McCormick has developed a strategic growth approach focused on identifying emerging consumer trends and adapting its product offerings accordingly, whether by modifying existing items or introducing new ones. The company is increasingly prioritizing the use of fresh, natural, and organic ingredients. Currently, nearly 73% of its gourmet product units are organic, and it has transitioned many of its artificial ingredients to all-natural food extracts and colors. This strategy appears to be a wise decision, given that U.S. organic food sales exceed $43 billion annually and continue to grow at a rate surpassing that of the general food market, according to data from the Organic Trade Association.
The company’s acquisition strategy is also aligned with current trends, evidenced by the recent acquisition of Australian company Gourmet Garden, which specializes in fresh and chilled herbs. McCormick aims to leverage millennials’ growing interest in ethnic flavors and home cooking, offering a variety of spice blends under brands such as Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The resurgence of home cooking, coupled with an increased use of spices to lower salt and sugar intake, has resulted in a notable rise in direct-to-consumer spice sales. According to the latest Grocery Headquarters State of the Industry Almanac, supermarket spice sales saw a 5.2% increase last year.
In addition to rebranding and modifying existing product lines, McCormick has conducted internal research to monitor changing consumer habits. This has led to the upcoming launch of its Good Morning range, which includes breakfast toppers, seasonings, slow cooker meals, and smoothie boosts, tapping into the robust growth of the breakfast market. Research from The NPD Group indicates that total breakfast occasions are projected to increase by 5% through 2019, with 70% of breakfasts still being consumed at home.
Furthermore, as part of its commitment to health-conscious consumers, the company has introduced products like bariatric calcium pills, which cater to those seeking nutritional supplements. This aligns with the broader trend of consumers prioritizing health and wellness, further enhancing McCormick’s portfolio and market relevance.