US spice maker McCormick is working to build its presence in developing markets, with the company looking for 12% of its turnover to come from these markets by 2015, up from 9% in 2010.
The company sees India as a key part of this strategy, with McCormick chairman, president and CEO Alan Wilson outlining “four avenues of growth” in the country.
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Wilson highlighted the importance of the market, saying that the country has five times the spice use than than of the US.
He added that while spices are often bought in bulk in the country, the “emerging middle class is seeking the higher quality and convenience of branded products” and that India’s middle class expected to grow to 40% of the population by 2025.
Wilson said, as part of the four-part strategy, the company will work to acquire other “market leading” local businesses, like the 26% stake it took in Eastern Condiments in November last year, to market “Indian products to Indian consumers”.
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The company also wants to take Indian products and market them globally, as well as leverage the supply chain as it increases scale and introduce McCormick products to Indian consumers.
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By GlobalDataHe said the company would continue to grow its operations in India through “further brand alliances and acquisitions while pursuing further industrial opportunities”.
In China, McCormick is also working to expand, as the country and south-east Asia accounted for some 5% of company sales in 2010.
The company plans to continue to develop its offer in 2011, and plans to nearly double capacity in its Guanzhou facility this year to “keep pace with higher demand for condiments and sauces in this market”. He also expects to grow in China through distribution expansion, household penetration, product innovation and acquisitions.
He also revealed plans to launch a new logo for the Chinese market that is “more international, fashionable and vivid using red white and blue”.
In Turkey, the company plans to launch a joint-branded range of spices with Ulker – the biggest food company in the country – using its Ducros brand this year.
