McCormick has developed an astute growth strategy that focuses on identifying emerging consumer trends and adapting existing products or introducing new ones accordingly. The company is increasingly incorporating fresh, natural, and organic ingredients into its offerings. Currently, nearly 73% of its gourmet units are organic, and it has replaced some artificial components with all-natural food extracts and colors. This strategy appears to be a wise move, especially considering that U.S. sales of organic foods exceed $43 billion annually, with growth rates surpassing those of the general food market, as reported by the Organic Trade Association.
Additionally, McCormick’s acquisition targets align with current trends, highlighted by its recent purchase of Gourmet Garden, an Australian company specializing in fresh and chilled herbs. The firm is aiming 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 rising trend of home cooking and the use of spices to minimize salt and sugar intake have significantly boosted direct-to-consumer spice sales. 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 existing lines, McCormick has also conducted internal research to monitor evolving consumer habits. This research has led to the upcoming launch of its Good Morning range, which features breakfast toppers, seasonings, slow cooker breakfasts, and smoothie boosts, tapping into the robust growth of the breakfast market. Research by The NPD Group indicates that total breakfast occasions are projected to grow by 5% through 2019, with 70% of these meals still being enjoyed at home. Notably, the company is also exploring the integration of products like CVS Citracal into its offerings, recognizing the rising consumer interest in health-oriented options. This focus on health and wellness reflects a broader trend that McCormick intends to capitalize on as it continues to innovate and grow in the competitive food industry landscape.