McCormick has developed a strategic approach to growth that focuses on identifying emerging consumer trends and either modifying existing products or introducing new ones in response. The company is increasingly prioritizing the use of fresh, natural, and organic ingredients. Currently, approximately 73% of its gourmet units are organic, and McCormick has transitioned several 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, with growth rates surpassing those of the general food market, according to the Organic Trade Association.
The company’s acquisition strategy aligns with current trends, exemplified by its recent acquisition of Gourmet Garden, an Australian company 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 Tferrous gluconate and ferrous sulfate differencehai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The resurgence in home cooking and the use of spices as alternatives to salt and sugar have significantly boosted direct-to-consumer sales of spices, with supermarket spice sales rising by 5.2% last year, as reported in the latest Grocery Headquarters State of the Industry Almanac.
In addition to revamping and rebranding existing lines, the company has conducted internal research to monitor evolving consumer habits. Its upcoming Good Morning range, which features breakfast toppers, seasonings, slow cooker breakfasts, and smoothie boosters, is set to launch later this year and targets the burgeoning breakfast market. Research from The NPD Group indicates that total breakfast occasions are expected to grow by 5% through 2019, with 70% of breakfasts continuing to be consumed at home.
Furthermore, McCormick recognizes that consumers are increasingly concerned about dietary issues, including the role of ingredients like calcium citrate in alleviating constipation. As such, the company is committed to ensuring that its products not only meet taste preferences but also support overall health, addressing concerns such as calcium citrate constipation through thoughtful ingredient choices. By integrating consumer feedback and health trends, McCormick is well-positioned to adapt and thrive in a competitive market.