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Can McCormick's Innovation Engine Help Drive Growth in 2H25?

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Key Takeaways

  • McCormick posted 2% organic sales growth in Q2, with volume gains across all regions.
  • New packaging, brand extensions and seasonal products are set to lift demand in 2H25.
  • Expansion in foodservice, and share gains in spices and sauces support sustained growth.

McCormick & Company, Incorporated’s (MKC - Free Report) second-quarter 2025 results highlighted innovation as a key to sustaining growth in the remainder of 2025. With organic sales up 2% in the second quarter and volumes improving across all regions, the company expects new packaging, brand extensions and seasonal products to boost purchases in the second half of the year. 

Ahead of the grilling season, McCormick rolled out refreshed packaging and merchandising. Later this year, it plans to relaunch its gourmet line with a new gold cap and modern design to highlight premium quality. Product extensions are also coming, including new Cholula cremosas, chamoy and cooking sauces. 

Seasonal offerings such as finishing salts in the summer and finishing sugars for the holiday season are designed to capture additional demand. In Europe, air fryer seasonings and new all-rounder blends are targeting younger consumers and emerging trends, while digital channels like e-commerce are gaining more focus.

The company is also expanding its presence in foodservice. The launch of McCormick For Chefs in the second quarter is aimed at increasing branded menu placements. Flavor Solutions is also securing more product development projects across beverages, snacks and health-oriented categories, helping counter weaker volumes from some large packaged food customers.

Across categories, McCormick continues to see share gains in spices, seasonings, recipe mixes, mustard and hot sauce. Distribution growth, innovation and portfolio renovation are likely to keep volumes strong in the second half.

Other Food Players Banking on Innovation for Growth

Conagra Brands (CAG - Free Report) , General Mills (GIS - Free Report) and B&G Foods (BGS - Free Report) are also focused on undertaking innovation to drive growth. Conagra Brands’ Future of Snacking 2025 report spotlights trends like bold flavors, on-the-go formats and “better-for-you” options, which are core to its innovation agenda. CAG is also launching more than 50 new frozen foods this year, including plant-based and gluten-free options. 

As part of its Accelerate Strategy, General Mills is boosting its innovation capabilities through new product launches and investments to expand its innovation hub. Despite softer demand in North America and pricing pressure, GIS has been seeing improved market share in many categories through innovation and strategic price adjustments.

B&G Foods is leaning on innovation, portfolio reshaping and operational discipline as key levers to regain growth momentum. BGS has strengthened its innovation pipeline by launching licensed seasoning and grilling blends under brands like Buffalo Trace, Fireball and Southern Comfort. 

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