McCormick stirs up liquid sauces category

McCormick and Co. plans to expand into an already "packed" market for liquid sauces for one-skillet meals where other offerings are already available from Campbell Soup, General Mills and Frontera to name a few.

The skillet sauces come in an easy-to-open and -pour pouch design and are available in flavors like "Stir-fry" and "Fajita."

The company is responding to the trend where busy consumers want a home-cooked, fresh tasting family meal in little or no time, which is driving the sales of prepared foods. Also, research shows that Millennials are taking up an interest in the kitchen.

“In the U.S., our data shows that both McCormick’s gourmet and everyday products are well represented in Millennial households,” says Alan Wilson, chairman, president and CEO, McCormick & Co., during an Oct. 2 call with financial analysts to discuss third-quarter performance.

The announcement came as McCormick reported a 1% drop in sales in the U.S. Overall sales rose 3% on rising demand in China, Europe, Africa and the Middle East.

"We continue to be encouraged by the growing consumer demand for flavor in markets around the world. To meet this demand, we are introducing exciting new products, including Skillet Sauces, Freshlock herbs and, in early 2015, will relaunch our premium gourmet line in the U.S.,” says Wilson.

“These flavors leverage mainstream family favorites with a bit of a twist,” Wilson adds. “Both the gluten-free items and skillet sauces are designed to build upon our momentum in the recipe mix category. We are already gaining good retail acceptance of these new products and anticipate strong consumer trial and repeat purchases. Again, improved results for our consumer business in the Americas are going to take some time but we have had initial progress with the actions that we have under way.”