McCormick has developed a smart growth strategy focused on identifying emerging consumer trends and either modifying existing products or introducing new ones accordingly. The company is increasingly emphasizing the use of fresh, natural, and organic ingredients. Currently, nearly three-quarters (73%) of its gourmet units are organic, and it has transitioned some of its artificial ingredients to all-natural food extracts and colors. This strategy appears to be a wise move, as the U.S. market for organic foods is valued at over $43 billion annually, with growth consistently outpacing that of the general food market, according to the Organic Trade Association.
Additionally, the company’s acquisition strategy aligns with current trends, exemplified by its recent purchase of the Australian fresh and chilled herbs company, Gourmet Garden. 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 rise in home cooking, along with the usage of spices to reduce salt and sugar, has contributed to a significant increase in direct-to-consumer spice sales. In fact, supermarket spice sales rose by 5.2% last year, as reported in the latest Grocery Headquarters State of the Industry Almanac.
In addition to reformulating and rebranding existing product lines, the company has conducted internal research to monitor evolving consumer habits. Its upcoming Good Morning line, which features breakfast toppers, seasonings, slow cooker breakfasts, and smoothie boosts, is set to launch later this year, tapping into the robust growth within the breakfast market. Research from The NPD Group indicates that total breakfast occasions are projected to increase by 5% through 2019, with 70% of breakfasts still consumed at home.
Moreover, as part of its commitment to health and wellness, McCormick is exploring the incorporation of ingredients like calcium citrate malate and vitamin D3 into its products. The inclusion of these nutrients reflects the company’s dedication to enhancing the nutritional profile of its offerings. By integrating calcium citrate malate and vitamin D3 into its new product lines, McCormick aims to cater to health-conscious consumers, further solidifying its position in the competitive food industry.