McCormick & Co. is deepening its investment in digital technology and enterprise resource planning (ERP) systems to drive growth and improve efficiency, company leaders said July 9 on the spice and seasoning maker’s second-quarter earnings call.
The 135-year-old company reported Q2 sales of $1.64 billion, up from $1.59 billion a year ago — a 3.1% increase. Net income rose to $184 million from $149 million. That’s a 23.5% jump, as McCormick benefited from stronger demand in its consumer segment and improved operational efficiencies.
How McCormick is leaning into digital growth
CEO Brendan Foley said McCormick is leaning into data and analytics to fuel what he called “volume-led growth.” That means selling more product, not just charging more for a strategy the company believes will pay off over the long term, even amid cost pressures from tariffs and inflation.
“Our growth levers are supported and enhanced through data and analytics as we continue to accelerate our digital transformation,” Foley told analysts.
Digital initiatives play a larger role across the business, from pricing and marketing to manufacturing and supply chain decisions. The company said it’s using analytics to manage $90 million in annual tariff exposure by tweaking sourcing and pricing strategies. More than 85% of McCormick’s products are made in the region where they’re sold. That helps cushion the impact of global disruptions, the company said.
Chief financial officer Marcos Mendes Gabriel added that McCormick is rolling out the digital tools and ERP upgrades across the company to streamline operations and reduce overhead. These efforts helped McCormick maintain flat gross margins despite higher ingredient costs.
McCormick is also expanding its digital presence in foodservice through its new online platform, McCormick for Chefs, aimed at restaurants and institutional buyers. Executives said digital tools are helping tailor offerings to large customers like quick-service restaurants and consumer packaged goods companies that are shifting recipes in response to health trends and new regulations.
“Execution, speed, and data intelligence are where we win,” Foley said. “Our technology investments are not only helping us manage cost volatility — they’re giving us a competitive edge.”
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