On the Journey... with Bob Lawless

How do you balance restructuring, revitalization and other initiatives with running the business?

Talented, dedicated and hard-working employees and effective leadership make it happen. It takes setting clear plans, keeping an eye on our goals and maintaining open communication.

     In the past, we have had success managing the business while also implementing key initiatives and programs like B2K and integrating major acquisitions like Ducros. There’s no reason why that shouldn’t continue in the future.

How will we benefit from the increasing interest in healthier products?

I believe it presents an enormous opportunity for us. Think about it. Reducing salt, removing fat and lowering sugar content takes away a lot of flavor. We provide flavor that can take the place of what goes away.

     Over the years we have grown from a supplier of natural spices and herbs, to a leading provider of value-added products. In 2000, the percentage of our sales from value-added products was approximately 60%. Today, more than 70% of our sales are from value-added products.

     In recent years, our development efforts have included a focus on wellness. In 2006 we introduced a number of lower sodium items such as chili and taco seasonings. In 2007, we will expand our line of organic products. For our restaurant and food manufacturing customers, we are developing seasonings, condiments and other flavors that add great taste to healthier products.

     Going beyond the products we provide, in 2007 we are forming the McCormick Science Institute to advance the health benefits of spices and herbs.

What makes McCormick a good investment?

We are a good investment for many reasons. Here are a half dozen that stand out to me:

  Spanning all types of food and beverages across our consumer and industrial businesses, flavor is an exciting business with few boundaries.

  Our strategy – to improve margins, invest in the business, and grow sales and profits – is successful and sustainable.

  We deliver on our commitments – our aggressive plans launched at the end of 2005 are already yielding significant results.

  We generate a significant amount of cash, strategically investing it in capital projects, dividends, share repurchases and acquisitions.

  We possess strong values and a deep culture. For 75 years we have embraced the principles of participative management and engaged employees at all levels.

  Our great track record in building shareholder value during the past 10 years provides reason to look forward to the next 10 years with equal enthusiasm.