The leading global supplier of spices, herbs and seasonings to consumer and food manufacturing markets McCormick & Co is looking at more product development in the health and wellness markets such as in organic, natural, and free-from.
The US-based company’s chairman and CEO Alan Wilson recently spoke at the Sanford C. Bernstein Strategic Decisions Conference in New York where he said that the company needs to respond consumer demand for natural products and plans more certified organic product lines.
“I think we are seeing a rapid migration with consumers and consumer attitudes into things like more organic, natural, free-from, whether it is G.M.O.s or gluten or sugars or fats or whatever it is, there is a real move there,” Mr Wilson said.
McCormick & Co supplies a large range of branded spices, flavor extracts and recipe mixes and sells these products as flavour solutions to 9 of the top 10 food and beverage companies and foodservice and restaurant chains in the world.
“In recent years, one-third of our new product projects have had some type of health and wellness initiative,” Mr. Wilson said. “With our foundation in spices and herbs, we are a go-to company for these kinds of projects.”
Organic is another opportunity for McCormick, which offers a number of USDA Certified organic options in its branded spices line.
Despite organics only making up about 2% of sales in branded spices, the company sees this growing and said that it’s been the leader in this market by being early to market and will increase the availability of organic products.
McCormick has also introduced productivity improvements in its supply chain to offset the cost of procuring organic herbs and spices.
McCormick & Company recently announced that it had completed the purchase of 100% of the shares of Drogheria & Alimentari (D&A), a privately held company based in Italy, for a purchase price of €72 million ($79 million U.S. dollars) subject to certain closing adjustments.
D&A is a leader in spices and seasonings in Italy. Annual sales are approximately €50 million ($55 million U.S. dollars), with 80% in Italy and 20% exported to 60 other countries.