McCormick & Company, Incorporated
McCormick & Co. makes and sells flavor products used across home cooking, packaged foods, and foodservice. Its portfolio centers on herbs, spices, seasoning mixes, condiments, and related branded products sold through consumer retail channels and to food manufacturers and restaurants.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueRetail herbs, spices, seasonings, condiments, and sauces sold under McCormick brands.
Ingredients and customized flavor systems sold to food and beverage manufacturers and foodservice customers.
Customers
McCormick sells to a broad mix of retailers, food manufacturers, and foodservice businesses, with consumer demand ultimately driven by household cooking and eating occasions. The company also relies on a small number of large customers in each segment, making customer concentration an important feature of the business model.
Households buy McCormick-branded spices, seasonings, and condiments for everyday cooking and holiday meals.
Packaged food companies buy flavor ingredients and systems to improve taste, consistency, and product differentiation.
Restaurants and foodservice operators buy flavor products for menu development, prep, and take-out/dine-in offerings.
Major customers such as Walmart and PepsiCo contribute meaningful concentrated revenue and influence pricing and service levels.
Strategy
McCormick is focused on growing sales through brand marketing, category management, customer engagement, new products, and acquisitions. Management also emphasizes the CCI program to fund growth investments, expand margins, and support long-term profitable growth despite commodity, trade, and consumer uncertainty.
Base business growth depends on brand strength, category management, and repeat household demand.
Food manufacturers and foodservice customers value breadth, innovation, and tailored flavor development.
Cost savings help offset inflation and fund reinvestment without sacrificing margin expansion.
Ownership of McCormick de Mexico creates a platform for Mexico and Latin America growth.
Geography
McCormick operates globally, with major sales, distribution, and production facilities in North America, Europe, and China, plus additional facilities in Australia, Central America, Thailand, and South Africa. Management disclosed that about 39% of fiscal 2024 sales were generated outside the U.S., and the recent increase in ownership of McCormick de Mexico expands its Latin American platform.
Risks
McCormick faces demand risk from inflation, recession, and weak consumer spending because many products are purchased based on end-user demand. The business is also exposed to supply-chain disruption, commodity volatility, customer concentration, and cyber risk, all of which can affect availability, pricing, and margins.
- Economic slowdown and inflationImpact: HighLikelihood: High
Demand for spices, condiments, and flavor systems depends on consumer and customer spending.
Exposure: Consumer and foodservice demand
- Commodity cost volatilityImpact: HighLikelihood: High
Raw materials such as pepper, onion, garlic, capsicums, tomato products, sugar, and salts can move sharply.
Exposure: Input costs and gross margin
- Supply chain and manufacturing disruptionImpact: HighLikelihood: Medium
The company relies on third-party transport, suppliers, and some concentrated production sites.
Exposure - Customer concentrationImpact: MediumLikelihood: Low
Walmart and PepsiCo each represented about 12% of consolidated sales in recent years.
Exposure: Revenue concentration and pricing leverage
- Cybersecurity and IT incidentsImpact: MediumLikelihood: Low
Operations depend on interconnected systems across the company and third parties.
Exposure
Accounting
Judgemental itemsTrade discounts, rebates, and returns are estimated at sale and adjusted over time.
Impact: Affects reported net sales and margin trends
Inventory is usually built in the third quarter for holiday demand in the fourth quarter.
Impact: Affects quarterly revenue, working capital, and cash flow comparability
Reporting unit fair values rely on discounted cash flow models and market discount rates.
Impact: Could create non-cash impairment charges if assumptions weaken
Management excludes restructuring and process-improvement charges from adjusted results.
Impact: Can change the gap between GAAP and adjusted operating performance
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Last updated: 24/09/2026