By Evie Liu

Packaged-food giant Conagra Foods is hoping to appeal to people taking weight-loss drugs with frozen entrees like chicken fettuccini alfredo or meatball marinara.

Starting in January, 26 items in Conagra's Healthy Choice frozen meal line will feature an "On Track" badge on the package and the phrase "GLP-1 Friendly," indicating that these products are high in protein, low calorie, and a good source of fiber.

That, according to the firm, make them particularly suitable for users of GLP-1 medications.

GLP-1 drugs such as Ozempic and Wegovy help manage Type 2 diabetes and support weight loss by suppressing users' appetites. They are currently used by nearly 15 million U.S. adults. Investors have been worried the medications' rising popularity could dent sales for food companies, especially for high calorie items such as candies and soda.

People who take GLP-1 drugs eat less, but they often focus on consuming foods that are higher in protein to offset lost muscle mass and higher in fiber to help with digestion.

While the recipes of the selected Healthy Choice meals remain the same, the new badge on the packages could help consumers "easily identify nutritious and convenient options that suit their dietary needs," said Conagra in a statement.

Other big food companies, including Nestlé, have also introduced products specifically designed to meet the dietary needs of weight-loss drug users.

But while the packaging on these items usually highlights the products' nutritional value and their weight-loss functions, they don't contain labels specifically referring to GLP-1 drugs.

Conagra said Healthy Choice is the first major food brand to call out "GLP-1 Friendly" on the package. The company said it received approval for the new label from the Department of Agriculture in October.

This could encourage more companies to apply similar labeling and marketing messages targeting GLP-1 users. That could be good news for the packaged-food industry, which has struggled with sales weakness as consumers tighten their wallet amid high grocery prices.

Frozen meals, often associated with pizzas and fries, don't particularly have a reputation for being healthy. But brands like Conagra's Healthy Choice and Nestlés Lean Cuisine have been trying to appeal to those consumers who are more aware of their diet and health.

That crowd is expected to grow, and they'll be seeking convenient options to control their meal portions as well as nutrition intake. The new marketing strategies aiming at GLP-1 users could give these products some renewed appeal.

"The increased use of GLP-1 medications presents an exciting opportunity to support Americans managing diabetes and weight loss, as well as those seeking to lead a healthier lifestyle," said Bob Nolan, vice president for demand science at Conagra Brands, in a Thursday statement.

Conagra stock gained 1.2% on Thursday, but is down 4.9% this year.

Write to Evie Liu at evie.liu@barrons.com

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December 12, 2024 17:27 ET (22:27 GMT)

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