McCormick Advances Flavour Leadership in Mexico

McCormick & Company Inc. (NYSE: MKC) (the "Company"), a global flavour leader, announced today that it has signed a definitive agreement with Grupo Herdez to acquire an additional 25% ownership interest in McCormick de Mexico, a 1947 joint venture, for $750 million, subject to customary closing and regulatory conditions. The acquisition will expand McCormick's ownership to 75%, allowing for further expansion in the Mexican market. Furthermore, the deal creates a strategic base for future expansion in Latin America. McCormick de Mexico is a well-known food firm in Mexico, with a diverse portfolio that includes mayonnaise, spices, marmalades, mustard, spicy sauce, and tea produced under the McCormick names.

"This is the start of an exciting new chapter for McCormick in Mexico. With this increased ownership, we will strengthen our worldwide flavour leadership and grow our presence in condiments and sauces', stated Brendan M. Foley, Chairman, President, and CEO. "For 78 years, the McCormick brand has been a household staple in Mexico, leading the market in high-growth categories such as mayonnaise. Furthermore, the brand enjoys significant loyalty among Mexican consumers and foodservice operators. The brand's strength and outstanding track record, along with our differentiated global flavour experience and skills, will allow us to achieve additional growth in Mexico, an attractive and rapidly growing market."

Mr. Foley went on to say, "We have had a long and fruitful partnership with Grupo Herdez, and we hope to continue working together. With extended ownership of McCormick de Mexico, we intend to build on their great performance by combining our expertise in category management, insight-driven innovation, and best-in-class marketing to expand into adjacent categories and enhance channel penetration. Furthermore, this deal establishes a strategic base for expanding our operations and distribution throughout Latin America, keeping with the goals we announced at Investor Day."

 "We are proud of the nearly 80 years of productive partnership we have built with McCormick, and this transaction marks an exciting evolution of our relationship," said Héctor Hernández-Pons Torres, Grupo Herdez's Chairman and CEO. "This milestone will allow the McCormick brand, with its rich legacy and varied flavour variety, to reach even more consumers in Latin America. With McCormick's broad knowledge in herbs and spices, condiments and sauces, and global flavour leadership, we are eager to seize new opportunities and achieve even greater success together."

McCormick de Mexico's annual net sales are over $810 million1 and are forecast to increase in the mid-single digits. McCormick de Mexico's product line is mostly comprised of Mayonnaise, one of its flagship goods. McCormick Mayonesa with Jugo de Limones is the most well-known brand, defined by its creamy texture with an added zing of lime and a distinct flavour profile popular with Mexican consumers. The portfolio also includes other popular McCormick items. The brand's strength, combined with McCormick's worldwide capabilities, opens up new growth potential in Mexico and Latin America through category extension, improved household penetration, and channel expansion.

Source: McCormick & Company, Inc.