McCormick is a global leader in flavor, manufacturing, marketing, and distributing spices, seasoning mixes, condiments, and other flavorful products to the entire food industry. The company operates through two segments: consumer and flavor solutions. McCormick's major sales, distribution, and production facilities are located in North America, Europe, and China, with additional facilities in Australia, Central America, Thailand, and South Africa. The company's products are used in cooking at home, dining out, purchasing quick service meals, or enjoying snacks. They offer a range of products from premium to value-priced, catering to demands for clean-label, organic, natural, reduced sodium, gluten-free, and non-GMO options. The consumer segment has a higher overall profit margin than the flavor solutions segment.

• Employees: 13,800 (as of November 30, 2023)
• Geographic Footprint: Approximately 170 countries and territories
• Headquarters: Hunt Valley, Maryland
• Founded: Not explicitly stated in the 10-K
• Number of locations/facilities: Major facilities in North America, Europe, and China, with additional facilities in Australia, Central America, Thailand, and South Africa
• Revenue: $6.66 billion (FY2023)
• Market Share: Not explicitly stated in the 10-K
• Key Subsidiaries/Brands: McCormick®, French's®, Frank's RedHot®, Lawry's®, Cholula Hot Sauce®, Club House®, Gourmet Garden®, OLD BAY®, Zatarain's®, Stubb's®, Thai Kitchen®, Simply Asia®, Ducros®, Schwartz®, Kamis®, La Drogheria®, Vahiné®, DaQiao®, and Aeroplane®

• CEO: Brendan M. Foley
• CFO: Michael R. Smith
• Other Key Executives:
  • Andrew D. Foust - President, Americas
  • Katherine A. Jenkins - Chief Growth Officer
  • Ana G. Sanchez - President, EMEA
• Board Chair: Not explicitly stated in the 10-K

Mr. Foust has been with McCormick since 2018, Ms. Jenkins since 2017, and Ms. Sanchez since 2018, holding various leadership positions.

• Annual Revenue: $6.66 billion (FY2023)
• Net Income: $680.6 million
• Market Cap: Not explicitly stated in the 10-K, but market value of voting common stock held by non-affiliates at May 31, 2023 was $1,449.8 million and non-voting common stock held by non-affiliates at May 31, 2023 was $21,526.5 million.
• Total Assets: $12.86 billion
• Number of Employees: 13,800 (as of November 30, 2023)
• Key Financial Highlights: Net sales increased by 4.9%, operating income increased by 11.5%, and diluted earnings per share was $2.52.

McCormick offers a wide range of products across two main categories:

• Spices and Seasonings: Includes a variety of spices and seasoning blends, with McCormick being a global brand leader in this category.
• Condiments and Sauces: Includes a variety of condiments and sauces, with McCormick being a global brand leader in this category and in the U.S.
• Flavor Solutions: Includes seasoning blends, spices and herbs, condiments, coating systems and compound flavors for food manufacturers and foodservice customers.

McCormick operates through two main business segments:

• Consumer Segment: Contributed approximately 57% of consolidated net sales and 73% of consolidated operating income in 2023. This segment sells products through various retail channels, including grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce.
• Flavor Solutions Segment: Contributed approximately 43% of consolidated net sales and 27% of consolidated operating income in 2023. This segment provides products to multinational food manufacturers and foodservice customers.

McCormick's growth strategy includes customer engagement and product innovation based on consumer insights. In the consumer segment, they focus on building brand recognition and loyalty through advertising and promotions. In the flavor solutions segment, they differentiate themselves through culinary and consumer-inspired flavor development and a broad product offering. Strategic priorities include optimizing brand marketing investments, driving innovation, and pursuing acquisitions that meet the growing demand for flavor and health. The company is also focused on productivity improvements and cost savings through its CCI and GOE programs, and is investing in a global business services organization and an ERP system.

• Key strategic initiatives: Optimize brand marketing investments, drive innovation, pursue strategic acquisitions, improve productivity and reduce costs, and build a scalable platform for growth.
• Growth drivers: Brand marketing support, product innovation, and acquisitions.
• Investment priorities: Digital marketing, new product development, and business transformation initiatives.

McCormick operates in the highly competitive food industry. The company competes with numerous brands of spices, seasonings, condiments, and sauces, some owned by large food manufacturers and others by small privately-owned companies. McCormick differentiates itself through innovation, brand marketing, and analytical tools to help customers optimize profitability. The company also faces competition from private label items.

• Market Position: Brand leader globally in spices and seasonings and a brand leader globally and in the U.S. in condiments and sauces.
• Key Competitors: Large food manufacturers and small privately-owned companies.
• Industry Trends: Increasing consumer demand for clean-label, organic, natural, reduced sodium, gluten-free, and non-GMO products; growth in e-commerce; and customer consolidation.

• Market Risks: Deterioration of global economic conditions, economic recession, slow growth, periods of inflation, and economic uncertainty in key markets may adversely affect customer and consumer spending. Competition, brand relevance, and increased use of private label products also pose market risks.
• Operational Risks: Issues affecting the supply chain and procurement of raw materials, labor shortages, turnover, and labor cost increases, and disruptions in the supply chain could adversely affect operations.
• Financial Risks: Fluctuations in foreign currency markets, increases in interest rates, and changes in credit ratings may negatively impact the company.
• Regulatory Risks: Governmental regulations, changes in legal requirements, and enforcement practices could increase compliance costs and create other obligations.