As consumers shift back to buying brand-name products, Kendall Powell, the CEO of food company General Mills, told CNBC Thursday that the company doesn’t want to pass the higher costs of commodities on to their customers.
“General Mills has been using hedging, options and derivatives for 50 to 60 years, to help us keep prices stable,” added Powell, speaking from the World Economic Forum in Davos, Switzerland.
Powell added that during the financial crisis, some consumers had abandoned brand name products in favor of house brands, to save money.
Now, he added, consumers are returning to General Mills.
He said the higher prices of commodities is due to the increasing demand for food in the growing world.
The CEO declined to discuss any possible association with fellow food company, Nestle .