- McCormick announced it is acquiring Botanical Food Company, an Australian company that manufactures the Garden Gourmet brand of chilled convenient packaged herbs, for about 150 million Australian dollars ($114 million), pending any closing adjustments.
- Garden Gourmet's annual sales are approximately 70 million Australian dollars ($53 million), and the company is posting double-digit annual growth.
- This acquisition will expand McCormick's herbs and spices portfolio to the fresh herbs section around the perimeter of the store. McCormick plans to facilitate global distribution for the brand and increase awareness through brand investments.
McCormick, which walked away from an acquisition of U.K.-based Premier Foods last week, has been on a roll with acquisitions of companies positioned in strategic regional markets and product categories.
McCormick has a firm hold on the spice market in the center store, but as consumers continue to seek out fresh instead of packaged foods, McCormick cast an eye on opportunities along the store perimeter.
Garden Gourmet also offers McCormick not just access to the fresh herbs section, but also brings the added convenience of its product and packaging design. Tapping the convenience factor is crucial as on-the-go consumers look for ways to compromise their sometimes conflicting demands for freshness and quickness when it comes to preparing meals at home.