What Tootsie Roll Industries, Inc. told the SEC could break it.

Three customers — wholesaler McLane (19.7%) plus retailers Wal-Mart and Dollar Tree — made up ~36% of 2025 net product sales and 37.8% of accounts receivable.

“The Company's largest customers, McLane, Wal-Mart and Dollar Tree, accounted for approximately 36% of net product sales in 2025, and other large national chains are also material to the Company's sales.”

Products rely on agricultural ingredients sourced from a global supply chain that climate change increasingly threatens via risks to global food production systems.

“Our global supply chain faces similar challenges as our products rely on agricultural ingredients some of which are sourced from a global supply chain. Climate change poses a significant and increasing risk to global food production systems and to the safety and resilience of the communities where we source certain of our ingredients.”

Tootsie Roll ships cross-border with Canada/Mexico manufacturing operations under USMCA (expiring June 30, 2026); adverse renegotiation or new tariffs/surcharges, plus tariffs on imported ingredients like edible oils, could materially raise input costs.

“If regulators decide to impose tariffs, if the outcome of negotiations of the USMCA (which expires at June 30, 2026) is adverse to our cross-border shipments, or other surcharges are levied by Canada and Mexico, on products that previously qualified under USMCA, the impact of tariffs on our cross-border shipments could be signifi”

Tootsie Roll's costs depend heavily on sugar and other agricultural ingredients, which it hedges via commodity futures and annual supply agreements to mitigate price fluctuation.

“The Company utilizes commodity futures contracts, as well as annual supply agreements, to hedge (primarily sugar) and plan for anticipated purchases of certain ingredients in order to mitigate commodity cost fluctuation.”