Australia markets open in 1 hour 14 minutes
  • ALL ORDS

    7,419.80
    +94.60 (+1.29%)
     
  • AUD/USD

    0.7838
    -0.0010 (-0.13%)
     
  • ASX 200

    7,172.80
    +92.00 (+1.30%)
     
  • OIL

    64.85
    -0.07 (-0.11%)
     
  • GOLD

    1,835.90
    -1.70 (-0.09%)
     
  • BTC-AUD

    71,082.38
    -3,445.30 (-4.62%)
     
  • CMC Crypto 200

    1,484.90
    -76.40 (-4.89%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

McCormick CEO: 'We've been hard-pressed to keep up with' Old Bay Seasoning demand

Brian Sozzi
·Editor-at-Large
·2-min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

McCormick's Old Bay Seasoning appears to be the continued flavor of choice for home chefs amid the COVID-19 pandemic.

"Oh my gosh, the demand for Old Bay has been extraordinary, and we've been hard-pressed to keep up with it. And even now, it's one of those items that we are still struggling with to keep in stock. The demand is just high for favorites like that," McCormick Chairman and CEO Lawrence Kurzius told Yahoo Finance Live

Kurzius said McCormick (MKC) is working hard to bring back supplies of products it decided to cut at the height of the pandemic in 2020, when it focused on getting its top-selling items such as Old Bay seasoning to grocery-hoarding customers.

"We hired 1,400 additional people mostly in our supply chain and we have added roughly the equivalent of an entire new factory by changing shift patterns and bringing in human resources. And so today, we are finally beyond the worst of the allocation time, and are rapidly closing in on the remaining 50% of all the items that we had on suspension. You should see that shelf position really accelerate," Kurzius explained.

SLUG:TR/CHESSTUFF  DATE:7/19/00 (MC)  PHOTOGRAPHER:Melissa Cannarozzi TWP  CAPTION INFO:Old Bay seasoning for a travel piece.   Original Filename: oldbay.jpg ORG XMIT: ; 511
Old Bay Seasoning has been a hot product for McCormick's. PHOTOGRAPHER: Melissa Cannarozzi

 

Despite people beginning to venture outside post vaccination, McCormick hasn't seen a drop off in business at its key consumer solutions segment. First quarter sales for the segment surged 35% from the prior year on the back of demand for spices, French’s mustard and Frank’s Red Hot sauce. 

"Demand from consumers has really been strong through the entire pandemic, and really still is," Kurzius said.

Meanwhile, the flavor solutions segment — which supplies products to restaurants — remained under pressure in the quarter. Sales for the segment only rose 4% from a year ago. 

For 2021, McCormick sees sales up 8% to 10%. Earnings are pegged at 5% to 7% growth from last year.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

What’s hot from Sozzi:

Watch Yahoo Finance’s live programming on Verizon FIOS channel 604, Apple TV, Amazon Fire TV, Roku, Samsung TV, Pluto TV, and YouTube. Online catch Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, and LinkedIn.