2011 McCormick Annual Report

McCormick has created an extraordinary work environment based on a culture of respect, inclusion and collaboration.

We encourage professional development at all levels. For nearly 80 years, our Multiple Management philosophy has helped develop the next generation of McCormick leaders. Each of our 17 Multiple Management Boards allows its members to make meaningful contributions to the business while developing their own career skills. We are strengthening

this foundation with cultural initiatives like our global high performance organization and the 2011 formation of our employee-led Americas Regional Diversity & Inclusion Council, which extends our diversity and inclusion efforts begun more than 10 years ago.

In 2009, we launched our Comprehensive Continuous Improvement program…CCI…to improve productivity and lower costs in operations around the world. Through 2011, we have achieved $156 million in cost savings.

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Helping our communities

We have a strong sense of values which includes giving back to the communities where we operate. These employees took time out from a Multiple Management Board meeting to help at a local food bank.

One of the things that sets McCormick apart is our unrivaled focus on quality—on a global scale. This focus has contributed to our long-standing track record of food safety, purity and integrity which continues to win us new business in the marketplace.

At McCormick, our attention to the quality of our products begins where spices, herbs and other crops are grown, such as rosemary from Morocco. We are leaders in global sourcing, and have deep experience with suppliers in more than 40 countries. We maintain an ongoing physical presence in our supply chain and have first-hand knowledge of local farm and market conditions where we operate. Our cleaning and processing facilities set world class standards.

We are also mindful of our responsibility to protect the Earth’s resources, and we are committed to improving our environmental impact. In the first phase of our program, we reduced water usage, electricity, greenhouse gas emissions and solid waste at least 17% on a per unit basis and have set new goals for the next five years.

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Applying world-class quality standards

Our 400 research and development employees globally have skills that include sensory analysis, which evaluates not only product quality and consistency, but also measures consumer preference.

People have long known about the healthful properties of spices and herbs. They are naturally low in calories, and many are high in antioxidants. Through independent studies funded by the McCormick Science Institute, we have data that support the positive link between certain herbs and spices and healthy living.

Consumers want less sodium, less fat and fewer calories without compromising on flavor. At McCormick we have the knowledge and ability to create products that taste good and are good for you. Many of our customers recognize this value: in 2011, approximately 40% of product

development projects for industrial customers were connected in some way to health or more natural ingredients. This trend will only gather momentum as interest in healthy living grows and consumers continue to appreciate the benefits of spices and herbs.

We bring the same focus on health and well-being to the workplace, where McCormick employees benefit from wellness initiatives that encourage healthful habits and healthier living.

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Expanding our healthy products

Many of us are interested in reducing salt in our diet. In the U.S. we offer more than 450 salt-free products. Also, we are attracting new consumers with reduced sodium versions of some of our most popular items. More than 75% of U.S. consumers purchasing our reduced sodium dry seasoning mixes are new users, and in 2011 we met this demand by adding new varieties.

At individual, team and Company levels, we set the bar high. Since 2000, McCormick has increased earnings per share at an 11% compound annual rate.

Acquisitions are a key avenue of growth. Our disciplined financial approach seeks investments with exceptional returns for our shareholders. In 2011, we purchased Kamis^®, a leading brand of spices and mustard in Poland, and we invested in a joint venture in India that distributes Kohinoor^® brand products to approximately 350,000 retail outlets. We are also achieving high performance by supporting our brands with increases in both digital and traditional marketing, and have expanded distribution in

dollar stores and warehouse clubs, as well as grocery retailers. We continue to invest significant resources in product development with plans to complete construction of a new technical innovation facility in China in 2012.

McCormick has paid dividends every year since 1925 and has increased that dividend for 26 consecutive years.

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Growing sales

We have increased sales at a 6% compound annual growth rate in the past five years through new products, brand marketing support, expanded distribution and acquisitions, as well as increased pricing and favorable currency exchange rates.

A passion for flavor is the driving force behind everything we do at McCormick. For nearly 125 years, we have understood the emotional connections that people have with flavors and food, and this rich legacy allows us to develop inspiring flavor solutions and to anticipate the flavor preferences of tomorrow. Since 2007, 8% to 10% of annual sales have come from products introduced in the past three years.

Including our 2011 acquisition in Poland and joint venture in India, our brands reach more than 110 countries. In many of these, we are the category leader—not only in spices and seasonings, but condiments, desserts and authentic ethnic cuisines. As evidence of our growth,

sales of our Hispanic products in the U.S. have increased 40% since 2006. Through our industrial business, we offer food manufacturers and foodservice customers one of the broadest arrays of flavor solutions.

Every day, no matter where or what you eat, you can enjoy food flavored by McCormick.

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Staying on the forefront of flavor

For over a decade, our annual look at the future of flavor has been eagerly anticipated by food editors, customers and consumers. Early in 2012, McCormick launched its first global Flavor Forecast^®, developed by our flavor experts from around the world.