McCormick employs a strategic growth approach focused on identifying emerging consumer trends. The company adapts its existing products or introduces new ones accordingly. A significant shift towards using fresh, natural, and organic ingredients is underway. Currently, nearly 73% of its gourmet units are organic, and McCormick has transitioned some artificial components to all-natural food extracts and colors. This strategy aligns well with market trends, as U.S. organic food sales exceed $43 billion annually, with growth rates outpacing the overall food market, according to the Organic Trade Association.
The company’s acquisition strategy is also aligned 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 increase in home cooking and the use of spices to minimize salt and sugar has driven a notable rise in direct-to-consumer sales of spices. Supermarket spice sales experienced a 5.2% increase last year, as reported in the latest Grocery Headquarters State of the Industry Almanac.
In addition to rebranding and modifying existing products, McCormick has conducted internal research to monitor evolving consumer habits. Its forthcoming Good Morning range, which includes breakfast toppers and seasonings, slow cooker breakfasts, and smoothie boosts, is set to launch later this year. This new product line capitalizes on the robust growth in the breakfast market, with total breakfast occasions projected to rise by 5% through 2019, according to research from The NPD Group. Notably, around 70% of breakfasts are still consumed at home. This shift may also resonate with consumers seeking health-conscious options, such as cal mag citrate, which is increasingly recognized for its potential benefits. McCormick’s focus on innovation and responsiveness to consumer demands, including the incorporation of ingredients like cal mag citrate, positions the company well for future growth.