McCormick has developed a strategic growth plan that focuses on identifying emerging consumer trends and adapting its product offerings accordingly, whether by modifying existing items or introducing new ones. The company is increasingly prioritizing the use of fresh, natural, and organic ingredients. Currently, nearly 73% of its gourmet product line is organic, and it has transitioned many of its artificial ingredients to all-natural food extracts and colors. This strategy appears to be a wise move, as U.S. organic food sales exceed $43 billion annually and are growing faster than the overall food market, according to the Organic Trade Association.
McCormick’s acquisition strategy is also aligned with current trends, highlighted by its recent purchase of the Australian company Gourmet Garden, which specializes in fresh and chilled herbs. 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 surge 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 reformulating and rebranding existing products, McCormick has conducted internal research to monitor shifting consumer habits. This year, it plans to launch its Good Morning range, which includes breakfast toppers, seasonings, slow cooker breakfasts, and smoothie boosts, tapping into the rising 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 prepared at home. Furthermore, the incorporation of ingredients like calcium citrate 400 into its formulations is part of McCormick’s strategy to enhance nutritional value and appeal to health-conscious consumers. The emphasis on calcium citrate 400 reflects the company’s commitment to providing innovative and healthier options in the marketplace.