HUNT VALLEY, MD. — Price increases and the acquisition of McCormick de Mexico buoyed McCormick & Co.’s performance during the third quarter of fiscal 2026.

“Total net sales grew 17%, in constant currency, and included 2% in organic growth … with the balance driven by acquisition contribution from McCormick de Mexico,” said Marcos Gabriel, chief financial officer, in prepared remarks released Oct. 1.

In the company’s Consumer business unit, sales rose 25% to $1.2 billion, with a 23% contribution from McCormick de Mexico and a 1% favorable impact from currency. Organic sales rose 1%, driven by a 2% increase from price that was offset by a 1% decline in volume.

In Flavor Solutions, sales rose 8% to $809 million and included a 4% contribution from McCormick de Mexico. Organic sales rose 3%, driven by a 2% increase in price and a 1% increase in volume.

“McCormick de Mexico delivered robust, volume-led quarterly growth, fueled by broad-based strength in the core mayonnaise and herbs and spices categories,” said Brendan Foley, president and chief executive officer.

He added that geopolitical volatility, high fuel costs and persistent inflation continue to influence consumer spending and that had an impact on the company during the quarter.

“In the US, higher gas prices and the cyclospora outbreak have added pressure and contributed to softer traffic across foodservice and grocery channels,” he said. “Consumers continue to look for practical ways to manage their budgets, including using what’s already in their pantry, repurposing leftovers, and seeking simple, affordable ways to add flavor at home.”

High fuel costs and persistent inflation continued to impact consumer spending during McCormick’s third quarter. | Source: ©RIX PIX – STOCK.ADOBE.COM

The pressure on the consumer showed up in the company’s bottom line. For the quarter ended Aug. 31, McCormick & Co. earned $97.6 million, equal to 36c per share on the common stock, and a decline when compared with the same period of the previous year when the company earned $226 million, or 84c per share.

Quarterly sales rose to $2 billion from $1.7 billion, primarily driven by the acquisition of McCormick de Mexico.

Gabriel said the company expects full-year organic growth to “reflect stable volumes and positive price contributions, primarily driven by (the) Flavor Solutions (business unit).”

Foley added that he expects Flavor Solutions to be impacted by pressures on some quick-service restaurant chains in the Americas and large consumer packaged goods (CPG) companies.

“At the same time, our customer innovation pipeline remains healthy, with opportunities across large CPG customers, private label, and high-growth innovators,” he said. “We are leveraging our R&D and product-development capabilities to help customers address evolving health and wellness preferences, premiumization, and demand for differentiated flavor experiences.”

Foley said looking ahead to 2027, he expects “status quo.”

“I think all of us would like healthier consumers, but we’re not relying on that as we think about our plans moving ahead,” he said. “We think about this environment is pretty much remaining.

“I think the consumer is really looking for even better value right now; it isn’t necessarily a lower price, consumers are still willing to pay for convenience (and) delivery. We see e-commerce growth growing for a reason because consumers find value in that.

“Overall, there are items where they’ll spend more per item because they’re getting just better value like in our large sizes. So, it’s a dynamics sort of environment, I would say, (and) we expect to continue to operate in this environment and continue to do well.”