McCormick Achieves Strong Sales Growth and Margin Expansion in Q3 2026
McCormick, the global leader in flavor-centric business model, has reported strong sales growth and margin expansion in its third quarter of 2026. According to the company's earnings call transcript on October 1st, McCormick delivered a 17% increase in total sales in constant currency, driven by the acquisition contribution from McCormick de Mexico and organic sales growth of 2%. The company also reported improved volume trends in global consumer, reflecting continued momentum in EMEA (Europe, Middle East, and Africa) and Asia Pacific regions.
In a dynamic environment, McCormick's flavor-centric business model has demonstrated resilience, delivering strong sales growth, margin expansion, and increased earnings. The company's productivity initiatives and operational discipline have helped manage higher input, freight, and other inflationary costs while expanding margins. This strengthens the company's capacity to continue investing in its brands, innovation, and capabilities, reinforcing sustainable growth and long-term value creation.
According to Brendan Foley, Chairman, President, and CEO of McCormick, the company's fundamentals remain strong, supported by year-to-date results, advantage categories, and disciplined execution. The company is confident in its ability to deliver on its 2026 outlook and remains confident in the strategic benefits of the proposed combination with Unilever Foods. Integration planning is on track, and the company continues to advance the work required to support a successful close and a strong transition.
In the global consumer segment, volume trends improved relative to the second quarter, reflecting continued momentum in EMEA and Asia Pacific regions, and early benefits in the Americas from targeted actions. While U.S. category consumption is soft in select areas, McCormick's actions, including revenue growth management, value marketing, and innovation, alongside expanded distribution, are driving improvement.
McCormick's Global Flavor Solutions business also reported strong organic growth, reflecting pricing and volume growth. However, softer demand from CPG (Consumer Packaged Goods) and QSR (Quick Service Restaurant) customers weighed on volume performance. The Cyclospora outbreak in the U.S. impacted QSRs, while lower QSR foot traffic also pressured volumes in EMEA.
Despite these challenges, McCormick delivered strong profit growth this quarter, supported by margin expansion and productivity initiatives, enabling continued investment in long-term growth priorities. The company highlighted several key areas of success, including unit or volume share gains in herbs, spices, and seasonings categories, particularly in Canada, France, Poland, and China.
In the U.S., McCormick saw improving dollar and unit consumption trends in select categories, driven by enhanced distribution and promotional execution during the grilling season. In recipe mixes in the UK and Australia, the company drove unit and dollar share gains for the last three quarters, supported by expanded distribution and new customer wins.
In hot sauce, McCormick continues to strengthen its position across key markets, delivering dollar and unit share gains for the fourth consecutive quarter, led by Cholula's expanded distribution, continued base business momentum, and increased household penetration.
