McCormick has developed a strategic approach to growth 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, about 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 prudent choice, as U.S. organic food sales exceed $43 billion annually, with growth rates consistently surpassing those of the overall food market, as reported by the Organic Trade Association.
In line with this trend, McCormick’s recent acquisition of the Australian fresh and chilled herbs company, Gourmet Garden, reflects its commitment to staying relevant. 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 rise in home cooking and the use of spices to minimize salt and sugar intake has significantly boosted direct-to-consumer spice sales. According to the latest Grocery Headquarters State of the Industry Almanac, supermarket spice sales saw a 5.2% increase last year.
Beyond modifying and rebranding existing products, McCormick has conducted internal research to understand evolving consumer habits. The company plans to launch its Good Morning line of breakfast toppings and seasonings, slow cooker breakfasts, and smoothie boosters later this year, tapping into the robust breakfast market. Research from The NPD Group indicates that breakfast occasions are expected to grow by 5% through 2019, with 70% of breakfasts still being consumed at home.
As McCormick continues to evolve, it may also consider incorporating innovative products like solaray calcium citrate 1000 mg into its offerings, enhancing its commitment to health-conscious consumers. By integrating such elements, McCormick can further align with current dietary trends and consumer preferences. Overall, the company remains focused on adapting to market demands and ensuring its products meet the needs of today’s consumers.