REFILE-Danone's Oikos yogurt brand enters protein shake market

By Jessica DiNapoli

NEW YORK, May 16 (Reuters) - Danone DANO.PA introduced a new protein shake under its Oikos yogurt brand this week as rivals Fairlife and Chobani that have similar products gain popularity with consumers and those taking weight-loss drugs such as Wegovy.

The company is looking to enter the $7 billion protein shake market, said Shane Grant, global deputy CEO of Danone, in an interview last month.

"Three-quarters of (U.S. consumers) want more protein in their diet, and GLP-1s are only accelerating this demand," Grant said, referring to the weight-loss medications. "We see the explosive growth across lots of demographics and occasions."

Danone said it spent about one year developing the shake, which is priced at $3.69.

People taking weight-loss drugs are encouraged to eat more protein to avoid losing muscle, Reuters has reported, leading to food makers such as Nestle NESN.S and Conagra CAG.N offering new products high in the nutrients or re-labeling existing ones to meet the new demand.

Makers of smoothies and shakes have also joined the trend. Coca-Cola's KO.N ultra-filtered milk brand Fairlife, which offers protein shakes, isn't specifically marketed to people on GLP-1s, but is growing substantially, Coca-Cola executives have said in recent calls with Wall Street analysts, helping buoy the entire company.

Energy-drink maker Celsius CELH.O in February acquired Alani Nu, another maker of a popular protein shake.

France-based Danone says the Oikos shake is good for digestive health because it has five grams of a certain type of fiber. The company, with the new product, is responding to a trend of U.S. consumers paying more attention to what they eat.

"We see a larger movement toward nutrition and health as part of the agenda for the American consumer," Grant said. "We see that American consumer expectation (of) health through food as growing."

Grant said he also sees U.S. Health Secretary Robert F. Kennedy Jr.'s Make American Healthy Again campaign, which is seeking to overhaul U.S. packaged food and ingredients in it, as part of that consumer movement.

Danone is turning to social media influencers to help sell the product, the company said.