McCormick (MKC) - Get Free Report, the company whose matching jars have filled traditional spice racks for decades, is working to overcome inflation and supply-chain issues that have troubled many industries in the post-pandemic era.
Lawrence Kurzius, company chairman and CEO, told Jim Cramer on a recent episode of "Mad Money" that while McCormick has been able to deliver 20% sales and earnings growth since the pandemic began, the price inflation they're seeing is unprecedented. It ranges from ingredients to packaging to labor and transportation, he said, and they're doing everything they can to keep it under control. Please click here to find out how you can profit from the Real Money team’s investment ideas.
Kurzius said that consumers continue to crave flavorful foods and McCormick's spices are the best way to get that flavor at home. McCormick is now the No. 1 maker of hot sauce, a category that's on track to surpass ketchup as America's favorite condiment.
McCormick's acquisition of hot sauce maker Cholula late last year is already paying off. McCormick recently reported an 8% sales increase in the third quarter vs. a year ago. The company said sales from Cholula and FONA another food flavorings maker acquired last year added 4% to the sales increase.
Started by Willoughby M. McCormick in a basement in 1889, the company has grown into a multinational corporation with numerous brands.
Consumers are also looking for natural ingredients and clean labels, Kurzius added, something McCormick added to with its FONA deal. Among McCormick ‘s modern adventures are its popular National Taco Day campaign that received 700 million impressions and over 5,000 applicants for their honorary Ambassador of Taco Relations position.