Oreo makers are concerned that their business will be licked by import and trade taxes
Oreo-no! Snack maker's parent company Mondelez fears increasing anti-globalization political sentiments could start crumbling its cookie business.
Add one of America's favorite snack makers to the increasingly long list of folks worried about the big league impact this new wave of anti-globalization could have on the future economy.
The company brass at Mondelez - makers of go-to snack foods including Oreo, Triscuit, Sour Patch Kids and Chips Ahoy! - addressed the issue during an earnings conference call with analysts on Tuesday night, reports CNN Money.
Mondelez CEO Irene Rosenfeld noted that "an unprecedented number of economies are facing significant disruption and uncertainty." Among her concerns are "complex developments in the political landscape, including a backlash against globalization."
Without specifically calling out President Trump's policies, Mondelez leaders did imply that if other countries started enacting similar protectionist policies, it - alongside other major US companies - could suffer in substantial ways.
"As we look at the global landscape for 2017, we do expect continued economic and geopolitical uncertainties, especially in the emerging markets, but also in places like the US," said Mondelez CFO Brian Gladden.
Mondelez's earnings report revealed that during its most recent quarter, Europe was its No. 1 market, with combined sales in Asia, Africa, Latin America and the Middle East taking second place.
Despite being headquartered in Deerfield, Illinois and having several production facilities across the country, North American sales only accounted for about a quarter of its net revenue.
Trump's intended import taxes on Mexican goods could also have an effect on Mondelez, even though Gladden said that those imports only "represent a minority" of US revenues and profits.
Still, Mondelez intends to adopt a "wait-and-see" policy for the moment.
Gladden said that the company is "not going to do anything to adjust our operations or plans until we really know what the policies are going to be, and they're much more concrete."
Having taken heat for moving production jobs from a Chicago facility to a revamped factory in Salinas, Mexico back in 2015 - during the campaign season, Trump claimed he wouldn't eat Oreos anymore as a result - Gladden said that the company currently has no plans to move any additional production to Mexico.