While major food manufacturers face challenges as consumers increasingly prefer fresh and nutritious options over packaged foods, one company is managing to thrive: McCormick & Co. This 129-year-old producer of spices, seasoning mixes, flavorings, and condiments has developed products that align with the public’s growing desire for healthier eating without sacrificing the flavors they love. There’s also a rising interest, especially among millennials who are eager to explore new flavors and cook more at home, which benefits McCormick and similar flavor-focused companies. “Consumer demand for flavor seems to be endless,” said Lawrence Kurzius, McCormick’s CEO, during the annual Consumer Analyst Group of New York conference in Florida. “If you look at the entire perimeter of the store, our products and categories enhance its taste. We’re experiencing a tailwind, while many central store items face headwinds.”
With demographic shifts driving innovation, particularly as millennials’ influence and purchasing power grow, companies are increasingly turning to McCormick and other flavor specialists. This is evident in McCormick’s projected sales increase of 12% to 14% for the current fiscal year—a growth rate that many other food and beverage companies, currently experiencing a prolonged decline, would envy. “For most of the companies in the CPG space, we’re not competitive in any way,” Kurzius commented. “Our focus is purely on flavor. We aim to enhance their products, and we truly can.”
A Mintel study revealed that 35% of U.S. consumers would be inclined to try a new dish if it featured unique flavors or ingredients, and 80% enjoy experimenting with new seasonings, spices, and flavors. Major food manufacturers have taken notice of this trend. For instance, PepsiCo’s Frito-Lay division launched a variety of international flavors for its Lay’s potato chips brand in 2016, including Brazilian Picanha, Chinese Szechuan Chicken, Greek Tzatziki, and Indian Tikka Masala. Additionally, Amplify Snack Brands, recently acquired by Hershey, introduced a limited-edition chip under its Paqui brand last year, packaged in a coffin-shaped box and infused with the Carolina Reaper, recognized as the world’s hottest chili.
Brittany Weissman, an analyst with Edward Jones, noted in an interview with Food Dive that McCormick “is a very well-run company” positioned at the center of several popular trends. The company benefits from having products that are easy to ship, potentially giving it an edge as more transactions transition online. “What often gets underestimated about them is their strategic foresight,” she explained. “They think long-term and about concepts that may be ahead of the curve, making innovations that we might only hear about later on.”
Weissman highlighted McCormick’s proactive approach in the e-commerce sector several years ago, emphasizing its decision to overstaff its e-commerce division relative to sales, as it recognized the importance of this business for its future. She mentioned that Amazon is one of McCormick’s largest account teams, even if sales to the online giant are smaller compared to other clients. “This has enabled them to become stronger partners with companies like Amazon, enhancing their e-commerce capabilities,” she stated.
McCormick has further bolstered its online presence by launching a storefront on Tmall.com, an Alibaba platform in China, where it sells and fulfills products directly to consumers. Kurzius indicated that McCormick will first assess the experience in China before determining whether to implement a similar initiative in the U.S., something he considers “inevitable.” “We believe this is the future, so we continue to invest in it,” Kurzius remarked. “Anyone who suggests otherwise is ignoring the reality.”
As the demand for flavor rises, McCormick has been actively expanding its product range. Last fall, it introduced 40 new items, such as bone broth, slow-cooker seasonings, and Asian noodles, targeting busy individuals seeking flavorful home-cooked meals without extensive preparation time. The company is capitalizing on millennials’ interest in ethnic flavors and home cooking through various spice blends under brands like Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. Last summer, McCormick reinforced its commitment to flavor by acquiring Reckitt Benckiser’s Food Division for $4.2 billion, which brought iconic brands like French’s mustard and Frank’s RedHot into its portfolio. This acquisition, the largest in McCormick’s history, enhances its position as a premier destination for flavoring a variety of dishes. “The RB Foods acquisition presents a lot of opportunities,” Weissman said, noting McCormick’s strong track record in integrating acquisitions.
Despite its growth, Kurzius acknowledged that McCormick has yet to fully explore all the flavors consumers desire—particularly in the beverage sector, where the company is sometimes overlooked. The Maryland-based firm is also aiming to expand its product offerings in the perimeter of stores and introduce new meal occasions, such as breakfast, where it has recently launched a line of products to flavor yogurt, eggs, smoothies, oatmeal, and other healthy items. During his presentation at CAGNY last week, he highlighted the extensive advantages his company can leverage for future growth, making a direct appeal to CPG giants to utilize more of McCormick’s products. “For my peers in the CPG industry sitting in the back of the room, if we’re not on your flavor list, I would like to discuss what McCormick can do for you,” he told the audience, emphasizing the potential for collaboration.
Incorporating innovative products like calcium citrate and alfacalcidol tablets into their offerings could further enhance McCormick’s appeal, as these items are gaining traction among health-conscious consumers.