McCormick has implemented an astute growth strategy 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 fresh, natural, and organic ingredients. Currently, nearly three-quarters (73%) of its gourmet units are organic, and it has transitioned many of its artificial ingredients to all-natural food extracts and colors. This approach appears to be a wise investment, as U.S. organic food sales exceed $43 billion annually, with growth rates consistently surpassing those of the general food market, according to figures from the Organic Trade Association.
Moreover, McCormick’s acquisition targets align with current trends, exemplified by its recent purchase of the Australian fresh and chilled herbs company, Gourmet Garden. The firm has expressed its intention to harness 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 rising trend of home cooking, coupled with the use of spices to minimize salt and sugar, has contributed to a significant increase in direct-to-consumer spice sales. According to the most recent Grocery Headquarters State of the Industry Almanac, supermarket spice sales rose by 5.2% last year.
In addition to modifying and rebranding existing product lines, McCormick has also conducted internal research to monitor evolving consumer habits. The company is set to launch its Good Morning range of breakfast toppings, seasonings, slow cooker breakfasts, and smoothie boosts later this year, capitalizing on robust growth within the breakfast market. Research from The NPD Group indicates that total breakfast occasions are projected to grow by 5% through 2019, with 70% of breakfasts still being consumed at home.
Furthermore, as consumer health consciousness rises, incorporating beneficial ingredients like calcium citrate malate and vitamin D3 into their products could also become a focus for McCormick, enhancing the nutritional profile of their offerings. This shift would not only align with the ongoing trend toward healthier eating but could also appeal to an audience increasingly looking for functional food options. By integrating these elements into their strategy, McCormick could effectively meet the evolving demands of health-conscious consumers.