Latest news with #BrendanFoley
Yahoo
10-07-2025
- Business
- Yahoo
McCormick aims to ‘derisk' ERP implementation
This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. McCormick is trying to sidestep some of the difficulties that accompany major technology overhauls amid an ongoing ERP upgrade, executives said during the food company's Q2 2025 earnings call in June. CEO, President and Chairman Brendan Foley told investors that the company has pivoted its ERP implementation plan to 'derisk' the process by moving away from a 'big bang' to a functional deployment approach. The shift will add time to the rollout, but smooths out investment periods, he said. 'You should not see a peak of investments regarding the ERP implementation going into next year,' Foley said. 'We'll continue to invest in digital, in AI and things like that, but specifically for the ERP, you should not see an increase in spend.' ERP implementations are an IT headache due to the complexity, the time it takes to complete and the difficulty of getting user buy-in. McCormick and many other companies are taking the plunge as migration deadlines loom and after years of relying on legacy systems. Hershey, Mondelēz International and Lamb Weston have all worked on ERP overhauls in recent months. Outside the food aisles, household brands such as Clorox and retailers including Ulta Beauty have embarked on similar upgrade missions. ERP upgrades often bring some type of disruption, whether it's inflated technology spending or visibility gaps as new systems are turned on and old systems are sunset. In its 2023 annual report, McCormick said its ERP focus will concentrate on U.S. operations through 2027. McCormick expected associated operating expenses of $35 million to $50 million annually throughout the period. The food manufacturing giant acknowledged the ongoing work but did not give an ERP update in its 2024 report. As the company has continued its focus on tech, including AI, it has brought in a new executive to helm the efforts. Chief Information and Digital Officer Guy Peri joined the company in November after holding various leadership positions at Procter & Gamble. 'Guy joins McCormick with almost 30 years of experience leading digital strategy in service to consumers, customers and employees,' the company said in a LinkedIn post. 'His expertise encompasses application of data, AI, cloud, information security, and enterprise transformation programs to drive outcomes and transform businesses.' Recommended Reading Enterprises take an analytics-based approach to daily operations Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
08-07-2025
- Business
- Miami Herald
The most popular cooking ingredient is about to get a lot more expensive
Even if you barely cook at home, there's a good chance you have some basic herbs and spices in your cupboard. Black pepper, cinnamon, cumin, garlic powder, onion powder, and oregano are among the most popular. Many of them are probably imported. Around 85% of the food we eat in the U.S. is grown here, according to the U.S. Department of Agriculture, but that's not the case with spices. The reason? Climate or land limitations. Don't miss the move: Subscribe to TheStreet's free daily newsletter As soon as August 1 (that's the latest date, anyway), tariffs on goods imported from countries like Indonesia and Vietnam are expected to rise significantly - as much as 40% in some cases - and those costs will be passed on to consumers. Tariffs will raise effective rates to historic highs since the early 1900s, and economists estimate they'll nudge up consumer prices by around 1.7% in the short run. That means with food costs could climb another 2.3%, according to the Yale Budget Lab, the nonpartisan policy research group that provides analysis of federal policy proposals, focusing on their financial, economic, and distributional impacts. Last week (July 2, 2025), McCormick - the world's leading spice company - issued a harsh reminder: U.S. tariffs on imported agricultural products could cost the company up to $90 million per year. On an earnings call, McCormick's Brendan Foley and CFO Marcos Gabriel explained that critical ingredients like black pepper, cinnamon, and vanilla aren't grown in America and now face sweeping duties starting July 9, hitting countries without free-trade agreements. While McCormick is working to shift sourcing to alternative regions and is relying on analytics to manage costs, Gabriel made it clear that some spices simply cannot be substituted domestically. Related: Trader Joe's steals a page from Starbucks' playbook The company says it will pass some of these added costs to consumers via selective price hikes in Q4. With McCormick offering over 17,000 ingredients across 90 markets, the ripple effects could be far-reaching, especially as shoppers increasingly seek exotic flavors like yuzu, lychee, or Peru's trendy Aji Amarillo pepper. The American Spice Trade Association underscores the problem, noting that most spices "cannot be grown in America in quantities sufficient for commercial use." McCormick will either have to absorb the costs or raise prices, squeezing supermarkets and home cooks. These spice-focused tariffs are just part of a broader wave. In 2025, the U.S. slashed tariff exemptions for goods from countries without trade deals, triggering broad hikes across categories from steel to food. Analysts say that tariffs could lift grocery costs by more than 2% in the short term, with fresh produce jumping over 5%, potentially adding up to $4,900 per household annually, though cautious consumers might reduce that increase to about $2,600, according to the Yale Budget Lab. Related: One of America's oldest breweries may really be shut down forever Recent inflation data reflect this pressure: U.S. consumer price growth reached 2.4% in May, with much of the rise stemming from groceries and imported goods - fueling expectations for continued food-price inflation. In the midst of all this, food manufacturers are petitioning the White House for exemptions on key ingredients - hoping to shield consumers from steeper pantry prices. But unless some relief is granted, shoppers should prepare for more expensive meal staples - spices, produce, dairy, canned items, even tomatoes - to drive up household grocery bills. And with low-income families spending more of their income on food, the burden will be felt most keenly at the bottom of the economic ladder. McCormick is sounding the alarm on spice costs, just as tariff-driven inflation begins tightening its grasp on the grocery aisles. Whether consumers face higher checkout totals may depend on how many ingredient exemptions the industry can secure. Related: Iconic burger chain menu adds new permanent item The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
29-06-2025
- Business
- Yahoo
McCormick & Company, Incorporated (MKC) Is Playing Well With Weight Loss Drugs, Says Jim Cramer
McCormick & Company, Incorporated (NYSE:MKC) is one of the . McCormick & Company, Incorporated (NYSE:MKC) is one of America's largest spice companies. While food stocks have faced a bloodbath in 2025 as inflation and GLP-1 drugs cut into their revenue, McCormick & Company, Incorporated (NYSE:MKC)'s shares have fared well as they are flat year-to-date. McCormick & Company, Incorporated (NYSE:MKC)'s stock jumped by 5% in June after the firm's fiscal Q2 earnings of $0.69 beat analyst estimates of $0.66 and its revenue met the estimates. The low-end of its full year earnings guidance of $3.03 per share also beat estimates of $3.02. Cramer explained that the results saw food investors rush to a stock they thought could do well: 'Okay, McKornick is up four dollars. Now Brendan Foley runs the company, it's not MCK, it's MKC. Now here's what important about this. I haven't seen a food company guide up and they did. Why? Okay, spices are not anything that has to do with GLP-1, they don't put weight, they don't put weight. So think about this, mustard doesn't put weight. It's one of the few foods that doesn't. Spices, way to be able to make something better, not fattening. They are fitting with the GLP-1 zeitgeist. And that's why the stock is up three. A close-up of spices, herbs and seasoning mixes in a colorful array, highlighting the company's range of products. Cramer discussed McCormick & Company, Incorporated (NYSE:MKC) in detail in March. Here is what he said: 'And I just wanted to defend McKormick for a second, now they do have two percent volume growth. It's not bad. They do have some currency that really knocked things down. People are not factoring it. If you factored in the currency which was bigger than they thought, it's actually in-line. But what I like about McKormick best, is that people are, when people are . . .and don't want to go out to expensive restaurants, they cook. And when you cook, you use spice. . .And McCormick is a spice company, and I think they're gonna do very well if things get, uh, let's say tougher in the country. Because do it yourself does well. And cooking does well. And McCormick will do well.' 'And I'm just saying, don't give up on it. Because, if you think that we're having a slowdown, people are going to cook at home. You were gonna wish you were in it.' While we acknowledge the potential of MKC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-06-2025
- Business
- Yahoo
McCormick & Company, Incorporated (MKC) Is Playing Well With Weight Loss Drugs, Says Jim Cramer
McCormick & Company, Incorporated (NYSE:MKC) is one of the . McCormick & Company, Incorporated (NYSE:MKC) is one of America's largest spice companies. While food stocks have faced a bloodbath in 2025 as inflation and GLP-1 drugs cut into their revenue, McCormick & Company, Incorporated (NYSE:MKC)'s shares have fared well as they are flat year-to-date. McCormick & Company, Incorporated (NYSE:MKC)'s stock jumped by 5% in June after the firm's fiscal Q2 earnings of $0.69 beat analyst estimates of $0.66 and its revenue met the estimates. The low-end of its full year earnings guidance of $3.03 per share also beat estimates of $3.02. Cramer explained that the results saw food investors rush to a stock they thought could do well: 'Okay, McKornick is up four dollars. Now Brendan Foley runs the company, it's not MCK, it's MKC. Now here's what important about this. I haven't seen a food company guide up and they did. Why? Okay, spices are not anything that has to do with GLP-1, they don't put weight, they don't put weight. So think about this, mustard doesn't put weight. It's one of the few foods that doesn't. Spices, way to be able to make something better, not fattening. They are fitting with the GLP-1 zeitgeist. And that's why the stock is up three. A close-up of spices, herbs and seasoning mixes in a colorful array, highlighting the company's range of products. Cramer discussed McCormick & Company, Incorporated (NYSE:MKC) in detail in March. Here is what he said: 'And I just wanted to defend McKormick for a second, now they do have two percent volume growth. It's not bad. They do have some currency that really knocked things down. People are not factoring it. If you factored in the currency which was bigger than they thought, it's actually in-line. But what I like about McKormick best, is that people are, when people are . . .and don't want to go out to expensive restaurants, they cook. And when you cook, you use spice. . .And McCormick is a spice company, and I think they're gonna do very well if things get, uh, let's say tougher in the country. Because do it yourself does well. And cooking does well. And McCormick will do well.' 'And I'm just saying, don't give up on it. Because, if you think that we're having a slowdown, people are going to cook at home. You were gonna wish you were in it.' While we acknowledge the potential of MKC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Miami Herald
29-06-2025
- Business
- Miami Herald
McCormick CEO warns about harsh decision amid tariff threats
Imagine cooking a meal without seasonings and forcing yourself to eat plain foods to survive because purchasing condiments has become too expensive. Not only would this rob us of the enjoyment of eating, but it would also prevent us from trying new flavors from other cultures. Don't miss the move: Subscribe to TheStreet's free daily newsletter After taking office for a second term, President Donald Trump implemented new tariffs on foreign-made imports in April, including an additional 10% baseline tariff. This has resulted in ongoing negotiations between foreign countries and the U.S., temporarily pausing increased tariffs on imported goods. Related: When you'll see empty retail store shelves due to tariffs However, the clock is ticking, and the 90-day suspension of baseline tariffs expires on July 9. Although some countries have reached agreements, others have yet to come to a mutual understanding. This threatens the supply chain of many products, which may lead to price increases. Companies have been strategizing and reorganizing their businesses, hoping to soften or prevent the potential blow tariffs might have on their finances. However, many remain concerned about negative financial repercussions, especially in sectors highly dependent on imported goods. Related: This might deliver the economy news people want to hear McCormick & Company (MKC) is a leading manufacturer, marketer, and distributor of spices, seasoning mixes, condiments, and extracts worldwide. After 136 years in business, the company has grown a portfolio of around 17,000 materials from over 90 countries. Although an American company, McCormick depends on foreign goods. Many of its products are not commercially available in the U.S. due to factors such as geographic location and climate. The new tariffs have hit the decades-old business like a train, leading McCormick to reveal plans that American consumers had been dreading. McCormick said it will raise prices during the fourth fiscal quarter of 2025, as the costs of certain products will be higher than expected. "Our total gross annualized tariff exposure is approximately $90,000,000 and in terms of 2025 in year exposure, it's about $50,000,000," said McCormick CEO Brendan Foley in the company's latest earnings call. More Retail News: Popular grocery store chain resumes store openings after 3-year hiatusHershey adds new products to move beyond chocolateBankrupt retail chain makes major comeback, reopens new stores However, the company will continue to look for lower-cost sourcing alternatives to keep up with demand and mitigate the tariff effects. McCormick understands that price hikes could decrease sales, as it would prompt consumers to seek cheaper options. "We are collaborating with our customers to implement surgical and strategic pricing, while also maintaining our volume momentum," said Foley. "Overall, our manufacturing location strategy, resilient supply chain, global sourcing capabilities, collaborative efforts across the organization and the strength of our brands continue to be a competitive advantage, enabling us to mitigate our costs and maintain our business momentum." Although McCormick has focused on decreasing its reliance on any one geographic area, Foley still warned that many products cannot be substituted because they aren't produced or available in the U.S. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
