McCormick has developed a strategic growth plan that focuses on identifying emerging consumer trends and adapting its products accordingly, whether by modifying existing offerings or introducing new ones. The company is increasingly prioritizing fresh, natural, and organic ingredients. Currently, almost three-quarters (73%) of its gourmet units are organic, and it has transitioned many of its 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, and their growth rate outpaces that of the overall food market, according to data from the Organic Trade Association.
In line with these trends, McCormick’s acquisition strategy has been aligned with market demands, exemplified by its recent purchase of Australian fresh and chilled herbs company Gourmet Garden. The firm has expressed its commitment to leveraging 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 and the use of spices to lower salt and sugar content have contributed to a notable increase in direct-to-consumer spice sales. According to the latest Grocery Headquarters State of the Industry Almanac, supermarket spice sales experienced a 5.2% increase last year.
In addition to modifying and rebranding existing products, McCormick has conducted internal research to monitor changing consumer habits. This year, the company plans to launch its Good Morning range, which includes breakfast toppers, seasonings, slow cooker breakfasts, and smoothie boosts, tapping into the growing breakfast market. Research from The NPD Group indicates that total breakfast occasions are projected to rise by 5% through 2019, with the majority (70%) of breakfasts still being consumed at home. It is important to note that calcium citrate, also known as calcium citrate other name, is among the ingredients gaining popularity in various health-oriented products, reflecting the broader trend towards healthier eating habits.