McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the entire food industry, such as retail outlets, food manufacturers, and foodservice businesses. Segments The company operates in two segments, Consumer and Industrial. Consumer From locations worldwide, this segment’s brands reach consumers in approximately 135 countries and territories. The company’s major brands in the Americas include McCormick, Lawry’s, and Club House. The company also markets authentic ethnic brands, such as Zatarain’s, Thai Kitchen, and Simply Asia. In Europe, the Middle East, and Africa, the company’s major brands include the Ducros, Schwartz, and Kamis brands of spices, herbs, and seasonings, as well as a line of Vahiné brand dessert items. In the Asia/Pacific region, the company markets products under the McCormick and DaQiao brands in China. In Australia, the company markets its spices, herbs, and seasonings under the McCormick brand; and its dessert products under the Aeroplane brand. In India, the company’s majority-owned joint venture owns and trades under the Kohinoor brand. The company’s customers span various retail outlets that include grocery, mass merchandise, warehouse clubs, discount and drug stores, served directly and indirectly through distributors or wholesalers. In addition to marketing its branded products to these customers, the company is a major supplier of private label items, also known as store brands. Approximately 250 other brands of spices, herbs, and seasonings are sold in the U.S. with additional brands in international markets. Some are owned by large food manufacturers, while others are supplied by small privately owned companies. Industrial This segment provides a range of products to multinational food manufacturers and foodservice customers. The foodservice customers are supplied both directly and indirectly through distributors. The company’s range of products includes seasoning blends, spices and herbs, condiments, coating systems, and compound flavors. Customers The company’s products are sold directly to customers and also through brokers, wholesalers, and distributors. In the Industrial segment, products are used by food and beverage manufacturers as ingredients for their finished goods and by foodservice customers as ingredients for menu items to improve the flavor of their foods. The company’s customers, Wal-Mart Stores, Inc. (Consumer segment) and PepsiCo, Inc. (Industrial segment), accounted for 11% and 11% of consolidated sales in 2014. Growth Strategy The company’s growth strategies include customer intimacy and product innovation based on consumer insights. Trademarks and Patents The company owns various trademark registrations. Although in the aggregate these trademarks are material to its business, the loss of any one of those trademarks, with the exception of its ‘McCormick’, ‘Lawry’s’, ‘Zatarain’s’, ‘Club House’, ‘Ducros’, ‘Schwartz’, ‘Vahiné’, ‘Kamis’, ‘DaQiao’, and ‘Kohinoor’ trademarks, would not have a material adverse effect on the company’s business. The ‘Mc – McCormick’ trademark is used by the company in connection with the sale of its food products in the U.S. and certain non-U.S. markets. Seasonality Due to seasonal factors inherent in the company’s business, its sales, income, and cash from operations are lower in the first two quarters of the fiscal year (year ending November 2014), increase in the third quarter and are higher in the fourth quarter due to the holiday season. Research and Development The company’s expenditures for research and development were $62.0 million in 2014. Governmental Regulation In the United States, the safety, production, transportation, distribution, advertising, labeling and sale of majority of the company’s products and their ingredients are subject to the Federal Food, Drug, and Cosmetic Act; the Food Safety Modernization Act; the Federal Trade Commission Act; state consumer protection laws; competition laws; anti-corruption laws; customs and trade laws; federal, state and local workplace health and safety laws; various federal, state and local environmental protection laws; and various other federal, state and local statutes and regulations. History McCormick & Company, Incorporated was founded in 1889.
mccormick & co-non vtg shrs
18 Loveton Circle
Sparks, MD 21152
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