Barclays sees growing risks for EU food ingredients producers driven by GLP-1 medications

** Barclays sees 'terminal growth pressures' for the EU food ingredients deliverers, as the GLP-1 drugs pose a structural bear case that is difficult to dismiss

** Glucagon-like peptide-1 (GLP-1) medications are a type of non-insulin medication used to treat type 2 diabetes by lowering blood glucose levels and aiding in weight loss

** The brokerage says growing negative narrative around the health risks of ultra-processed foods could further pressure market expectations

** "We turn more cautious on the predominantly food-exposed ingredient names," it adds

** Barclays downgrades Barry Callebaut BARN and Suedzucker SZU to "underweight", citing increased short-term pressure for the Swiss chocolate manufacturer and remaining cautious on the European sugar cycles beyond Fy 2024 for the sugar producer

** It also cuts Dutch Corbion CRBN, Ireland's Kerry KRZI and UK's Tate TATE to "equal weight" on GLP-1 concerns