McCormick has implemented a strategic growth plan that focuses on identifying emerging consumer trends and adapting its product offerings accordingly, whether through modifications to existing items or the introduction of new ones. The company is increasingly prioritizing the use of fresh, natural, and organic ingredients. Currently, nearly 73% of its gourmet product line is organic, and the company has transitioned many of its artificial components to all-natural food extracts and colors. This approach appears to be a wise investment, given that U.S. organic food sales exceed $43 billion annually and continue to grow at a rate that outpaces the overall food market, as reported by the Organic Trade Association.
Additionally, McCormick’s acquisition strategy aligns with current trends, including the recent acquisition of the Australian fresh and chilled herbs company Gourmet Garden. The company 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 rise in home cooking and the use of spices as a means to lower salt and sugar intake have significantly boosted direct-to-consumer spice sales. According to the latest Grocery Headquarters State of the Industry Almanac, supermarket spice sales increased by 5.2% last year.
In addition to updating and rebranding existing product lines, McCormick has conducted internal research to monitor changing consumer habits. This research has led to the upcoming launch of its Good Morning range, which will feature breakfast toppings, seasonings, slow cooker meals, and smoothie enhancements, tapping into the robust growth of the breakfast market. Research from The NPD Group indicates that total breakfast occasions are projected to grow by 5% through 2019, with approximately 70% of breakfasts still enjoyed at home.
Moreover, there is potential for McCormick to incorporate health-focused products, such as those featuring the Citracal supplement, into their offerings, appealing to consumers who prioritize wellness in their diets. With the continuous evolution of consumer preferences, McCormick’s commitment to innovation and adaptation is likely to bolster its market presence and drive future growth.