There has been constant chatter on the potential impact of GLP-1 drugs, in the battle against obesity. In fact, the growing volume of this chatter makes it awfully hard to go a day, without seeing a commercial, or thought piece on the matter. If you are unfamiliar with the topic of GLP-1s, here is a quick explanation (click here)
With all of that being said, there is also much discussion on the unintended impacts, should GLP-1 drugs be as effective as early studies seem to imply. As investors, it is always important that we remain aware of the changing landscape, and matters that may affect how we allocate our capital. None of these potential impacts are a certainty, and there is no certainty that GLP-1 drugs will be the obesity saviour that they initially appear to be. But what if they are? Here are some interesting things to consider:
1- Fast food - I'm no stranger to the McDonalds drive through, but if these drugs sweep the world, there is a very real possibility that the drive thru line will be a heck of a lot shorter in the future. How will these companies respond?
2- More traditional weight loss businesses - I don't really know what this would look like, but even Weight Watchers is figuring out how to incorporate these into their program. Self preservation?
3- Grocery Stores - it's just a function of volume. If 40-50million Americans are eating less, then they are buying less at the grocery store no?
4- Airline efficiencies - this was admittedly a strange one for me, but I heard one analyst talk about increased fuel efficiency (overall based on millions of miles flown each year) if passengers overall were just a shade lighter. I'm trying to see how this cascades over to automotive fuel efficiency, and the environment, but I think I'm stretching things
This is just a sample of ideas to consider, but I think this is something we should pay attention to. It's early days, unproven, and small scale......but I wouldn't ignore it.