At the Barclays Capital Back-to-School Consumer Conference in Boston, McCormick & Company presented on its recent growth, including its strategy of expansion in emerging markets. Alan Wilson, McCormick chairman, president and CEO, stated as part of his opening address, “McCormick brings passion to flavor,” noting the company’s commitment to its financial objects for 2011 and beyond. With rising and volatile material costs still a major factor in the market, Wilson commented that the company is still committed to 6–8% sales growth and looks to achieve at least $45 million in cost savings.
To obtain these results, McCormick will focus on building brand strength in developed markets and driving category growth through increased marketing and product innovation, as well as supply a range of products at various price points and expand its distribution into multiple retail channels, including warehouse clubs and dollar stores.
Additionally, Lawrence Kurzius, president of McCormick International, discussed the company’s work in emerging markets, where the company wants to accelerate the 15% sales growth it has achieved here in the past five years. This will be done with the assistance of adding Poland-based Kamis and a majority stake in a new joint venture in India. In fact, in 2012, the company plans for emerging markets to account for more than 12% of projected sales, with further plans for growth in the company’s Americas, Europe, Middle East and Africa, and Asia/Pacific regions. Wilson concluded, "While we are adapting our near-term activities to the current environment, the fundamentals of our business remain intact and give me confidence in our on-going success.”