Americans won’t tolerate bland food anymore — and it’s turned McCormick into a ~$7 billion-a-year spice and sauce giant

Whether it’s salty, sweet, umami, spicy, or sour, Americans have come to expect their food to punch its way through their palate, the result of a decades-long trend that’s seen more humble “meat and potatoes”-style meals replaced by exciting flavors borrowed from other cuisines. Even if it is meat and potatoes on the menu now, there’s a decent chance you’ll be having it doused in hot sauce, as our collective love for mouth-tingling condiments has grown.

Hot property

McCormick has been a key component in that flavor revolution through the years. After starting as a spice-selling business based out of a cellar in 1889, the company has now been recognized by Euromonitor as both the world’s top hot sauce company and the leading name in herbs and spices, thanks to its vast pantry of global brands. In recent years, McCormick has leaned into acquisitions to add bold flavors to its portfolio — like Frank’s RedHot and French’s Mustard in 2017 and the popular Cholula Hot Sauce in 2020 — helping the business boom to nearly $7 billion a year in sales.

Now, the company is looking to take a bite out of a behemoth in the space to power its next leg of growth.

Tastemakers

Earlier this month, British mega-conglomerate Unilever confirmed that it had received an offer from McCormick for its food business, which houses mayonnaise maker Hellmann’s, Knorr, and Marmite, and announced that it had entered deal talks with the American company, while noting that “there can be no certainty that any transaction will be agreed.”

Deal discussions between the two are progressing quickly, per sources cited by Reuters, and McCormick seems to be sweetening the deal as the smaller of the two businesses, with Unilever shareholders reportedly set to take more than 50% of the new combined company.