Fat loss jabs cutting profits at sausage roll chain bakery Greggs

The popular bakery has posted low profits and a muted forecast as changes in eating habits cause people to move away from some of the company’s signature snacks

Popular bakery Greggs has revealed that the rise of people using weight loss jabs has “no doubt” caused a dent in its profits.

Appetite supressing drugs have led to people looking for “smaller portions” and focusing on “protein and fibre” and much healthier options, Greggs CEO, Roisin Currie has said. There is a “broader health trend” emerging in the food market, she said.

It comes as the company – which has previously had big hits with its vegan sausage roll and vegan steak bake offerings – has reported low profits and a muted forecast for the upcoming year.

However, the company is aiming to meet the new demands as people move away from high-fat pasties, cakes and pastries and has said it is rolling out smaller portions and protein-rich products.

In July last year, Greggs launched its egg-pot alongside its popular ‘eggs at Greggs’ campaign.

Currie explained that the company has to meet the needs of people taking weight loss drugs and to “make sure that we’ve got some of the snack products that customers are looking for”.

Greggs isn’t the only firm that has reported a change in buying, spending and eating habits as a result of the rise in weight loss drugs.

Tesco said on Thursday a trend towards healthier eating had contributed to growth in its fresh produce sales.

Chief executive Ken Murphy said the group was watching customer habits “very closely” alongside the rise in weight loss medication and said the supermarket had a range of “GLP-1 friendly” products.

He said “Clearly our strongest source of growth this year has been in fresh food, and that is, by far and away, the best thing people can eat.

“We also have a […] range of high protein products across a number of different categories that also work very well in that context. So I think we’re well set to respond to any trends in healthier eating.”

Consumer analyst Clive Black, from Shore Capital, said the slight dip in the volume of groceries sold over Christmas compared with the year before was “perhaps the clearest indication of the impact of glucagon-peptide (GLP) drugs upon the nation’s eating habits.”

Recently, a ban came in to force across the UK banning adverts for junk foods before 9pm, which the government said was to help stem rising rates of obesity.

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