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.