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## McCormick’s consumer business markets seasoning blends, spices, herbs, extracts, sauces, marinades and specialty foods. Our customers span a broad range of retail outlets and include grocery, drug, mass merchandise and dollar stores. 

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## 2004 financial results 

Net sales rose 15% in 2004. Volume, price and product mix increased 11%. The 2003 acquisition of Zatarain’s was incre- mental to the first six months of the year and added 4% of the 11% growth rate. Favorable foreign exchange added another 4%. In the Americas, sales were particularly strong as a result of new products, effective marketing, pricing actions and distri- bution expansion. In Europe, sales success with new products was tempered by a more competitive situation. 

Operating income rose 17%. The sales increase and initia- tives to improve margins helped to offset cost pressures that included vanilla, fuel and employee benefits. The higher cost of vanilla was also offset by higher pricing. During 2004, we increased advertising 43%. As a percent of net sales, operating income reached 20.1%, as compared to 19.9% in 2003. 

## market position 

Consumers want to add flavor to their foods – bold and zesty, kid-friendly and fun, ethnic and exotic. But preparation must be easy. A recent Food Market Institute report stated, “Consumers continue to be time-pressed and are looking for solutions to cut the time spent in meal preparation.” 

As category leader , McCormick is meeting 

these needs through initiatives such as new products, better 

This magazine advertisement features Joe Montana, McCormick’ s first major celebrity spokesperson. Joe promotes the GrillMates line of products. Worldwide, we increased 2004 sales of grilling seasonings, marinades, sauces and rubs 8%. 

