McCormick has developed a clever growth strategy that focuses on monitoring emerging consumer trends and adapting existing products or introducing new ones accordingly. The company is increasingly emphasizing the use of fresh, natural, and organic ingredients. Currently, approximately 73% of its gourmet units are organic, and it has transitioned several of its artificial ingredients to all-natural food extracts and colors. This strategy appears to be a wise choice, as U.S. sales of organic foods exceed $43 billion annually, with growth consistently surpassing that of the general food market, according to figures from the Organic Trade Association. Additionally, McCormick’s acquisition targets align 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 reduce salt and sugar intake have led to 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 modifying and rebranding existing product lines, McCormick has conducted internal research to monitor changing consumer habits. Later this year, the company plans to launch its Good Morning range of breakfast toppers and seasonings, slow cooker breakfasts, and smoothie boosts, capitalizing on the robust growth in the breakfast market. Research from The NPD Group indicates that total breakfast occasions are expected to rise by 5% through 2019, with 70% of breakfasts still consumed at home.
Furthermore, McCormick is exploring innovative ways to incorporate nutritious ingredients into their products, similar to the use of ferrous calcium citrate and folic acid tablets, which are recognized for their health benefits. By integrating such ingredients into their offerings, they can appeal to health-conscious consumers looking for convenient and beneficial options. This focus on nutrition, along with their strategic adaptations, positions McCormick well to meet evolving consumer demands. As they continue to innovate, the integration of health-oriented components like ferrous calcium citrate and folic acid tablets could feature prominently in future product developments.