financetom
Business
financetom
/
Business
/
Mondelez CEO says Kennedy agenda product re-formulations will mean price hikes
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Mondelez CEO says Kennedy agenda product re-formulations will mean price hikes
Feb 18, 2025 3:19 PM

ORLANDO, Feb 18 (Reuters) - Mondelez ( MDLZ ) CEO Dirk

van de Put on Tuesday said the Oreo maker will face new cost

pressures from the Make America Healthy Again movement

spearheaded by U.S. health secretary Robert F. Kennedy Jr and

that Americans would see price hikes.

Make America Healthy Again could require that Mondelez ( MDLZ )

reformulate its U.S. products, which include Ritz crackers and

Chips Ahoy cookies, Van de Put said at an industry conference.

That would mean swapping out ingredients and food dyes it

currently uses.

Kennedy has said he plans to go after food additives, and

has also criticized ultra-processed foods.

When Kennedy was sworn in as Secretary of Health and Human

Services last week, President Donald Trump signed an executive

order to establish a commission to "Make America Healthy Again,"

to investigate chronic illness and deliver an action plan to

fight childhood diseases.

MAHA is comparing U.S. food manufacturing to rivals in

Europe, Van de Put said. Because Mondelez ( MDLZ ) does business in both

regions, it would be "relatively straightforward" for the

Chicago-based company to adapt its recipes, he added.

"It's work that needs to be done," said Van de Put. "It's

cost that will come."

Additional costs the company will face stemming from MAHA

will ultimately trickle down to price hikes facing consumers at

store shelves, Van de Put said.

U.S. consumers are still reeling from once-in-a-generation

levels of food inflation stemming from a supply chain crisis

during the COVID-19 pandemic. Some ingredients, like eggs, cocoa

and coffee, continue to rise in price dramatically, though for

different reasons.

It's not an easy time to raise prices, Van de Put said, "so

I do expect it will take us a few years to work our way through

this."

He also said consumers will need to get used to chocolate

that is 30% to 50% more expensive than it used to be "because

that's what we're going to see" due to a supply crisis in

Africa. Mondelez ( MDLZ ) manufactures Cadbury and Milka chocolates.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
General Motors acquires full ownership of Cruise autonomous business
General Motors acquires full ownership of Cruise autonomous business
Feb 4, 2025
DETROIT (Reuters) - General Motors ( GM ) has finalized the complete acquisition of its Cruise autonomous vehicle unit to focus on developing the technology for personal vehicles instead of on robotaxis, the company announced on Tuesday. GM in December said it would halt funding of the self-driving robotaxi operation following a year of trying to overcome challenges that arose...
Q2 Holdings, Merchant's PACT Team Up for Card Acceptance Onboarding
Q2 Holdings, Merchant's PACT Team Up for Card Acceptance Onboarding
Feb 4, 2025
12:29 PM EST, 02/04/2025 (MT Newswires) -- Q2 Holdings' ( QTWO ) digital banking platform has been integrated with Merchant's PACT to provide card acceptance onboarding, Merchant's PACT said Tuesday. The integration allows financial institutions to offer APPvantage through the Q2 digital banking platform, according to Merchant's PACT. Financial terms of the collaboration were not disclosed. ...
Update: PayPal Shares Fall as Q1 Non-GAAP Earnings Guidance Suggests Sequential Decline
Update: PayPal Shares Fall as Q1 Non-GAAP Earnings Guidance Suggests Sequential Decline
Feb 4, 2025
12:30 PM EST, 02/04/2025 (MT Newswires) -- (Updates with the latest stock movement in the headline and first paragraph.) PayPal Holdings ( PYPL ) shares dropped nearly 11% in recent Tuesday trading after the company issued Q1 non-GAAP earnings guidance that suggests a sequential decline from Q4. The company earlier reported Q4 non-GAAP earnings of $1.19 per diluted share, up...
--General Motors' Cruise Unit to Cut Half of Workforce, TechCrunch Reports
--General Motors' Cruise Unit to Cut Half of Workforce, TechCrunch Reports
Feb 4, 2025
12:32 PM EST, 02/04/2025 (MT Newswires) -- Price: 48.40, Change: +0.50, Percent Change: +1.04 ...
Copyright 2023-2026 - www.financetom.com All Rights Reserved