McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the entire food industry, such as retailers, food manufacturers, and foodservice businesses. Segments The company operates in two business segments, Consumer and Industrial. Consumer From locations worldwide, this segment’s brands reach consumers in approximately 140 countries and territories. The company’s major brands in the Americas include McCormick, Lawry’s, Stubb's and Club House. The company also markets authentic regional and 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, Kamis and Drogheria & Alimentari brands of spices, herbs and seasonings and 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 and seasonings under the McCormick brand and its dessert products under the Aeroplane brand. In India, the company’s majority-owned joint venture trades under the Kohinoor brand. The company’s customers span various retailers that include grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce retailers served directly and indirectly through distributors or wholesalers. In addition to marketing its branded products to these customers, the company supplies 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. Sales to one of the company’s Consumer segment customers, Wal-Mart Stores, Inc., accounted for 11% of consolidated sales in 2015. Sales to one of the company’s Industrial segment customers, PepsiCo, Inc., accounted for 11% of consolidated sales in 2015. Strategy The company’s growth strategies include customer intimacy and product innovation based on consumer insights. Trademarks, Licenses and Patents The company owns various trademark registrations. Although in the aggregate these trademarks are material to the company’s business, the loss of any one of those trademarks, with the exception of its McCormick, Lawry’s, Zatarain’s, Stubb's, Club House, Ducros, Schwartz, Vahine, Kamis, Drogheria & Alimentari, DaQiao, and Kohinoor trademarks, would not have a material adverse effect on the company’s business. The Mc – McCormick trademark is extensively 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 generally are lower in the first two quarters of the fiscal year (year ended November 2015), increase in the third quarter and are significantly higher in the fourth quarter due to the holiday season. This seasonality reflects customer and consumer buying patterns, primarily in the Consumer segment. Research and Development The company’s expenditures for research and development were $60.8 million in 2015. Governmental Regulation In the United States, the safety, production, transportation, distribution, advertising, labeling and sale of many 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. The company was incorporated in 1915 under Maryland law.
mccormick & co-non vtg shrs
18 Loveton Circle
Sparks, MD 21152
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