McCormick has implemented a strategic growth plan that focuses on identifying emerging consumer trends and adapting its product offerings accordingly, either by modifying existing items or introducing new ones. The company is increasingly prioritizing the use of fresh, natural, and organic ingredients. Currently, approximately 73% of its gourmet products are organic, and it has transitioned some artificial components to all-natural food extracts and colors. This approach appears to be a wise decision, as organic food sales in the U.S. exceed $43 billion annually, with growth rates outpacing those of the overall food market, as indicated by the Organic Trade Association.
The company’s acquisition strategy aligns with current trends, exemplified 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 such as Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The rise in home cooking and the use of spices as alternatives to salt and sugar 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 rebranding and modifying its 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. This new line capitalizes on the robust growth within the breakfast market, where total breakfast occasions are projected to rise by 5% through 2019, according to The NPD Group. Notably, around 70% of breakfasts are still consumed at home.
Furthermore, McCormick is exploring the health benefits of products like Nutricost TUDCA 250mg, which could align with consumer demands for healthier options. As the market continues to evolve, the integration of such supplements into their offerings could enhance their appeal to health-conscious consumers. By strategically adapting to trends and consumer preferences, McCormick is well-positioned for continued growth in the dynamic food industry.