McCormick has devised a smart growth strategy focused on monitoring emerging consumer trends and either modifying existing products or introducing new ones accordingly. The company is shifting towards an increased utilization of fresh, natural, and organic ingredients. Currently, nearly three-quarters (73%) of its gourmet products are organic, and it has transitioned some of its artificial ingredients to all-natural food extracts and colors. This approach appears to be a wise investment, as U.S. organic food sales exceed $43 billion annually, with growth rates outpacing those of the general food market, according to data from the Organic Trade Association.
The company’s acquisition strategy aligns with current trends, exemplified by its recent purchase of Gourmet Garden, an Australian firm specializing in fresh and chilled herbs. 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 surge in home cooking and the use of spices to minimize salt and sugar intake has resulted in a significant uptick 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 products, McCormick has conducted internal research to keep pace with evolving consumer habits. The upcoming launch of its Good Morning range, featuring breakfast toppers, seasonings, slow cooker breakfasts, and smoothie enhancements, capitalizes on the booming breakfast market. Research from The NPD Group indicates that total breakfast occasions are projected to grow by 5% through 2019, with 70% of breakfasts still consumed at home.
Furthermore, the company’s commitment to innovation is reflected in its focus on products like Citracal Pearls, which are designed to meet the needs of health-conscious consumers. The incorporation of Citracal Pearls into their offerings demonstrates McCormick’s dedication to aligning with contemporary dietary trends. Overall, McCormick’s strategic initiatives highlight its adaptability and forward-thinking approach in a rapidly changing market.