LIZ: SILVER AT $14.65.
COMMODITIES, EVERYTHING IS DOWN.
COMMODITIES, STOCKS, YOU NAME
IT.
FROZEN COLORFUL BEADS OF ICE
CREAM WITH FLAVORS LIKE MOOSE
TRACKS AND CUDDLE BUG, DIPPIN'
DOTS CAN BE FOUND IN MALLS,
GROCERY STORES, GAS STATIONS AND
ENTERTAINMENT VENUES ACROSS THE
UNITED STATES.
AFTER A THREE-YEAR PROCESS, THE
AMERICAN ICE CREAM CHAIN
LITERALLY JUST LAUNCHED IN CHINA
LAST MONTH, WITH A PLAN FOR 11
OUTLETS IN SHANGHAI TO OPEN BY
THE END OF THE MONTH.
BEFORE THE TRADE WAR, DIPPIN'
DOTS MODEL SHOWED THEIR CHINA
REVENUES WILL EVENTUALLY SURPASS
THEIR U.S. SALES, BUT HAS THAT
ALL CHANGED NOW DUE TO THE
U.S./CHINA TARIFF WAR?
THE CEO, SCOTT FISHER, JOINS US
NOW IN A FOX BUSINESS EXCLUSIVE.
SO GLAD YOU'RE HERE.
YOU MANUFACTURE IN PADUCAH,
KENTUCKY AND EXPORT TO CHINA TO
STOCK YOUR STORES THERE.
WHAT IS THE CURRENT TARIFF HIT
YOU'RE TAKING RIGHT NOW?
>> OUR TARIFFS ARE 44% FROM 19%,
A 25% INCREASE, WHICH IS VERY,
VERY HEFTY.
THAT'S LIKE ME GOING TO A STEAK
RESTAURANT, BEING FORCED TO PAY
A 44% TAX.
I WOULD PROBABLY END UP GOING TO
TACO BELL.
WE LIKE THE MARKET IN CHINA, WE
ARE OPTIMISTIC ABOUT IT, SO WE
WILL TRY TO STICK WITH IT.
LIZ: WELL, THAT'S A HORRIBLE
TARIFF HIT, BUT WE'VE GOT A SIGN
OF SORT OF A CRACK IN THE CLOUDS
TODAY, WHERE CHINA SAID YOU
KNOW, WE ARE GOING TO CUT 25% OF
THOSE 25% TARIFFS ON CERTAIN
AUTOS AND AUTO PARTS AND ANOTHER
25% ON DIFFERENT AUTO PARTS AND
AUTO PIECES THERE.
NONE OF THAT REALLY HELPS YOU,
DOES IT?
>> IT DOESN'T.
WE'RE DAIRY SO WE FALL INTO
AGRICULTURE, WHICH STILL HAS THE
25% INCREASE.
IT'S STILL GOING TO BE A HEAVY
HIT.
LIZ: HAVE YOU CONSIDERED
MANUFACTURING IN CHINA?
YOU'VE GOT TESLA STARTING UP
MANUFACTURING, AT LEAST TRYING
TO, BUILDING A PLANT ON THE
GROUND IN CHINA IN ORDER TO
BYPASS THE TARIFFS.
AGAIN BY THE TIME THEY OPEN, THE
TARIFF WAR COULD BE OVER.
WHAT'S YOUR BUSINESS, IF YOU
MODEL, YOUR REVENUES WERE GOING
TO BE AMAZING FOR CHINA, NOW
WHAT ARE YOU MODELING FOR?
>> OUR ANNUAL GROSS RETAIL SALES
HERE DOMESTICALLY AROUND $300
MILLION.
WE ARE PROJECTED TO SURPASS THAT
POTENTIALLY IN THE MARKET OF
CHINA IF THINGS CONTINUE
OPTIMISTICALLY.
WE HAVE ALTERNATIVE SOLUTIONS.
UNFORTUNATELY, PRODUCING IN
CHINA IS NOT AN OPTION BECAUSE
THEY DON'T HAVE ANY U.S. DAIRY
PRODUCERS.
WE WOULD BE FORCED TO USE
POWDERED MILK SO IT WOULDN'T BE
THE QUALITY WE'RE USED TO.
WE HAVE ALTERNATIVE SOLUTIONS OF
OTHER COUNTRIES THAT DO NOT HAVE
TARIFFS IN CHINA SO WE COULD
POTENTIALLY PRODUCE AND OPEN UP
MANUFACTURING THERE AND THEN
ONCE THE TRADE WARS DO CONCLUDE,
MOVE OUR PRODUCTION BACK TO THE
U.S.
LIZ: I SEE.
OKAY.
YOU ARE ALREADY LOOKING AT THAT.
OBVIOUSLY YOU ARE SMART TO BE
NIMBLE ON THIS ISSUE.
I'M INTERESTED TO KNOW, THIS WAS
A THREE-YEAR EFFORT TO GET UP
AND RUNNING IN CHINA.
DID YOU HAVE TO HAVE A JOINT
VENTURE?
DID YOU HAVE TO HAVE A PARTNER?
YOU GUYS HAVE PATENTS FOR
DIPPIN' DOTS.
DID YOU HAVE TO GIVE YOUR PATENT
OVER TO ANYBODY?
>> WE DIDN'T HAVE TO HAVE ANY
PARTNERS.
WE WENT THROUGH A THREE-YEAR
PROCESS TO PROPERLY DO
EVERYTHING, OPEN UP CORPORATE
OPERATIONS IN CHINA.
INTELLECTUAL PROPERTY WAS A BIG
PIECE OF THAT AND THAT WAS A BIG
PIECE WE WENT THROUGH TO
PROPERLY REGISTER ALL OF OUR
INTELLECTUAL PROPERTY.
BUT I THINK I.P.PIRACY IS A RISK
OF INTERNATIONAL BUSINESS.
I FEEL PRETTY SAFE.
CHINA IS VERY SOPHISTICATED WHEN
IT COMES TO CYBERSCIENCE AND
TECHNOLOGICAL ADVANCEMENT BUT TO
CRYOGENICALLY FREEZE ICE CREAM
IS A SOPHISTICATED PROCESS.
LIZ: YOUR FOUNDER DID IT IN A
GARAGE A COUPLE DECADES AGO AND
IT'S AN ALL AMERICAN BRAND,
SOMETHING DEFINITELY TO BE
PROTECTED.
THEY HAVE BEEN KNOWN TO STEAL
THINGS AND IT'S UNBELIEVABLE HOW
THEY DO IT.
IF YOU COULD HAVE A FACE-TO-FACE
RIGHT NOW WITH PRESIDENT TRUMP
AND EXPLAIN TO HIM YOUR
EXPERIENCE AND HOW TARIFFS ARE
AFFECTING YOU, PRETEND HE'S
WATCHING RIGHT NOW.
HE MAY VERY WELL BE.
WHAT WOULD YOU SAY TO HIM?
>> I FULLY SUPPORT OUR PRESIDENT
110%.
I THINK WE NEED TO DO WHAT'S
RIGHT FOR AMERICA.
BUT THE 44% IS VERY EXPENSIVE
AND IT DOES HURT BUSINESS AND
FORCES US TO LOOK AT OTHER
ALTERNATIVES.
INTERNATIONAL BUSINESS IS A BIG
PIECE OF OUR BUSINESS.
WE HAVE INCREASED OUR PRODUCTION
FOR 31% AND OUR PRODUCT VOLUME
OUTPUT BY 41% LARGELY DUE TO
INTERNATIONAL BUSINESS.
SO IT IS A BIG PIECE OF OUR
BUSINESS MODEL.
LIZ: WELL, GOOD LUCK.
>> THANK YOU.
LIZ: I THINK AT SOME POINT,
SOMETHING'S GOT TO GIVE.
THAT'S WHAT I'M HEARING YOU SAY,
YOU SUPPORT PRESIDENT TRUMP BUT
AT SOME POINT IT'S GOING TO
REALLY HURT YOUR BUSINESS.
>> YES, MA'AM.
BUSINESS IS BUSINESS.
LIZ: I GET IT.
I LOVE ME SOME CUDDLE BUG.
I LOVE THAT FLAVOR.
THANK YOU.
>> THANK YOU.