How much longer can consumer packaged goods (CPG) companies continue to drive higher profits through higher prices? The recent quarterly results of spice maker McCormick seem to show that the trend is still going strong, but the aggregate view masks some underlying trends. Overall, McCormick’s price increases continue to drive higher gross margins, but performance varies by segment and category. In their analyst call, the McCormick executive team emphasized the company will “continue to take a surgical approach to managing our price gaps to private label and branded competitors.” The company also anticipates a “return to differentiated and sustainable volume-led growth.”
McCormick & Company, Incorporated (MKC) Q1 2024 Earnings Call Transcript