McCORMICK
McCORMICK & COMPANY 2007 ANNUAL REPORT
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  We are gaining distribution of our products in China’s street markets which are a frequent stop for consumers.
  In Europe we are growing sales with increased brand support, improved merchandising systems and the introduction of innovative new products.
 


 

 

 


Toppers®, and a relaunch of our successful grinders. Brand support includes TV advertising featuring our chef character in France, and both TV and radio advertising in the U.K. We have just launched a print advertising campaign in the U.K. that will be rolled out more broadly across Europe in 2008.

GORDON > Having just returned from several years in Europe, I can tell you first-hand that we have turned a corner with this business. We have reduced complexity, focused on our most profitable businesses, built our brands and developed our people capabilities.
    The most striking example of our progress is in our industrial business, where we have gone from approximately 500 customers in 2003 to 50 customers by the end of 2007. In this market as well, we are focused on the largest customers with the greatest potential for growth.

LAWRENCE> These customers are the leaders in their industry, and many of them have multinational businesses. In addition to a strong top-to-top relationship, we are supporting them from our locations around the world with product innovation and production.

ALAN> This is certainly true in China and was really the origin of our business there about 15 years ago. We built a facility to support the expansion of industrial customers in 

 

this region and from this same facility, launched a line of consumer products that is profitable and growing rapidly.
    China, together with Australia and other countries in the region, comprised 6% of 2007 sales. Our goal is to more than double our sales in the Asia Pacific region by 2012. We expect to continue our rapid pace of both consumer and industrial sales growth in China and to expand into other markets with good growth characteristics, such as India.

Across all markets, what eating trends are you watching most closely?

ALAN> McCormick is on the leading edge of flavor. Every year we bring together top chefs to discuss the hottest trends and develop our McCormick Flavor Forecast™, which is eagerly awaited by professional chefs and food editors.
    I would say consumers’ interest in health and wellness is the number-one trend. We recently launched the McCormick Science Institute to advance the health benefits of natural spices and herbs. As consumers work to reduce their intake of fat, salt or sugar, McCormick is ideally suited as an expert in natural spices and herbs.

 

 
 
McCormick & Company 2007 Annual Report       8
 
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