Weight loss drug boom fuels hike in Pic’s Peanut Butter US exports
Surging global demand for weight loss drugs have seen a boom in Pic’s Peanut Butter exports, the company says.
Pic’s export volumes to North America have more than doubled since a United States nutrition company singled out the Nelson-based brand’s peanut butter as a key ingredient for its protein bars.
Increasing demand for “nutrient dense” protein products is being tied to exponential growth globally in the number of people taking GLP-1 weight loss medication, who rely on a high-protein diet.
The Crown entity responsible for developing New Zealand exports, New Zealand Trade and Enterprise (NZTE) said the boom in the drugs created new export opportunities for Kiwi food and beverage companies.
Pic’s Peanut Butter said it was approached by US nutrition brand, Lineage Provisions, to provide peanut butter for protein bars launched by the company last month.
Pic’s customer and sales lead Danielle Esplin said it had a preferential supply arrangement worth hundreds of thousands of dollars,
“There is strong demand ongoing, to the point where they air freighted bulk containers of Pic’s peanut butter over to the USA for launch.”
The development came after the US company undertook extensive taste testing of peanut butter, including Pic’s, which was known as New Zealand’s market leader, Esplin said.
“We’re natural peanut butter; A grade, high hi-oleic peanuts, so that’s a point of difference versus many US-made peanut butters.”
The two companies’ values aligned around sourcing and sustainability, with Pic’s solar roasting its peanuts, among other sustainability initiatives, Esplin said.
The development was down to GLP-1 uptake; a long-term consumer shift that had been building “in mainstream consumer-land, especially in the states”, she said.
The drugs suppressed appetite and slowed stomach digestion, which could cause rapid weight loss, and high protein intake was advised to help protect lean muscle tissue.
NZTE spokesperson Daniel Taylor said Kiwi food and beverage companies were well-placed to leverage opportunities created by the global weight loss drug trend.
Consumers were becoming more selective about what they bought, he said.
US research showed within six months of starting GLP-1 medication, a person’s grocery spending dropped by 5%.
Spending on fast-food dropped by 8%, with a 10% decline in savoury snack purchases, and sweet snacks like cookies and pastries close behind.
But demand was growing for nutrient-dense, protein-rich products, including dairy, lean meat, seafood and fresh fruit and vegetables, Taylor said.
“The Nelson region is really well positioned to take advantage of that … [with] really high quality seafood, an absolute fruit basket and lots of functional foods.
“Companies across Nelson and indeed right across New Zealand have the ability to take advantage of this change.”
Taylor said the shift could put increased pressure on products that were higher in fat or lower in protein, with consumers switching away from that.
But the change in buyer behaviour created other opportunities, he said.
A global trend of reduced spending on alcohol for example had seen “massive growth” in low or no alcohol wines, beers and drinks mixers.
Kiwi exporters were renowned for their flexibility in understanding changing consumer demands and tastes, and delivering on that in a timely manner.
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