US spice giant McCormick & Co. has bought a minority stake in Indian spice and seasoning business in Indian firm Eastern Condiments.
McCormick said today (29 June) that it had paid around US$35m for its 26% stake in Eastern Condiments.
The US group said the “partnership” between the two firms was “expected to lead to continued double-digit sales growth and further profitability for the Eastern brand”.
President and CEO Alan Wilson added: “This partnership is an important opportunity for McCormick to participate in the rapid growth of the India food market as consumers seek high-quality, more convenient packaged foods.”
Eastern, which generated sales of $67m in the year to the end of March, is one of India’s few “national” spice brands, McCormick said.
The company said teaming up with McCormick would it help expand further outside India. The business already exports to 15 markets.
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“[McCormick’s] global presence will accelerate our efforts to bring authentic products to Indian consumers in international locations as well as introduce other consumers to Indian cuisine,” said Eastern chairman M.E. Meeran.