The risks to alcohol and food stocks from Ozempic-like weight loss drugs
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The rise of new anti-obesity medications could result in less alcohol consumption, impacting Club name Constellation Brands (STZ). The risk already seems to be playing out in food stocks with exposure to snacks and junk food. However, if necessary, the Mexican beer powerhouse behind Corona, Modelo and Pacifico could take action to mitigate any demand pressures. The weight-loss benefits of diabetes drugs such Novo Nordisk 's (NOVO) Ozempic and Club holding Eli Lilly 's (LLY) Mounjaro may turn out to be a headwind to not only alcohol makers — but also soda, snack food and fast-food companies. Novo Nordisk has already gotten U.S. regulatory approval for the active ingredient in Ozempic, semaglutide, to be prescribed to combat obesity. For weight loss, it's marketed under the name Wegovy. The active ingredient in Mounjaro, tirzepatide, is expected to get anti-obesity approval as soon as later this year. STZ YTD mountain STZ year-to-date performance. We don't thi