Pharmaceutical giant Eli Lilly Australia’s latest accounts lodged with ASIC show sales of its GLP 1 drug Mounjaro more than tripled between 2024 and 2025. Meanwhile, 47% of legal drinking aged Australians reduced their alcohol intake according to consumer research conducted by Shop! ANZ and Vypr.

And the drinks industry is reeling from the double whammy.

Coles confirmed in May that GLP-1 weight-loss drugs such as Ozempic are impacting sales at its supermarkets and liquor stores.

GLP-1 users generally drink less alcohol, with Coles Liquor experiencing a decline in bottle-shop revenue in the March quarter. Sales hit $781 million, down from $813 million a year earlier.

CEO Leah Weckert told the Macquarie Australia Conference: “One of the big factors which is contributing to the liquor market in the US is the number of people that are taking a GLP-1 drug, which does impact how much liquor you tend to consume.”

Pill versions of GLP-1 weight-loss injectables have recently gone on sale in the US and UK, with experts fearing they will have a major impact on the drinks industry.

While Eli Lilly has declined to specify whether its increased sales are attributable to consumers with obesity or type 2 diabetes buying the product, its clear Australia has become a billion-dollar market, with profits surging from $280.4 million to $1.04 billion in just 12 months.

“Sales data for Mounjaro is commercial in confidence. Like other markets globally, there is a strong demand for the incretin class (gut hormones that lower blood sugar after eating) of medicines in Australia,” an Eli Lilly spokesman told The Australian.

New analysis by FTI Consulting estimates that GLP 1 adoption could cut cumulative US alcohol consumption by approximately 2.5% through to 2035.

“Unlike food categories that can be reformulated around protein or fibre, alcohol’s core product is inherently caloric, leaving companies with few levers beyond low- and no-alcohol extensions,” the business advisory firm said.

“Here too, premium spirits and flavour forward mixed drinks tend to maintain their consumption, relative to other spirits and alcoholic beverages (such as hard seltzers). In our survey, 31% to 36% of our cohorts have reported reduced alcohol consumption after starting a GLP-1 regime.

“Non-alcoholic drinks rule the roost for current GLP-1 users. However, consumption occasions remain relevant to these users, with respondents indicating that they were more likely to choose premium alcoholic beverages and flavor forward mixed drinks and less likely to pick higher volume drinks such as beer, wine and spirits.”

FTI Consulting warns that companies that treat GLP-1 as a passing disruption rather than a structural shift in how people relate to food and beverages are taking a significant strategic risk.

“Yet the story is not uniformly one of decline,” FTI said. “The 35-54 cohort is the key commercial segment here: unlike older users who are broadly cutting back, this group is eating out more (38% report increased frequency), spending more per occasion and trading up in quality.”

Its advice?

“On innovation, R&D pipelines should be oriented toward muscle preservation, digestive support and satiety management at lower caloric loads,” FTI said.

“On communication, GLP-1 users are more intentional label readers than the average consumer — messaging that aligns with their health priorities will build the trust that this cohort responds to.”