McCormick’s doing well post Gourmet Garden acquisition
United States based food company, McCormick, has posted increased sales results after acquiring Australia’s Botanical Food Company and its Gourmet Garden herb brand.
For its third quarter ended 31 August 2016, McCormick reported a 3 per cent sales increase when compared to the same quarter in 2015.
McCormick said 2 per cent of its sales for the quarter could be attributed to the acquisition of Stubbs BBQ and Gourmet Garden.
The remainder of the sales growth was attributed to product innovation, brand marketing support, expanded distribution and pricing actions to offset an increase in material support.
Chief Executive Officer of McCormick, Lawrence E. Kurzius, said McCormick’s strong third quarter financial results demonstrate the effectiveness of the company’s strategy.
“We are driving both sales growth and significant productivity improvements, and expect 2016 to be a record year for McCormick,” Kurzius said.
McCormick acquired Gourmet Garden in May 2016 for AUD $150 million (US $114 million). Gourmet Garden fresh and dried herbs are sold in 15 countries world-wide with the US its biggest international market.
More than 90 per cent of Gourmet Garden’s sales are to retail customers located in Australia and North America.