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Jim Cramer Warns Weight Loss Drugs Ozempic, Wegovy And Others Could Impact Food Stocks: ‘That Day Will Come’

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Jim Cramer, the host of CNBC’s “Mad Money,” has issued a warning to investors about the potential impact of weight loss drugs, such as Ozempic and Wegovy, on the food and beverage industry.

What Happened: Cramer cautioned investors on Monday about the growing popularity of GLP-1s, a new class of weight loss and diabetes drugs, such as Mounjaro and Zepbound, reported CNBC.

He advised investors to be cautious with food and beverage stocks, as the increasing use of these drugs could potentially lead to a significant decline in the industry. “Stay away from these food and beverage stocks because there will be a day, that day will come, when one of them finally admits they’ve been hurt by the GLP-1s, and that will take down every stock in the group,” he said.

He also highlighted other factors that could contribute to a decrease in sales for food and beverage companies. While companies like PepsiCo Inc PEP attribute their declining sales to a reduction in consumer disposable income, Cramer suggested that the decline could also be linked to rising prices or a shift in consumer preferences towards cannabis products.

“In the end, we just don’t know what’s the impact of the GLP-1s versus everything else,” Cramer said. “However, you’re fooling yourself if you think these drugs didn’t play some sort of role.”

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Despite the uncertainty surrounding the future impact of these drugs on food stocks, Cramer emphasized that they will undoubtedly bring about significant changes in the market.

Why It Matters: The warning from Cramer comes at a time when the pharmaceutical industry is witnessing a surge in the popularity of weight loss drugs. Companies like Eli Lilly and Co LLY have been expanding their market share with drugs like Tirzepatide.

Moreover, Cramer’s warning aligns with his previous insights into changing consumer behavior. He has previously suggested that the rise of cannabis is impacting alcohol sales, a trend that could also be influencing the food and beverage industry.

Read Next: Bitcoin Tastes $48,000 As Ethereum And Avalanche Follow, Led By Record ETF Asset Inflows: The Week In Retrospect

Image Via Shutterstock


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