McCormick Gourmet

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Digital marketing continues to achieve one of our highest returns on investment in brand marketing, and in 2014 we spent twice as much in this area compared to 2011. Through digital marketing we connect directly with consumers to provide personalized recipes, build grilling communities—now one million strong—and bring together those with a common interest to share flavor stories. Because of these efforts, L2, a business intelligence service, recognized McCormick as a food industry leader in its Digital IQ Index.

Customer intimacy is another growth strategy for our business. Among our broad range of customers are multi-national industry leaders: for our industrial business, top customers include food manufacturers and restaurants, while on the consumer side of our business we are a category leader for food retailers in markets around the world. Our sales teams collaborate with these retailers on merchandising, product assortment and pricing to create solutions that are optimal for us, our customers and consumers.

In China, we also work with customers to expand our geographic reach. Including both consumer and industrial sales, China is now our third largest country in sales. Acquisitions played a role in this growth in China, where in mid-2014 we celebrated the first anniversary of our acquisition of Wuhan Asia Pacific Condiments, which is exceeding our sales and profit projections. Since 2008, we have invested US$1.3 billion in acquisitions and are pursuing other acquisitions with a focus on emerging markets, which now account for 17% of consolidated sales.

Importantly, we continue to grow our business responsibly and are making great progress with our goals to improve our environmental impact, source sustainably and inspire healthy food choices. Also in 2014, we were pleased, through our 125th anniversary Flavor of Together program, to donate US$1.25 million to United Way Worldwide to help feed those in need.