Businessweek

McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the entire food industry, such as retail outlets, food manufacturers, and foodservice businesses. Business Segments The company operates in two business segments, Consumer and Industrial. Consumer This segment includes major brands in the Americas, such as McCormick, Lawry’s, and Club House. The company also markets authentic ethnic brands, such as Zatarain’s, Thai Kitchen, and Simply Asia. In Europe, the Middle East, and Africa, its major brands include the Ducros, Schwartz, and Kamis brands of spices, herbs, and seasonings and a line of Vahiné brand dessert items. In the Asia/Pacific region, the company’s primary brand is McCormick, with the exception of India where its joint venture owns and trades under the Kohinoor brand. Its brands reach consumers in approximately 110 countries. The company’s customers span various retail outlets that include grocery, mass merchandise, warehouse clubs, and discount and drug stores, served directly and indirectly through distributors or wholesalers. In addition to marketing its branded products to these customers, the company also supplies private label items, also known as store brands. 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, natural spices and herbs, wet flavors, coating systems, and compound flavors. Customers and Distribution The company’s products are sold directly to customers and also through brokers, wholesalers, and distributors. Its major customers include Wal-Mart Stores, Inc. and PepsiCo, Inc. The company’s customers include supermarkets, warehouse clubs, and food distributors. Trademarks, Licenses, and Patents The company’s trademarks include McCormick, Lawry’s, Zatarain’s, Club House, Ducros, Schwartz, Vahiné, Kamis, and Kohinoor. The ‘Mc – McCormick’ trademark is 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 are lower in the first two quarters of the fiscal year (year ending November 2012), increase in the third quarter and are 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 $57.8 million in 2012. History McCormick & Company, Incorporated was founded in 1889.