Latest news with #DavidNavazio
Newsweek
3 days ago
- Health
- Newsweek
Ozempic Is Costing Grocery Stores Billions
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. GLP-1 medications, including Ozempic and Mounjaro, are already costing grocery stores billions. According to a new report from Big Chalk Analytics, GLP-1 users have cut $6.5 billion from U.S. grocery spending, and the popularity of the weight loss and diabetes medications appears to only be growing. Why It Matters The use of weight-loss medications called glucagon-like peptide-1 (GLP-1) receptor agonists has skyrocketed in recent years. Popular products include Ozempic, Mounjaro, Wegovy and Zepound and have been key treatments for many Americans who are obese or have type 2 diabetes. While the full health effects of these drugs in the long term has not been studied, their prevalence has shown the potential to disrupt industries by lowering grocery and even restaurant profits in the long term. People shop at a grocery store in Brooklyn on May 13, 2025 in New York City. People shop at a grocery store in Brooklyn on May 13, 2025 in New York To Know While GLP-1 medications are already reportedly costing grocers $6.5 billion, the impact could be even costlier in the years to come as 8.3 percent of Americans are planning to start the medications, according to the new Big Chalk survey of more than 4,500 consumers. If this happens, the survey projects losses as much as an additional $4.4 to $10.8 billion. "The changes being seen in grocery stores are the result of people making better choices about food –less ultra-processed food and possibly less food overall," David Navazio, CEO of health care product company Gentell, told Newsweek. Several types of products have seen their purchase rates go down, from cereal and soft drinks to lunch meats. Currently, an estimated 11.2 percent of U.S. adults are on GLP-1 medications, but roughly 20 percent could soon be on the medication in just 12 months. "It's one of the fascinating business 'side effects' of medications like Ozempic that grocery stores are seeing a dip in business," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. "The idea is these medications suppress hunger, which is causing consumers to purchase food less. And while there is certainly some truth to this, it's too soon to call it a long-term trend. Financially, it can be seen as a good thing for money-strapped customers who can reduce their grocery bills along with their waistlines. Whether or not this economic impact is a lasting one remains to be seen." So far, the medications have triggered grocery volume losses of 1.2 to 2.9 percent, with dollar sales dropping between 0.9 and 2.3 percent, depending on the category, according to the report. GLP-1 users were 65 percent more likely to buy smaller packs of cereal and 48 percent more likely to purchase smaller packs of lunch meats. This extended to soft drinks as well, with those on the medication 36 percent more likely to opt for the smaller sizes. "The opportunity for grocery brands is twofold: A continued migration toward better-for-you products—plus an emphasis on smaller pack sizes—are ways CPG brands can adapt to these changing consumer demands for volume," Rick Miller, partner and marketing effectiveness practice lead at Big Chalk, told Newsweek. What People Are Saying Rick Miller, partner and marketing effectiveness practice lead at Big Chalk, said in a statement: "GLP-1s have crossed the household-penetration threshold where their impact on grocery volumes and dollar sales can no longer be ignored. We're past anecdotes. This is measurable, structural change. Brands and retailers must rethink assortment, pricing, and promotion for a shopper who is literally consuming less." David Navazio, CEO of health care product company Gentell, told Newsweek: "We will see changes in product selection as a result of the changes in people's buying habits, with an emphasis on whole foods, produce, lean meats." For grocery stores, it may take time to adapt. But the change is undoubtedly good for the country as a whole that our population is becoming healthier." Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "Like anything else, this comes down to supply and demand. If grocery stores are seeing a drop in volume, the next step would usually be lower prices. That's not what we're seeing. Grocery prices were up another 0.3 percent in June, according to the latest CPI data. So if grocers are losing, I'm not quite sure who's winning yet." Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: "At any given point in time, there is one part of the economy that is booming at the expense of another. This is just the normal oscillation around economic equilibrium. In very general terms, being less obese is healthier, and I think it is a good thing overall to having a healthier population. Grocery stores will slowly adapt to new eating and shopping habits, which will have knockoff effects in other sectors, while some parts of the economy will see increased spending that can be attributed to GLP-1 use." What Happens Next Beyond the economic impacts, the long-term implications of GLP-1 medications on health are still being studied. A recent study discovered a new link between taking GLP-1 drugs and elevated risk of pancreatitis and kidney conditions, including kidney stones. GLP-1 medications are also tied to a higher risk of digestive problems, including nausea, vomiting, diarrhea, and even stomach paralysis in rare cases. For the business economics of grocers reacting to the uptick in GLP-1 usage, prices have not adequately shifted yet, Thompson said. "America has an obesity problem. If these drugs are helping people eat less and live healthier lives, that's a net positive," Thompson said. "But in a capitalist economy—if Adam Smith's invisible hand is really at work—we should be seeing food prices and health care costs fall also. That's not happening. Health care continues to rise at an alarming rate, and food prices are still climbing. Long term, we might expect some price relief, but we're not there yet."
Yahoo
25-06-2025
- Business
- Yahoo
GENTELL EXPANDS GLOBAL FOOTPRINT WITH ACQUISITION OF WOUND CARE MANUFACTURER, CASEX, IN LATIN AMERICA
NEWTOWN, Pa., June 25, 2025 /PRNewswire/ -- David Navazio, President and CEO of Gentell and Affiliated Companies, the largest vertically integrated wound care company in the world, announced his company's acquisition of Casex, a leading Latin American manufacturer of ostomy and wound care products, on June 5, 2025. The acquired company will be rebranded as Gentell and distribute products under the Gentell name. Said Navazio, "Gentell's acquisition of Casex facilitates and enhances our growth in South America by taking advantage of existing relationships and product registrations, while at the same time enabling opportunities in the U.S. to expand our ostomy product line." Founded in 1985, Casex operates manufacturing facilities in Brazil and Paraguay and ships its products throughout South America and around the world. Casex is a leader in the ostomy products field, producing colostomy bags, ileostomy, accessories and dressings. It also manufactures advanced and traditional wound care products. Navazio says, "I'm especially excited about our Casex acquisition because our corporate cultures are so compatible which will enable us to hit the ground running, but also more quickly take advantage of the "1+1=3" growth concept as we continue to build Gentell around the world." Gentell is the largest vertically-integrated wound care manufacturer in the world, with manufacturing plants in the U.S., Canada, the United Kingdom and South America, as well as facilities around the world. The company manufactures and supplies efficient, affordable patient-specific wound care products to nursing homes, home care, hospices and other care settings. It has also developed highly advanced wound care record-keeping and logistics delivery systems to its customers. Gentell1000 Floral Vale Blvd., Suite 400Yardley, PA 19067 USAToll Free: 1-800-840-9041Phone: 215-788-2700 Fax: 215-788-2715 Website: /in/davidnavazio/company/gentellTwitter: @gentell 2701Facebook: For more information or to schedule an interview, please contact:Leo Levinson – 215-545-4600leo@ View original content to download multimedia: SOURCE Gentell Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
8 Tough Money Choices Tariffs Are Forcing on Americans in 2025
Living in a high-tariff economy is making everyday goods and services more expensive, yes, but it's also putting many Americans in tough spots. Many consumers are having to rethink their shopping, spending and budgeting habits. Find Out: Read Next: Experts explained some of the tough money choices tariffs are forcing on Americans this year. It's one thing to cut back on leisure items or dining out, but tariffs are putting Americans, particularly low- and middle-income families, in a tough spot by making even their necessities, such as personal care and groceries, more expensive, according to David Navazio, CEO of Gentell. 'These are purchases that cannot be deferred so they have no choice but to pay whatever the cost is.' More affluent families can absorb price increases more easily and defer purchases of nonessential items like cars, luxury goods and so on, he pointed out. But the rest of America is struggling. Check Out: Since the U.S. government is the largest purchaser of drugs, medical and healthcare products through its insurance programs (Medicare and Medicaid), Americans are going to be making tough choices about their health, Navazio said. 'Price increases on these goods will ultimately be borne by taxpayers in the form of higher taxes.' Whether this leads people to put off care or medications they need is yet to be seen but it doesn't bode well for the cost of care. Perhaps the most typical economic trade-off as a result of tariff-induced inflation 'is the compromise between affordability and quality,' according to William London, an international business lawyer and partner at Kimura London & White LLP. 'Most consumers have to opt for cheaper, lower-quality options or cut back on expenses entirely to fit their budgets,' he said. The categories most affected by these inflated prices include electronics, appliances, construction materials and everyday household goods like food and clothing, he said. People will have to turn to bulk purchases, generic store brands or secondhand markets to stretch their dollars. Another unfortunate result of higher prices, London said, is a greater consumer usage of credit cards and personal loans, 'which is risky financially in the long term.' Consumers are cutting discretionary spending, such as dining out, entertainment and travel, but they may still have to go into debt to afford some of their essentials like housing, utilities and food. Tariffs are also persuading individuals to delay making or reduce their payments toward retirement accounts, home down payments or schooling funds, London said. He recommended that people 'systematically prioritize basic needs first, eschew taking on high-interest debt whenever possible and have a modest level of long-term savings to safeguard future financial health.' Unfortunately, one of the not often discussed impacts of tariffs is how they 'gradually take away purchasing power over time,' he said. This can have a long-term ripple effect on households, forcing constraints on their financial mobility for years to come. Tariffs don't just affect products themselves, but the costs of shipping, thus who consumers are willing to buy from, according to Michael Podolsky, consumer advocate, CEO and co-founder of a consumer advocacy and review website. Consumers are noticing the trickle-down impact of tariffs on the costs of their delivery services like UPS and FedEx. 'Others are caught off guard by additional fees at the checkout with platforms like Amazon. Common consumer reactions include canceling orders, refusing deliveries or switching to different platforms,' Podolsky explained. These tariffs are placing an extra financial burden on consumers' budgets, Podolsky said. 'Middle- and low-income U.S. citizens living from paycheck to paycheck may be hit the hardest, often facing higher prices, late deliveries or out-of-stock items.' This is especially challenging for families with tight budgets, as the tariff-related costs make affordable retailers less accessible to their incomes, forcing them to prioritize essentials over other purchases, he explained. Since even companies that once could boast the cheapest prices of all are hit with tariff-related price hikes, people are changing where and how they shop, and redefining who is 'affordable.' Podolsky said that consumer reviews highlight these frustrations as they can no longer shop at places where they 'typically' spend money. 'Many consumers express a desire to cancel orders and stop shopping with retailers that apply tariff-related fees,' he said. He recommended choosing retailers that clearly disclose their tariff-related policies to help avoid misunderstandings and unexpected charges. 'Additionally, consumers should review their spending habits by prioritizing needs over wants. Finding local alternative products may also help navigate rising prices,' he said. In a high-tariff economy, every dollar counts. More From GOBankingRates 5 Cities You Need To Consider If You're Retiring in 2025 Sources David Navazio, Gentell William 'Bill' London, Kimura London & White LLP Michael Podolsky, This article originally appeared on 8 Tough Money Choices Tariffs Are Forcing on Americans in 2025 Sign in to access your portfolio
