bought better mills of snack manufacturer for $ 795 millionThe procurement improved the growth possibilities of the bread manufacturer and diversified its portfolio with baking mix made of crackers, cookies, snack bars and healthy and recognizable ingredients.

Simple Mills, Dave and Grand Canyons are among those who can benefit if GLP-1 drugs prove to be a long-term trend, which is certainly away.

McMulian pointed to showing research that while consumers using GLP-1 initially buy less food and shift their purchases more in dense items of nutrients in the store perimeter, which is not last. He said that people taking GLP-1 drugs for weight loss eventually reverse the course and spend more on the center store items than before adoption.

McMulian said, “I don’t think anyone has fully understood it or knows what its long -term implications are.” “I think the important thing to note is that regardless of the result, we are positioning our portfolio to succeed in any environment.”

Found in a study released in January The use of GLP-1 drug cuts up to 6% grocery costsCalorie-dense, purchase of processed objects, such as chips, baked goods and cookies, were most affected. Broadly 14% of American adults have taken GLP-1 drugs to lose weight or manage diseases such as diabetes.

McMulian said that a lot of pressure in bread is focused on sweet cooked goods and traditional loaf products, such as white and wheat. At the same time, buns and rolls, breakfast and premium products have performed better.

Other brands of flowers include nature’s own and butter bread as well as bhogi snacks, such as Tasticek and Mrs. Freshali.

“We are targeting our innovation in those more promising areas,” said McMulian. “This investment is paying, as each of each of our major bread brands has received the unit and dollar share in the fourth quarter.”