Mondelez Faces New Costs Amid 'Make America Healthy Again' Initiative

Mondelez CEO Dirk van de Put announced that the 'Make America Healthy Again' initiative led by U.S. health secretary Robert F. Kennedy Jr will introduce cost pressures, resulting in price hikes. The initiative demands possible reformulation of Mondelez's U.S. products to meet health standards, raising operational costs.

Mondelez CEO Dirk van de Put has indicated that the company will encounter new financial challenges due to the 'Make America Healthy Again' initiative, overseen by U.S. health secretary Robert F. Kennedy Jr.

This initiative aims to reformulate U.S. food products such as Ritz crackers and Chips Ahoy cookies, potentially increasing Mondelez's operational costs as it adapts to these new guidelines.

Van de Put stated that these additional costs are expected to lead to higher consumer prices. These changes come during a period of significant food inflation, exacerbated by pandemic-related supply chain issues.

(With inputs from agencies.)