McCormick & Company Inc. (MKC: Quote) said that it is investing in its business with brand marketing support and acquisitions, and fueling this growth with productivity improvements through its Comprehensive Continuous Improvement program.
Long-term, the company said it expects to achieve annual growth of 4-6% in sales, 7-9% operating income and 9-11% earnings per share. The company said along with a commitment to annual dividend increases, these financial objectives should lead to a double-digit increase in total shareholder return for the company's investors.
McCormick noted that in the U.S., consumption of spices has grown almost three times as fast as population growth. Today, 87% of consumers say taste is the most important driver of food selection, and 69% like to try new flavors, an increase of 5% in the past two years according to the Institute of Food Technologists. Outside of the U.S., similar forces are driving consumer demand for flavor.
The company has a particular interest in emerging markets and expects 20% of sales to come from these markets by 2015.
by RTT Staff Writer
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