McCormick & Company, Inc. (NYSE:MKC) has introduced new products to make fall and holiday meals more delicious. The 14 new gourmet flavor products will be available in stores this autumn. The new flavors are inspired by Japanese and Korean cuisines.
Among the new offerings, McCormick has launched new blends packed with ingredients like chia and matcha, and other Asian flavors and food color made from plants and seeds. The company has also introduced Kitchen Basics Bone Broth, Kitchen Basics Organic Stocks, Organics Recipe Mixes, pepper blends and other flavors to enhance the taste of meals this fall and the subsequent holiday season.
McCormick regularly enhances its products through innovation in order to remain competitive and tap the rising demand for new flavors, spices and herbs, which are fast replacing demand for sugar, salt and fat.
We note that the company has witnessed a 20% rise in spice, herb and seasoning purchases in the last five years, owing to the rising demand for flavors. We believe the announcement of new products will surely lead consumers to explore more flavors at home. This will further boost its sales.
Overall, McCormick is focusing on building sales through acquisitions, and expects strong sales momentum to continue in fiscal 2015. Its cost saving initiative is also appealing. The company also expects lower impact from currency headwinds in 2016. However, McCormick expects sluggish earnings growth in the near term due to higher brand marketing expenses.
McCormick has a Zacks Rank #3 (Hold). Investors interested in the space can also consider B&G Foods, Inc. (NYSE:BGS) , Post Holdings, Inc. (NYSE:POST) and The J.M. Smucker Company (NYSE:SJM) . All of these stocks sport a Zacks Rank #1 (Strong Buy).
SMUCKER JM (SJM): Free Stock Analysis Report
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MCCORMICK & CO (MKC): Free Stock Analysis Report
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