HUNT VALLEY, MD. — Even with its broad portfolio of sauces, spices, seasonings and condiments, McCormick & Co.’s management team sees gaps in the company’s portfolio and is seeking to close them through innovation and mergers and acquisitions.

To capitalize on innovation, the company has created an innovation plan called “more and faster,” said Andrew Foust, president of the Americas, during the company’s Oct. 22 investor day presentation.

“As we move forward, we will continue to launch the highest share of category innovation,” he said. “Here's how we're going to do it. One, we’re launching items in half the time that it is historically taken. We’re getting trends to shelf faster through our first and flavor program.”

Potential innovations are being tested through e-commerce on the company’s direct-to-consumer website.

“This gives us real time data as consumers vote with their wallets,” Foust said. “To give you a recent innovation success, almost a month ago, we launched finishing sugars on mccormick.com. In 24 hours, we garnered 1 billion impressions, and it sold out completely online.”

For this holiday season, the company has developed a line of finishing sugars that are being sold at retail.

“It's already sold two times our forecast,” Foust said. “Actually, we’re so thrilled of it. We’re going to launch two waves next year, one for the fall and one for the holiday and we love that it extends McCormick into beverage, crafts and sweets, where we don’t have a lot of presence today.”

Packaging also is being used as a point of differentiation to stand out on the shelf. Next year Grill Mates will feature an updated look with clear labels that allow consumers to see the product. The company also will be introducing McCormick Gourmet, a spice line being positioned as premium.

“… We’re bringing this to life through a new vibrant gold cap that seals in the freshness, a more modern look and feel, and quality claims that highlights we only use the absolute best raw materials,” Foust said. “This renovation drives a 14% increase in purchase interest and consumers are proud to display it anywhere in their kitchen.”

This past March, the company introduced Frank’s RedHot in squeezable bottles. Initial results of the launch are strong, said Ana Sanchez, president of Europe, the Middle East and Africa, and “exceeding our expectations on distribution and repeat.”

The company also is seeking to close a gap in its portfolio with the launch of Cholula Extra Hot sauce.

“It will drive incrementality and distribution and give consumers more of what they want — more heat,” Sanchez said.

With mergers and acquisitions, management’s expectation is they will contribute to a third of the company’s growth. Kasey Jenkins, chief growth officer, did not go into specifics about current targets, but did provide color about what the company is looking for.

“An acquisition must fit our strategic vision of being a leading flavor company,” she said. “We want a flavor asset that benefits from the strength of our portfolio across both of our segments. It is not just about creating value in one segment. The complementary nature of our segments is important and a significant factor in acquisitions as well.

“A strong brand can span at home and away from home channels or it could be co-branded with one of the products of a flavor customer. And a business that advances our leadership in global flavors can give us new innovation capabilities in our consumer segment.”

Marcos Gabriel, chief financial officer, reaffirmed McCormick’s long-term financial objectives of net sales of 4% to 6%, operating income of 7% to 9% and earnings per share in the range of 9% to 11%.