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merchandising, effective marketing and a dynamic website. 

Our actions are driving category growth in many key markets. In 2004, the spice and seasoning category rose 2% in the U.S., 5% in Canada and 1% in the U.K. A tough competitive situation in France, however, led to a 1% category decline in 2004. 

With both brand and private label products, we enjoy a leading share in our largest markets. In the U.S. and the U.K. our share has increased to nearly 50%, and in France and Canada our share exceeds 50%. We also have a leading share in China and a strong presence in additional markets in Europe and Asia. 

As a result of marketing initiatives and expanded distribu- tion we continue to gain market share. In 2004, we added 1.4 percentage points to our U.S. market share of branded spices and seasonings. 

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Jeff Carter Product Development Manager, U.S. Consumer Products Division 

” It’s not your old-fash- ioned pickling ingredient. McCormick pickling spice is a versatile blend of spices and herbs that has many comfort food applica- tions. Slow cookers are coming back. Try pickling spice with popular slow cooker recipes such as corned beef & cabbage, sauerbraten beefor german style pot roast. An old favorite, McCormick pickling spice, can be a great addition to today’s meals. ” 

Our unique grinder top adds fresh taste right at the table. With the introduction of new flavors and the addition of new markets, worldwide sales of grinders grew by 36% in 2004. 

## 2004 highlights 

> In the Netherlands, acquired the Silvo business, gaining entry into the Dutch market with a 63% market share. 

> Launched new products in the last 3 years that accounted for 6% of 2004 sales. 

> In the U.S., increased sales of the Zatarain’s brand 20% with expanded product penetration and new items. 

> In the U.S., significantly increased the effectiveness of trade promotions. This was one of the key factors in a 17% sales increase in the Americas. 

> In China, substantially improved our distributor network and streamlined our business to 75 well-qualified distributors. This was a reduction from 250 distributors in the network in 2003. 

> Worldwide, grew sales of grinders by 36%. This innovative package originated in France, under the Ducros label. 

> Increased sales of our grilling products, including seasonings, marinade blends and sauces, 8% worldwide. Rubs are featured in the new product line up for 2005. 

> In the U.S., strengthened a leading position with Hispanic consumers with new products and a focused expansion into Texas and Chicago markets. In 2005, for the first time, McCormick will advertise on Hispanic networks. 

> In the U.K., converted more than 5,000 stores to new pack- aging and merchandising of the Schwartz brand spices and herbs in only two months. With this change, we have signifi- cantly reduced the variety of packaging formats in Europe. 

> Throughout Europe, achieved 8% growth of dessert aids with new products and new distribution. 

