Lean and mean

OZEMPIC? NOW?

“We believe the demand will outgrow supply.”

(Getty Images)

GLP-1 use is still skyrocketing. So why is the business world talking about it less?

Everyone wants it. No one wants to say it.

Rani Molla

6/10/24 8:00AM

GLP-1 agonists, a type of medication used to treat obesity, are big business and only growing.

All things considered, Goldman Sachs expects the market size to grow from about $10 billion now to around $100 billion by the end of the decade. Bank of America expects 15% of US adults to be on a GLP-1 a decade from now, up from just single digits today.

“There is a very, very significant demand,” Lars Fruergaard Jorgensen, CEO of Novo Nordisk, which makes Ozempic and Wegovy, told CNN last month. “So for the foreseeable future, we believe the demand will outgrow supply.”

Search interest for GLP-1 and related queries is still around an all-time high. Finally, pill versions of the drug type have shown promise in medical trials, meaning it could be accessible to a lot more Americans soon.

And yet, companies haven’t been talking as much about GLP-1s on earnings calls as they had been last year.

Why not?

There could be a few reasons beyond the fact that what companies say on earnings doesn’t necessarily mean anything.

While GLP-1s are a big deal, they’re not exactly new anymore. While many companies outside the healthcare and pharmaceutical industries initially mentioned how the rise of GLP-1s might affect their business, many seem to have acknowledged it and moved on.

Coca-Cola said it makes diet drinks, so weight-loss trends aren’t a problem. Danone pointed out that its products like yogurt are high in protein and low in fat. It came up on Walmart earnings calls but nothing substantial was said and, given the breadth of Walmart’s offerings, its impact probably can’t be that substantial.

Indeed it was always a stretch for consumer goods companies like Coca-Cola and Walmart to try and speculate about any meaningful change to their bottom line as a result of weight-loss drugs.

Even at companies that do make competing products, the effects could be muted. Johnson & Johnson said that while it’s not getting into the GLP-1 business and the drugs could negatively affect its MedTech business, which manufactures materials for bariatric surgeries, it might also help MedTech! People who don’t tolerate the drugs might try surgery, and the drugs could also be used in conjunction with the surgery, the company said.

Another reason for the relative quiet on GLP-1s? Perhaps AI is sucking all the air out of the room.

Companies only have room to obsess over one mega-trend at a time, and at this point in time that’s artificial intelligence, which seems to be turning many stocks it touches to gold (for now). And AI is much more broadly applicable than weight-loss drugs — and companies in pretty much every industry are trying to weave it into their businesses (or at least make a show of doing so).

Or maybe Ozempic’s inclusion on South Park — a common harbinger of underperformance — was actually a sign of everyone being tired of this conversation.

Max Knoblauch6/15/26

Electronic Arts launches a platform to put more ads in its games

Video game publishing giant EA launched a new platform on Monday designed to make the process of selling immersive ad space in its popular games easier.

The company says the platform, called EA Advertising, allows brands to “integrate directly into gameplay through dynamic, real-time placements, from stadium signage to custom in-game content.”

More so than other studios, EA has incorporated advertising into its most popular titles. As Kotaku points out, the company’s ad efforts stretch as far back as 2006. Several of its sports franchises already feature partnerships with brands like Visa, Lowe’s, Red Bull, and PepsiCo.

In-game advertising hasn’t exactly been embraced by fans, but industry experts expect it to ramp up as companies seek more revenue to offset higher games budgets and surging memory costs. EA rival Take-Two has taken a different approach, with CEO Strauss Zelnick recently saying the company was “not at risk of doing brand partnerships” in the forthcoming “Grand Theft Auto VI,” and that ads in full-price games seems “unfair.”

The $55 billion deal to take EA private, led by Saudi Arabia’s Public Investment Fund, is set to close at the end of this month. Being the largest leveraged buyout in history, EA will likely look for more ways to boost revenue to cover interest payments.

Electronic Arts Makes Push for Ad Dollars Tied to Sports

Millie Giles6/11/26

JM Smucker says it sold $1 billion worth of Uncrustables in FY2026

After years of booming sandwich sales, JM Smucker has finally earned a billion-dollar crust.

On Tuesday, the company reported results for fiscal year 2026, highlighting better-than-expected profits driven by higher prices for coffee and sweet baked goods. However, at another point on the earnings call, CEO Mark Smucker pointed to one particularly jammy figure: in line with previous forecasts, the company sold $1 billion worth of its (almost always) crustless sandwiches, Uncrustables, in the last year alone.

Max Knoblauch6/8/26

Paramount reportedly offers concessions to resolve multistate antitrust investigation

Paramount has reportedly offered up some concessions in an effort to prevent an antitrust lawsuit by California and about 10 other states, according to Bloomberg reporting on Monday.

Reuters first reported on the potential suit from a group of unnamed states last week, which could throw a wrench in Paramount’s plans to buy rival Warner Bros. Discovery in a Hollywood megamerger.

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

Paramount Offers Concessions to Head Off State Antitrust Lawsuit

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

$98B ⛽

Max Knoblauch6/8/26

The IATA released its latest financial outlook for the airline industry over the weekend, forecasting a $98 billion jump in the sector’s collective fuel bill. The world’s largest trade group representing airlines expects the oil spike to halve profits by 49% from last year to $23 billion.

The group also expects profit margins to halve year over year, falling from 2025’s 4.2% to 2%. Still, revenue is expected to climb to $1.17 trillion from $1.07 trillion.

A surge in the cost of jet fuel has rocked US and global airlines this year, leading Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, JetBlue, and others to raise fares and ancillary charges like bag fees. Low-cost carriers, which operate on smaller margins, have been squeezed the hardest, resulting in Spirit’s shutdown.

“It’s a tough year for all airlines, especially those whose balance sheets had not yet recovered from COVID. And, of course, for those operating in the Gulf,” said IATA Director General Willie Walsh, who added that demand is holding up and about half of passengers expect to spend more on travel this year. “That bodes well for a strong northern summer peak season. The big unknown is how long travelers and shippers can tolerate the higher costs of connectivity.”