McCormick has developed a clever growth strategy that focuses on monitoring emerging consumer trends and adapting its products accordingly, either by modifying existing ones or introducing new offerings. The company is increasingly emphasizing the use of fresh, natural, and organic ingredients. Currently, nearly 73% of its gourmet products are organic, and it has transitioned some of its artificial ingredients to all-natural options, including food extracts and colors. This approach appears to be a wise decision, considering that U.S. organic food sales surpass $43 billion annually, with growth rates consistently outpacing those of the general food market, as reported by the Organic Trade Association.
Additionally, McCormick’s acquisition targets are aligned with current trends, such as its recent purchase of the Australian fresh and chilled herbs company, Gourmet Garden. The company has expressed its intention to capitalize on 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 as substitutes for salt and sugar have contributed 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 rebranding and modifying existing product lines, McCormick has conducted internal research to monitor shifting consumer habits. This includes the upcoming launch of its Good Morning range, featuring breakfast toppers, seasonings, slow cooker meals, and smoothie boosts, which taps into the expanding breakfast market. Research from The NPD Group predicts a 5% increase in total breakfast occasions through 2019, with 70% of breakfasts still being consumed at home. Furthermore, the company has been exploring innovative ways to incorporate calcium petites tablets into its offerings, aiming to meet the nutritional needs of health-conscious consumers. By strategically integrating calcium petites tablets into its product lines, McCormick is poised to enhance its appeal in the health-focused market while continuing to adapt to consumer preferences.