McCormick has developed a strategic approach to growth that focuses on identifying emerging consumer trends and responding by either modifying existing products or introducing new ones. The company is increasingly incorporating fresh, natural, and organic ingredients into its offerings. Currently, nearly 73% of its gourmet products are organic, and it has transitioned some artificial ingredients to all-natural food extracts and colors. This strategy appears to be a wise investment, as U.S. organic food sales exceed $43 billion annually and are growing faster than the overall food market, according to figures from the Organic Trade Association. Furthermore, McCormick’s acquisition strategy aligns with these trends, exemplified by its recent purchase of the Australian fresh and chilled herbs company, Gourmet Garden.
The company aims to leverage millennials’ growing interest in ethnic flavors and home cooking, featuring a variety of spice blends under brands such as Thai Kitchen, Zatarain’s, Simply Asia, and Lawry’s. The trend toward home cooking and the use of spices as alternatives to salt and sugar have significantly boosted direct-to-consumer spice sales. Notably, supermarket spice sales rose by 5.2% last year, based on the latest data from the Grocery Headquarters State of the Industry Almanac.
In addition to revamping existing product lines, McCormick has engaged in internal research to monitor changing dietary habits. This research has led to the upcoming launch of its Good Morning range, which includes breakfast toppers, seasonings, slow cooker breakfasts, and smoothie boosts, tapping into the expanding 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.
To further enhance its product offerings, McCormick is exploring the integration of health-focused ingredients, such as Kirkland calcium citrate, into its new lines. This focus on health and wellness is likely to resonate with consumers looking for nutritious options. Overall, McCormick’s strategic initiatives reflect a keen awareness of market dynamics and consumer preferences, positioning the company for continued success.