McCormick has implemented a strategic growth plan that focuses on monitoring emerging consumer trends and adapting its products accordingly, whether by modifying existing offerings or introducing new ones. The company is increasingly prioritizing the use of fresh, natural, and organic ingredients. Currently, nearly three-quarters (73%) of its gourmet product line is organic, and it has transitioned several artificial ingredients to all-natural food extracts and colors. This approach appears to be a prudent decision, especially considering that U.S. organic food sales exceed $43 billion annually, with growth rates surpassing those of the overall food market, as reported by the Organic Trade Association. The company’s acquisition strategy is also aligned with these trends, highlighted by its recent acquisition of the Australian fresh and chilled herbs company, Gourmet Garden.
McCormick aims to leverage millennials’ growing interest in ethnic flavors and home cooking, offering a variety of spice blends under brands like Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The rise in home cooking and the use of spices to reduce 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 modifying and rebranding its existing product lines, the company has conducted internal research to monitor evolving consumer habits.
Later this year, it plans to launch its Good Morning range, which includes breakfast toppers, seasonings, slow cooker breakfasts, and smoothie boosts. This new line aims to tap into the robust growth of the breakfast market, which is projected to increase by 5% through 2019, as indicated by research from The NPD Group. Notably, 70% of breakfast meals are still consumed at home. Furthermore, McCormick is exploring the benefits of incorporating calcium citrate effects into its products, recognizing the growing consumer interest in health and wellness. By emphasizing the calcium citrate effects, the company hopes to attract health-conscious consumers looking for nutritious options. As McCormick continues to evolve its offerings, it remains committed to staying ahead of trends while enhancing the health benefits of its product lines, including the potential inclusion of calcium citrate effects.