McCormick & Co. is set to invest $750 million to increase its stake in the U.S. group’s joint venture in Mexico with Grupo Herdez.
Originally established in 1947, McCormick de Mexico has now reached a pivotal moment. As of August 21st, Cholula sauces owner McCormick announced a deal to elevate its ownership from 50% to 75%.
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Brendan Foley, McCormick’s chairman, president, and CEO, emphasized that the company has enjoyed a “long and successful partnership with Grupo Herdez and we look forward to continuing our collaboration.”
He further asserted, “This marks the beginning of an exciting new chapter for McCormick in Mexico. With this expanded ownership, we will advance our global flavor leadership and enhance our presence in condiments and sauces.”
Currently, McCormick de Mexico generates approximately $810 million in annual net sales, excluding exports. Notably, the company specializes in mayonnaise products, including McCormick Mayonesa con Jugo de Limones, while also marketing other McCormick-branded items.
Looking ahead, McCormick anticipates the venture’s sales growth to fall within the “mid-single-digits range.” The company believes that majority ownership will open further expansion opportunities in Mexico, a high-growth emerging market. McCormick operates a factory in Cuautitlán de Romero Rubio, just north of Mexico City.
“Additionally, this transaction creates a strategic platform for scaling our operations and distribution across Latin America,” Foley added.
McCormick views Latin America as a key “growth accelerator.” In fact, during last year’s annual investor day, the company shared insights on its plans to further cultivate this “large, growing, and resilient market.”
Grupo Herdez, a publicly listed Mexican group, will support McCormick with its sales and distribution strategies.
In a separate statement, Grupo Herdez indicated that the sale of a portion of its shares in McCormick de Mexico would enable the company to “pursue other strategic opportunities while continuing its portfolio reconfiguration.”
Chairman and CEO Héctor Hernández-Pons Torres stated, “This transaction will allow Grupo Herdez to continue participating in future growth opportunities while preserving our scale and depth in the Mexican market.”
