2012 Highlights
We achieved new milestones in 2012, reaching $4 billion in net sales and $400 million of net income.
In more than 110 countries around the world, consumers rely on McCormick’s trusted brands to enhance their enjoyment of food. We have leading shares in growing categories, and in our industrial business, supply customized flavor solutions to top food manufacturers and foodservice companies.
Emerging markets reached 14% of our 2012 sales, up from 7% five years ago
While we are achieving solid growth in developed markets, we have an increasing presence in emerging markets. This has been accomplished through internal growth initiatives in markets like China and Mexico, where we have increased sales 91% and 78% respectively in the past five years.
We have accelerated this emerging market growth with acquisitions and joint ventures. Acquisitions completed in 2011 expanded our presence in Eastern Europe, Russia and India, and added significantly to our 2012 sales growth. In 2013, we expect to complete an acquisition in China that will increase our business there by more than 60%.
We launched more than 250 new branded products in 2012
As a category leader, our role is to bring innovation to flavor. Our global growth platforms include herbs, spices and seasonings, recipe mixes, and “regional leaders”—brands like Zatarain’s in the U.S. and Vahiné in France. The inspiration for our innovation begins with the consumer, leading to new products that feature ethnic flavors, convenience, freshness, organic ingredients and more.
We have 400 research and development professionals around the world and, in 2012, made significant investments in our facilities in the U.S., Mexico, U.K. and China. Across both our consumer and industrial businesses, new products launched in the past three years accounted for 8% of our 2012 sales, and by 2015 we expect to move this to at least 10% annually.
Brand marketing approached $200 million in 2012, up from $112 million in 2007
We continue to increase the marketing support behind our brands. Given the difficult global economy, we are emphasizing the value of our brands which are often just pennies per serving.
In addition, consumers are spending more time on the internet. We are connecting with them throughout the “flavor lifecycle,” from recipe ideas to sharing success with family and friends. Digital marketing, as a percentage of total brand marketing is up three times from just two years ago.
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