McCormick & Company, Incorporated is a manufacturer, marketer, and distributor of spices, seasoning mixes, condiments, and other flavorful products to the food industry. The Company is an international leader in flavor as part of the Processed & Packaged Goods industry in the Consumer Goods sector. Its consumer brands are in greater than 140 countries and territories. McCormick & Company has its corporate headquarters in Sparks, Maryland.
In 1889, Company Founder, Mr. Willoughby M. McCormick, and three young workers began the company in a basement. They subsequently sold their flavors and extracts door-to-door. In 1947, its acquisition of Schilling of San Francisco (the largest spice business west of the Mississippi) turns McCormick into a United States industry leader. In 1959, McCormick acquires Gorman Eckert (Canada’s largest spice firm). It later becomes Club House Foods.
In 1990, McCormick acquired Old Bay from Hansen Industries. In 2008, the Company bought the Billy Bee Honey brand of Canada for $75 million. Moreover, it completed a deal to purchase Lawry’s® from Unilever (for $605 million), which was its largest acquisition to date.
In 2015, McCormick acquired 100% of Brand Aromatics. This company is a supplier of natural savory flavors, marinades, and broth and stock concentrates to the packaged food industry. This year, the Company acquired the Botanical Food Company. Botanical Food is a worldwide leader in chilled convenient herbs, under the Gourmet Garden brand name.
McCormick operates via two segments – Consumer and Industrial. The Consumer segment offers spices, herbs, seasonings, and dessert items. The Industrial segment offers seasoning blends, spices and herbs, condiments, coating systems, and compound and other flavors to foodservice customers and transnational food manufacturers.
The Company’s brands include Club House, Club House for Chefs, Aeroplane Jelly, Billy Bee, Ducros, Drogheria & Alimentari, El Guapo, Gourmet Garden, Kamis, Kitchen Basics, Lawry’s, McCormick, McCormick for Chefs, Old Bay, and Margao. Additionally, its brands include Schwartz, Silvo, Simply Asia, Stubb’s Legendary Bar-B-Q, Thai Kitchen, Vahine, World of Flavors, WAPC, and Zatarain’s.
The McCormick Brand has a 48.3% market share of Millennial Herb & Spice purchases. Millennials have a deep interest in ethnic cuisine. They also have a deep interest in restaurant-quality meals in the home. Millennials are one-third of http://www.mccormick.com traffic.
McCormick’s strategy for long-term sales growth is focusing one-third on its base business; focusing one-third on its new products; as well as focusing one-third on acquisitions. The Company’s long-term sales growth goal is 4% to 6%.
McCormick has gained a 120 basis points share of the spice and seasoning category with its United States retail price partners. U.S. retail sales are nearing robust 6% category growth. Year-to-Date, as of the Company’s September 2016 Barclays Presentation, McCormick e-commerce channel sales were up 26% in the U.S., 22% in France, and 12% in the United Kingdom (UK).
Furthermore, in China, e-commerce is propelling approximately 20% of McCormick consumer sales growth. Regarding its base business, McCormick, worldwide, sells to 9 of the top 10 food and beverage companies and each of the top 10 foodservice and restaurant chains.
McCormick’s “10-year Total Annual Shareholder Return” is 15%. This is in comparison to 12% for the S&P 500 Food Group and 7% for the S&P 500.