Today, flavor giant McCormick announced it has reached a definitive agreement with Grupo Herdez to purchase an additional 25% stake in McCormick de Mexico, a joint venture established in 1947, for $750 million. This acquisition will increase McCormick’s ownership to 75%, paving the way for further expansion in the Mexican market.
Founded in 1947, the joint venture with Mexican food processing company Grupo Herdez has been a leading player in the condiments and sauces market in Latin America’s second-largest economy.
Today’s deal is valued at $750 million.
McCormick de Mexico’s portfolio mainly includes mayonnaise, with its flagship being McCormick Mayonesa con Jugo de Limones.
Brendan M. Foley, Chairman, President, and CEO of McCormick told investors, “This marks the beginning of an exciting new chapter for McCormick in Mexico. With this expanded ownership, we will advance our global flavor leadership and increase our presence in condiments and sauces. The McCormick brand has been a household staple in Mexico for 78 years, with market leadership in high-growth categories, most notably in mayonnaise. In addition, the brand commands strong loyalty among Mexican consumers and foodservice operators. The strength of the brand and its remarkable track record combined with our differentiated global flavor expertise and capabilities will enable us to drive further growth in Mexico, an attractive and high growth market.”
“We have had a long and successful partnership with Grupo Herdez, and we look forward to continuing our collaboration. With the expanded ownership of McCormick de Mexico, we plan to build upon their strong results by leveraging our combined expertise in category management, insight-driven innovation as well as best-in-class marketing to expand in adjacent categories and increase channel penetration.”
Héctor Hernández-Pons Torres, Chairman and CEO of Grupo Herdez stated, “This milestone will enable the McCormick brand, with its rich heritage and diverse flavor portfolio, to reach even more consumers across Latin America. With McCormick’s extensive expertise in herbs and spices, condiments and sauces and global flavor leadership, we are excited to capitalize on new opportunities and achieve even greater success together.”
McCormick de Mexico’s annual net sales are approximately $810 million, and the company expects market growth to be in the mid-single digits range.
Click here to read our exclusive interview with McCormick Chairman and CEO, Lawrence E. Kurzius
By CEO NA Editorial Staff
