McCormick at Barclays Conference Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Many consumers remain under pressure

“Many consumers remain under pressure and are seeking value priced products and lower-cost meals. And exceptionally competitive retail conditions across channels, traditional, discount, club, natural, e-commerce, and the fierce battle for the consumer within each of these channels. This pressure on retailers carries over to pressure on manufacturers in pricing promotions and fragmentation. And different choices are being made by consumers when they’re eating out, different choices in what they eat and where they eat.”

Four big trends

“the rise of millennials. The influence of ethnic demographics, social media, the move towards healthier eating, and the rise of the middle-class consumer in emerging markets”

Millenials love to cook

“In the U.S., as millennials move into their 20s and 30s, we’re seeing a strong interest in cooking, even greater than the baby boomers. This is great news for McCormick. Today’s millennials love to cook with 64% making this statement versus 52% of the remaining U.S. population. More than one-third indicate they’re also more health conscious when it comes to the food that they eat and they define value as real food, quality food, and unique food”

People eating healthier

“There’s a measurable shift toward healthy eating in many markets around the world with increased sales of fresh produce and waning demand for certain processed foods. The latest U.S. report on food and beverage purchases shows that after taste and price, health ranks as the third largest impact at a 71% response rate. This is up 10 percentage points from just two years ago.”