McCormick has developed a strategic growth plan that focuses on monitoring 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, nearly three-quarters (73%) of its gourmet products are organic, and it has transitioned several artificial components to all-natural food extracts and colors. This strategic move appears to be a wise decision, as U.S. organic food sales exceed $43 billion annually and continue to grow at a rate surpassing that of the overall food market, according to the Organic Trade Association.
Additionally, McCormick’s acquisition strategy aligns with current trends, exemplified by its 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 such as Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The increase in home cooking and the use of spices as alternatives to reduce 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 rose by 5.2% last year.
In addition to updating and rebranding existing product lines, McCormick has conducted internal research to monitor evolving consumer habits. This includes the upcoming launch of its Good Morning range, featuring breakfast toppings and seasonings, slow cooker breakfast options, and smoothie boosters, which taps into the expanding breakfast market. Research from The NPD Group indicates that total breakfast occasions are projected to grow by 5% through 2019, with the majority (70%) of breakfasts still being consumed at home.
Furthermore, as consumers become more health-conscious, the demand for products like calcium citrate 1500 mg with vitamin D has increased. McCormick is well-positioned to incorporate such health-focused ingredients, which align with the growing trend towards nutrition and wellness. The company’s commitment to updating its offerings to include health-oriented products, such as those featuring calcium citrate 1500 mg with vitamin D, reflects its proactive approach to meeting consumer demands. By continuously evolving its product lines and embracing current trends, McCormick reinforces its status as a leader in the food industry.