McCormick just announced its first earnings report since completing the acquisition of Reckitt Benckiser’s food division. The transaction added iconic brands like French’s mustard, Cattlemen’s, and Frank’s RedHot to their extensive portfolio of spices and condiments.
The company is repositioning itself to be more than just spices. This fall, they plan to add new trending products like bone broth, slow-cooker seasonings, and Asian noodles. All of their new products are targeting busy people who are looking for flavorful, healthy convenience.
Quality Ingredients Talk to Health-Conscious Consumers
McCormick posted $1.19 billion in revenue during its third quarter, which is up by 9% from this time last year. The company credits the increase to pricing, volume, product mix, and the recent acquisition of Reckitt Benckiser. However, net profits were down from $127.7 million to $108.2 million this year.
The CEO, Lawrence Kurzius, is motivated by the growth. In a statement, he said, “We are continuing to capitalize on the global and growing consumer interest in healthy, flavorful eating, the source and quality of ingredients, and sustainable and socially responsible practices. We are aligned with the increased demand for great taste and healthy eating and are confident in our plans to drive growth.”
McCormick Plans to Capitalize on Millennials
The company plans to take advantage of millennials’ interest in ethnic flavors and home cooking. Home cooking and using spices to reduce the consumption of sugar and salt have led to an increase in sales of spices.
Innovative products and active repositioning seem to be steering McCormick in the right direction. It will be interesting to see how their leadership team continues to capitalize on consumer’s interest in healthy eating without losing the taste and flavor they crave.
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