McCormick has developed a shrewd growth strategy that focuses on identifying emerging consumer trends and either modifying existing products or introducing new ones in response. The company is increasingly shifting towards the use of fresh, natural, and organic ingredients. Currently, nearly three-quarters (73%) of its gourmet offerings are organic, and McCormick has transitioned many of its artificial components 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 consistently outpacing that of the overall food market, according to figures from the Organic Trade Association.
The company’s acquisition strategy aligns well with current trends, highlighted by its recent acquisition 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 popular brands like Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The rise in home cooking and the use of spices to reduce salt and sugar has significantly boosted direct-to-consumer sales of spices. According to the latest Grocery Headquarters State of the Industry Almanac, supermarket spice sales increased by 5.2% last year.
In addition to modifying and rebranding its existing product lines, McCormick has conducted internal research to monitor changing consumer habits. The launch of its Good Morning range, featuring breakfast toppers and seasonings, slow cooker breakfasts, and smoothie boosts, is set for later this year, capitalizing 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 strategy could be complemented by innovative products like Twinlab calcium citrate caps, which align with the increasing consumer focus on health and wellness. As the company continues to adapt to market demands, the integration of such health-oriented products may enhance its appeal to health-conscious consumers, ultimately driving growth in this competitive landscape.