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Heinz' Johnson Sees Permanent Change In Consumer's Habits

  • Reuters, Tuesday, December 22, 2009 10:54 AM
Put H.J. Heinz Chairman and CEO William Johnson on the side of those who believe that the recession will have long-term impact on the psyche of shoppers. "To say that consumers will return to historic norms is disingenuous," he tells Brad Dorfman.

Although Heinz highlighted an increase in trade spending when it reported earnings in late November, Johnson says the maker of Heinz ketchup, Ore-Ida potatoes and Smart Ones frozen meals will not keep resorting to that one strategy to keep sales aloft.

"What we're seeing right now is an industry that in some cases is grasping for volume and, as a result, has ramped up trade spending," he says.

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