Dive Brief:
- McCormick said its profit ticked up 0.8% in its latest quarter, though the company made it clear its earnings and revenue this year would be hit by currency fluctuations.
- The spice maker anticipates earnings per share to be $3.65 to $3.72 on a 2% sales increase, versus analyst expectations of $3.73 EPS with 3% sales growth hitting $4.44 billion.
- According to McCormick, it holds 20% of the global packaged spice and herb market.
Dive Insight:
McCormick is witnessing strong spices, herbs, and seasonings demand. It's pushed market relevance through marketing spending and acquisitions, the cornerstone of its earnings.
The company also saved $98 million in costs which it attributed to its Comprehensive Continuous Improvement program in 2015 and anticipates at least $95 million this year.
It's also been innovating with new products, including a new non-GMO vanilla extract. About 80% of its U.S. Gourmet herbs and spices business will be organic and non-GMO; 70% of all McCormick branded herbs, spices, and extracts in the U.S. will have non-GMO labels in 2016, the company said last September.
McCormick highlighted the on-trend approach, knowing consumers' appetite for exciting flavors, health push, and convenience in a news release. The company named president and COO Lawrence Kurzius as the company's next CEO toward the end of last year as the company strives to keep up with trends.
