BALTIMORE — McCormick & Co., Inc. intends to make hot sauce “the condiment of the next generation.”
Presenting to analysts at the Feb. 23 Consumer Analyst Group of New York virtual conference, Lawrence E. Kurzius, president and chief executive officer of McCormick, said the company’s efforts to achieve that goal include “staying contemporary and in the moment with our consumers.”
To that end, McCormick is building brand relevance and hot sauce awareness through its brand marketing and e-commerce initiatives. A recent example includes television advertisements featuring Frank’s RedHot and former National Football League player Eli Manning that ran during the NFL season. McCormick also is promoting the “motherlode of flavor” in its Cholula sauces.
Both Frank’s RedHot (acquired in August 2017) and Cholula (acquired in November 2020) are relative newcomers to McCormick’s portfolio, but their impact has been significant.
“The acquisitions of our Frank's RedHot and Cholula brands and the organic growth we've delivered has advanced McCormick to be the No. 1 hot sauce company in the world,” Mr. Kurzius said. “Global growth in hot sauce is projected to outpace the total condiment category. The younger generation is driving that growth, and we plan to drive hot sauce to be the condiment of the next generation. We have the fastest-growing hot sauce brands with Frank's RedHot and Cholula over-indexing with younger generations, and we continue to gain share in the US and international markets. Consumers want a more flavorful and approachable hot sauce, and we have the perfect blend of flavor and heat with our products.”
He added that with Frank’s RedHot and Cholula now in the fold McCormick is delivering on consumers’ demand for heat and gaining new households with products across its entire portfolio for every level of heat consumers crave.
“We have grown Frank's household penetration double digits over the last four years and have doubled Cholula’s since its acquisition a year ago,” he said. “We have expanded into new formats and categories and are continuing to blaze forward with new innovation, including a Frank's Nashville Hot Wings Sauce this year.”Mr. Kurzius said more than 40% of McCormick’s new product sales in 2021 related to hot and spicy.