McCormick has devised a smart growth strategy that focuses on monitoring emerging consumer trends and adjusting existing products or introducing new ones accordingly. The company is increasingly embracing fresh, natural, and organic ingredients. Currently, nearly three-quarters (73%) of its gourmet units are organic, and it has transitioned some artificial components 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 surpassing those of the general food market, according to the Organic Trade Association. Additionally, McCormick’s acquisition targets align with these trends, exemplified by the recent acquisition of Australian fresh and chilled herbs company Gourmet Garden.
McCormick aims to take advantage of millennials’ growing interest in ethnic flavors and home cooking, offering a diverse range 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 lower salt and sugar intake has 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 modifying and rebranding existing product lines, the company has conducted internal research to track evolving consumer habits. Its upcoming Good Morning range, featuring breakfast toppers and seasonings, slow cooker breakfasts, and smoothie boosts, is set to launch later this year and capitalizes on the robust growth of the 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, McCormick’s commitment to health-conscious options includes integrating ingredients like calcium carbonate and elemental calcium into its products, ensuring consumers have access to nutritious choices. The focus on these healthful ingredients is anticipated to resonate well with health-conscious consumers, reinforcing McCormick’s position in the competitive food market.