Mad Money

Cramer says weight loss drugs could bring down stocks in the food and beverage sector

Key Points
  • CNBC's Jim Cramer on Monday told investors to be wary of snack food and beverage stocks as weight loss drugs captivate Wall Street.
  • "Stay away from these food and beverage stocks because there will be a day, that day will come, when one of them finally admits they've been hurt by the GLP-1s, and that will take down every stock in the group," he said.
GLP-1 numbers are too huge for them not to impact consumer behavior, says Jim Cramer
VIDEO1:4401:44
GLP-1 numbers are too huge for them not to impact consumer behavior, says Jim Cramer

CNBC's Jim Cramer on Monday told investors to be wary of some food and beverage stocks as investors are captivated by companies that make newly popular GLP-1s, weight loss and diabetes drugs such as Mounjaro and Zepbound.

"Stay away from these food and beverage stocks because there will be a day, that day will come, when one of them finally admits they've been hurt by the GLP-1s, and that will take down every stock in the group," he said.

But there are other variables that could contribute to weaker sales for food and beverage companies, he said. Many in the industry deny that GLP-1s are hurting sales and changing consumer behavior.

PepsiCo admitted its snack business is suffering, but attributed those declines to a consumer that has less disposable income. Cramer added that liquor companies are also seeing declines, but said this could also be due to inflated prices or perhaps to consumers choosing to use more cannabis products.

Cramer conceded that it's hard to predict just how much these drugs will affect food stocks going forward, but said they will definitely change the market.

"In the end, we just don't know what's the impact of the GLP-1s versus everything else," he said. "However, you're fooling yourself if you think these drugs didn't play some sort of role."

Are weight loss drugs to blame for a decline in gym sign-ups? Jim Cramer investigates
VIDEO3:4403:44
Are weight loss drugs to blame for a decline in gym sign-ups? Jim Cramer investigates

Jim Cramer's Guide to Investing

Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest smarter.

Sign up now for the CNBC Investing Club to follow Jim Cramer's every move in the market.

Disclaimer

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com