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MARK > Our GrillMates® line in the U.S. is a good example. It
began in the early 1990s with a single seasoning blend that
originated in Canada. Today 31 GrillMates® items include
marinades, rubs, reduced sodium varieties and more. Year
after year we have grown sales of these products at a rapid
pace, and annual sales are now $35 million.
Following the acquisition of the Ducros brand in Europe,
we introduced three Ducros grinders in the U.S. under the
McCormick label. Six years later, these products have
reached $22 million in sales with 14 varieties.
We have also been expanding our products designed for
consumers of Hispanic descent. These products now
account for 8% of U.S. consumer sales, and they grew
11% in 2007.
BOB > The Hispanic items we offer include mayonnaise and
marmalade imported from McCormick de Mexico. This 60-year-old joint venture has made McCormick the leading
brand in Mexico, and Hispanic consumers in many U.S.
markets actively seek these products. This highly successful
joint venture now accounts for most of our income from
unconsolidated operations, which in 2007 comprised nearly
10% of our earnings per share.
We can’t overlook two other avenues of sales growth –
our marketing programs and acquisitions.
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ALAN> We have increased our level of brand support in
recent years and are getting better each year at measuring
the effectiveness of our spending. We are seeing the best
returns from our public relations activity, print advertising
and television advertising.
As for acquisitions, they’ve accounted for one-fourth of
our 7% average annual sales growth in the past five years
and will continue to be a key part of our sales growth. Our
recently announced agreement to acquire the Lawry’s
business is evidence of our continued progress with acquisitions.
In our developed markets, we are seeking niche
brands that have a distinct flavor profile. In markets where
we currently have low penetration, including emerging
markets, we are targeting leading brands.
Besides acquisitions, how will you grow sales outside
North America?
LAWRENCE > Europe is our second-largest market, contributing
25% of Company sales. Many of the same consumer
business initiatives we talked about for North America are
driving our growth in this market.
New merchandising systems introduced in the U.K. and
France are designed to simplify the shopping experience,
reduce labor and optimize our shelf space. Product innovation
includes an award-winning spice package, easy-to-use
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