McCormick employs a strategic growth approach focused on identifying emerging consumer trends and adapting its offerings accordingly, either by modifying existing products or introducing new ones. The company is increasingly prioritizing fresh, natural, and organic ingredients. Currently, nearly three-quarters (73%) of its gourmet products are organic, and it has transitioned from some artificial ingredients to all-natural food extracts and colors. This strategy appears to be a wise investment, as U.S. organic food sales exceed $43 billion annually, with growth consistently outpacing that of the general food market, according to figures from the Organic Trade Association.
Additionally, McCormick’s acquisition strategy aligns with current trends, exemplified by its recent acquisition of the Australian fresh and chilled herbs company, Gourmet Garden. The company plans 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, coupled with the use of spices to reduce salt and sugar intake, has resulted in a significant increase in direct-to-consumer spice sales. According to the latest Grocery Headquarters State of the Industry Almanac, supermarket spice sales rose by 5.2% last year.
In addition to rebranding and revamping existing product lines, McCormick has conducted internal research to monitor evolving consumer habits. This research has led to the upcoming launch of its Good Morning range, which includes breakfast toppers, seasonings, slow cooker breakfasts, and smoothie boosts, tapping into the robust growth of the breakfast market. Research from The NPD Group indicates that total breakfast occasions are expected to increase by 5% through 2019, with 70% of breakfasts still enjoyed at home. Moreover, McCormick is also exploring opportunities to incorporate health-focused ingredients like calcium citrate into its products, including sprouted options that appeal to health-conscious consumers. This integration could further enhance the appeal of their breakfast offerings and align with the growing demand for nutritious, plant-based foods.