‘Consumer resistance affects Watties’

Press, 26 November 1977, Page 21

‘Consumer resistance affects Watties’

An assertion by Wattie Industries that its profit y as curtailed by the pricefreeze m the second quarter was ludicrous, said the organiser of the Housewives Boycott movement (Mrs k. Himiona). “It is using that excuse to avoid saying that it is the boycott and natural consumer resistance that has had an effect,” she said. A more logical explanation for losses of this nature is that the New Zealand consumer is fed up with the monopolistic . prices foisted on them by ; some manufacturers,” Mrs I Himiona said. Consumers were now no ! longer able or willing to \ pay prices being asked for some goods. As a result,! supermarkets were regu- I larly selling Watties* tin- [ ned foods as “specials,” i and the company was los- | ing money. Mrs Himiona said that |i she sympathised with the | people who were buying I goods like canned foods • and coffee at special J prices, even though they | were breaking the boycott, j

“According to the financial pages, Watties is slowing down. One reason given is that the domestic market for many traditional canned lines no longer shows the previous growth factors. “In other words, the consumer is giving this company a kick in the teeth by refusing to buy its products at the set rate,” Mrs Himiona said. In the company’s annual report, the chairman (Mr D. F. McLeod) said: “The economic difficulties are

tending to be exacerbated by a disturbing degree of dissidence on many social issues, which cannot help but divert attention from some basic economic issues and detract from the ultimate well-being of our country.” Mrs Himiona said Mr McLeod was obviously referring to the boycott movement. “All the boycott movement wishes to do is help the consumer, and the consumer is now appreciating this,” she said.