McCormick has devised a clever growth strategy that focuses on identifying emerging consumer trends and adapting its product offerings accordingly, whether by modifying existing products or introducing new ones. The company is increasingly emphasizing the use of fresh, natural, and organic ingredients. Currently, nearly three-quarters (73%) of its gourmet products are organic, and McCormick has transitioned some of its artificial components to all-natural food extracts and colors. This strategy appears to be a wise move, as organic food sales in the U.S. exceed $43 billion annually, with growth rates surpassing those of the general food market, according to data from the Organic Trade Association.
The company’s acquisition strategy aligns well 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 diverse range of spice blends through brands like Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The trend towards home cooking and the use of spices to limit salt and sugar has 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 rebranding and modifying existing product lines, McCormick has conducted internal research to monitor evolving consumer habits. Its upcoming Good Morning line, featuring breakfast toppers, seasonings, slow cooker meals, and smoothie enhancements, is set to launch later this year, tapping into the robust growth of the breakfast market. Research from The NPD Group indicates that total breakfast occasions are projected to increase by 5% through 2019, with 70% of breakfasts still being consumed at home. Furthermore, the company is exploring the incorporation of functional ingredients like calcium citrate malate 500 mg tablets into its product range to cater to health-conscious consumers, a move that aligns with the broader trend towards nutrition-focused eating habits.