Credit: Shutterstock photoMcCormick & Company, Inc.MKC has entered the natural foods movement amid the rising demand for organic food products. It now plans to ramp up its organic and non-GMO offerings over the next year.
As the holiday season is around the corner, the global leader in spices and seasonings is reshuffling its portfolio to increase the amount of organic herbs and spices. This Sparks-based spice maker has launched a vanilla extract labeled non-GMO that's currently being shipped to stores. In 2016, it expects more than 70% of its herbs, spices and extracts to bear the non-GMO label. Additionally, it expects 80% of its Gourmet herbs & spices business in the U.S. to be organic and non-GMO by 2016.
McCormick pointed out that most of its herbs & spices are already non-GMO, which means that they are sourced from plants that are not genetically engineered. But a labeled non-GMO product will increase transparency at the point of sale.
McCormick stated the organic and non-GMO effort is the first under a new consumer initiative, in response to consumers' demand for quality flavors with pure ingredients in their food. We believe the labeled organic and non-GMO offering would give a boost to the company's sales and increase consumers' confidence.
Apart from its organic offering, McCormick regularly enhances its products through innovation in order to remain competitive and tap the rising demand for new flavors, spices and herbs, which are fast replacing demand for sugar, salt and fat. The company has witnessed a 20% rise in spice, herb and seasoning purchases in the last five years, owing to the rising demand for flavors.
McCormick is also focusing on building sales through brand marketing investments and acquisitions. The company's recent acquisitions are expected to boost revenues in the second half of fiscal 2015. McCormick has also been regularly launching new products in order to remain competitive. The company also remains optimistic on its higher pricing and cost savings initiatives. However, McCormick remains apprehensive about higher material costs, which can hurt 2015 earnings. Currency headwinds and difficult retail and competitive conditions in many markets also remain concerns.
McCormick has a Zacks Rank #4 (Sell). Investors interested in the space can also consider Omega Protein Corp. OME , Flower Foods, Inc. FLO and Post Holdings, Inc. POST . While Omega Protein sports a Zacks Rank #1 (Strong Buy), Flower Foods and Post Holdings carry a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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