Analysts expect that trend to accelerate now that pill forms of the drugs are on the market. The FDA approved Novo Nordisk’s Wegovy pill late last year, followed by Eli Lilly’s orforglipron –– which goes by the brand name Foundayo –– in April, giving patients a needle-free and often cheaper alternative to the injectable versions that have driven the market so far.

Food processors have started responding to shifting demand patterns by offering new products with higher protein content and smaller portions. Some manufacturers have also relabeled products as “GLP-1 friendly” and are working directly with large retailers to better market to this growing segment.

As GLP-1 adoption continues to grow, many manufacturers are capitalizing on the opportunity to develop new products and retool existing lines to meet demand for more nutritional options. But moving quickly also carries risk that, if not managed carefully, can result in costly claims, recalls or litigation down the road.

Emerging risks

Reformulating existing products or launching new ones to meet GLP-1 driven demand requires much more than just swapping a few ingredients. It requires new suppliers, new production lines, new packaging and updated safety protocols. These types of changes introduce risks that manufacturers must be aware of and take steps to address before they turn into a costly insurance claim.

Some of the risk points:

º Supply chain: As companies make changes to their product lines, they will likely need to add or change suppliers. This can increase competition for the same raw materials and leave companies exposed to disruption if a key ingredient becomes scare. Diversifying suppliers and having a backup source in place can help reduce that exposure.

º Production line: Retooling a line to make a new or reformulated product increases the risk of malfunction or system failure, especially when it comes to entirely new products. It’s critical that food safety protocols keep pace with any production line changes and for employees to be properly trained on new equipment before full-scale production begins.

º Recall: Recalls tied to food safety issues or mislabeling are already a persistent risk across the industry –– that risk grows significantly when companies produce a product that’s never been made before. Testing, quality control checks and clear labeling review before a product launch can help spot any issues before it hits shelves.

º Worker: New products, new lines and new packaging often mean employees taking on unfamiliar tasks. Proper training and updated safety planning can help mitigate the risk of workplace injuries and the liability that comes them.

º Packaging: Class action lawsuits linked to misleading language on packaging, such as “all natural,” have been on the rise in recent years. In fact, class action filings against food & beverage makers reached nearly 300 in 2024, a near record high. Labeling a product as “GLP-1 friendly” can attract similar scrutiny, making accurate, careful labeling paramount.

The risks are manageable

These risks are real, but they’re manageable with the right mitigation steps and insurance coverage in place.

The insurance market is currently working in manufacturers’ favor. For example, product recall coverage remains competitive, with many carriers willing to write coverage. And business interruption insurance can help backstop against supply chain disruption.

Many food and beverage makers haven’t fully identified or addressed these risks yet, given how quickly the GLP-1 landscape is evolving. Before making changes to products or launching new ones, involve your insurance broker. They can conduct a thorough review to pinpoint exposures, help put targeted risk reduction strategies in place and ensure the right coverage is secured before a claim arises.

Mary Keiser, CPCU, is senior vice president and the U.S. Food and Beverage Practice Leader for global insurance brokerage Hub International. Mary specializes in addressing the unique challenges facing food manufacturers, contract brewers, distributors, retailers, warehouses and restaurants – from product contamination and recall to environmental liability and worker’s compensation optimization.