The coronavirus pandemic continues to evolve but for the time being, all of Mondelez International Inc's (NASDAQ: MDLZ) plants are operational, CEO Dirk van de Put said Wednesday's on CNBC's "Closing Bell."
Every day brings some form of a new challenge to Mondelez's operations but "so far so good" and the company continues to satisfy the demand for global food products, he said. Despite some bumps in the road, the operation has been "very good for us" and there is no reason to believe the company's supply chain can't satisfy rising demand.
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Some of Mondelez's items in high demand are snacks and treats, including Oreos, the CEO said. During moments of anxiety, stress, and uncertainty, it's "normal" for people to indulge in comfort foods. Consumers staying home and snacking more often is certainly adding a lift to Mondelez's business and it is more than offsetting sales lost from dining-out categories.
Mondelez's exposure to commodity costs is mitigated through hedging and the company is "more than covered" for 2020 and even into part of 2021, he also said. The same can be said for currencies but over-time the fluctuations will "play a role" in the input costs and prices "will have to go up."
"We will have to live with some price increases in developing markets in the future," he said. "But then on the commodity side, we feel pretty good."
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