This article is from the source 'bbc' and was first published or seen on . The next check for changes will be
You can find the current article at its original source at https://www.bbc.com/news/articles/clyd1p2njz2o
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| THG says high whey protein prices will a chunk out of profits | THG says high whey protein prices will a chunk out of profits |
| (about 1 hour later) | |
| The health and beauty firm behind the Myprotein brand has said its profits will fall by £13m because of the high price of key ingredient whey. | The health and beauty firm behind the Myprotein brand has said its profits will fall by £13m because of the high price of key ingredient whey. |
| Once regarded as a by-product in cheese-making, whey protein has become increasingly popular for use in smoothies, food and for people using injectable weight loss medications to prevent muscle wastage. | Once regarded as a by-product in cheese-making, whey protein has become increasingly popular for use in smoothies, food and for people using injectable weight loss medications to prevent muscle wastage. |
| THG, which also owns online cosmetics and skincare retailer Cult Beauty, blamed "substantially higher" prices for whey which reached a record over the past year and have stayed there. | |
| The company said that instead of passing on higher prices to customers, it would absorb the cost itself to grow market share. | The company said that instead of passing on higher prices to customers, it would absorb the cost itself to grow market share. |
| With consumers becoming more health conscious in recent years, demand for protein in food and drinks has risen. | With consumers becoming more health conscious in recent years, demand for protein in food and drinks has risen. |
| "You walk into a supermarket and everything is protein enhanced," said John Stevenson, retail analyst at Peel Hunt. "You can buy protein-enhanced puddings and yogurts and drinks." | "You walk into a supermarket and everything is protein enhanced," said John Stevenson, retail analyst at Peel Hunt. "You can buy protein-enhanced puddings and yogurts and drinks." |
| Weight-loss or GLP-1 drugs, such as Wegovy and Mounjaro, have also played a part in the rise, added Meredith Smith, consumer futures lead at market research firm Kantar | Weight-loss or GLP-1 drugs, such as Wegovy and Mounjaro, have also played a part in the rise, added Meredith Smith, consumer futures lead at market research firm Kantar |
| "The collective consumer consciousness is 'relearning' how to fuel their bodies and minds, and high protein has been a major priority reinforced with GLP-1 users," she said. | "The collective consumer consciousness is 'relearning' how to fuel their bodies and minds, and high protein has been a major priority reinforced with GLP-1 users," she said. |
| Myprotein, which sells a branded range of ready meals in Iceland and protein shakes with Muller, makes up a third of THG's revenues. | Myprotein, which sells a branded range of ready meals in Iceland and protein shakes with Muller, makes up a third of THG's revenues. |
| Underlying profit for the first six months of its financial year will fall to £24m from £37.1m in same period last year, the company said. | Underlying profit for the first six months of its financial year will fall to £24m from £37.1m in same period last year, the company said. |
| Sales from its nutrition business, however, are expected to grow by between 10% and 12% in the second half of the financial year. | Sales from its nutrition business, however, are expected to grow by between 10% and 12% in the second half of the financial year. |
| THG said Myprotein would "limit price its increases" over that period to increase its share of the market. | THG said Myprotein would "limit price its increases" over that period to increase its share of the market. |