Snack and beverage maker PepsiCo has so far seen “negligible” impact on its business from drugs used for weight loss or diabetes, CEO Ramon Laguarta said during an analyst call Tuesday.

He added that the company is still watching these new drugs: “We are monitoring their development and potential impact.”

According to some food analysts, long-term use of semaglutide drugs like Ozempic and Wegovy, which suppress appetites, could significantly change consumers’ consumption habits. Companies in the food industry need to prepare for such a scenario, they say.

Semaglutide prescriptions rose 40-fold in the past five years, to about 1.7% of the American population in 2023. In Denmark, where Novo Nordisk, maker of Wegovy and Ozempic, is based, its popularity is already boosting the economy. Despite the fact that it’s still early days, the drugs could have a significant impact on people’s health, and how they eat.

The majority of large food makers have already reworked their portfolios to offer smaller serving sizes and healthier options before these drugs entered the market. Laguarta said PepsiCo has been doing the same thing, and these changes might help if obesity drugs end up having a significant impact.

“We believe that our portfolio strategy provides strong protection against potential threats

“One of these future developments is reducing fat, sugar, and salt in snacks and beverages, as well as selling smaller packages of products,” he said. In addition, there are still questions surrounding the drugs’ long-term effectiveness.

“Anything that’s good for human health is actually good for the company in the long run,” he said. It is likely that people will continue to snack in some form or another, he said. In order to meet changing consumer tastes, PepsiCo will adapt its product offerings if necessary.