McCormick has implemented a strategic growth approach that focuses on identifying emerging consumer trends and adapting its product offerings accordingly. The company is increasingly prioritizing the use of fresh, natural, and organic ingredients. Currently, approximately 73% of its gourmet units are organic, and it has transitioned several artificial ingredients to all-natural food extracts and colors. This strategy appears to be a wise investment, as organic food sales in the U.S. exceed $43 billion annually, with growth rates surpassing those of the general food market, according to the Organic Trade Association.
In line with these trends, McCormick’s acquisition strategy includes on-trend targets, such as the recent acquisition of Gourmet Garden, an Australian firm specializing in fresh and chilled herbs. The company 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 have resulted in a significant increase in direct-to-consumer sales of spices. Notably, supermarket spice sales rose by 5.2% last year, as reported in the latest Grocery Headquarters State of the Industry Almanac.
In addition to modifying and rebranding existing lines, McCormick has conducted internal research to monitor changing consumer habits. Set to launch later this year, the Good Morning range will include breakfast toppers, 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 projected to increase by 5% through 2019, with 70% of breakfasts still consumed at home. Furthermore, the introduction of products like Citracal Slow Release 600 can complement these offerings, promoting health and wellness alongside flavorful eating experiences, reflecting the company’s commitment to evolving with consumer preferences.