While Costs Remain Heated and Supply Chain Disruptions Persist, McCormick's Dominant Edge Unwavering

As the leading player in the $11 billion global spices and seasoning market--with 20% share, 4 times the next-largest operator--McCormick is a valuable partner for retailers. However, competitive and macro headwinds abound. For one, despite management’s contention to the contrary, we surmise that its business will be challenged as the at-home eating trend during the pandemic cools. Further, McCormick is facing a pronounced acceleration in costs (related to commodities, packaging, freight, and labor, which management has alluded to as being the highest in the past decade or two) that has ensnarled firms of all stripes.