Media that empowers working people – that's how we build a More Perfect Union.

Don't Miss a Video!

Access our exclusive reporting and rapid response actions directly in your inbox, so you don’t miss a beat in the fight for working people nationwide.

Be a part of a community backing up independent journalism with action.

Ideas

Have a story to tell or idea to share?
Email stories@perfectunion.us
© 2021 More Perfect Union Action

Together we can build power for working people.

We’re asking questions that really matter, and telling the stories of people who really need to be seen and heard.

You can support our work by donating today.

Amount

Make It Monthly

Don't Miss a Video!

Access our exclusive reporting and rapid response actions directly in your inbox, so you don’t miss a beat in the fight for working people nationwide.

Be a part of a community backing up independent journalism with action.

The Largest U.S. Spice Company Is Raising Prices in America – But Not China

America’s concentrated markets strike again.

Cholula

McCormick & Co., the world’s largest spice and seasoning company, is looking to recover losses from inflation by raising prices for American consumers, but not Chinese. If you ask CEO Lawrence Kurzius it’s because of “market conditions.”

“Market conditions in China have also allowed very little opportunity to increase prices,” Kurzius told investors earlier in the summer. However, that’s not the case for American consumers. The Maryland-based spice giant is a dominant force in both consumer spices and industrial ingredients. It has already raised prices multiple times in America and is planning additional increases in the back half of 2022. Management expects “pricing actions and other levers to begin to outpace cost pressures late in the third quarter.” 

McCormick has tremendous market power in America

  • The company owns an estimated 20% of the global spices and seasoning market. That’s four times the nearest competitor. 
  • At 60% of total sales, America makes up a significant portion of McCormick’s portfolio.
  • If you’ve purchased spices in America, you’ve bought them from McCormick. It essentially rules both the high and low-end of the spice and seasoning market. Major spice and seasoning brands include McCormick and Lawry’s. It is also the largest producer of store brand seasonings in America.
  • The company also captured one third of the US hot sauce market. It recently spent $5 billion to acquire Cholula and Frank’s RedHot (French’s mustard was also included in the deal).

McCormick has significantly less market power in China

McCormick has a history of abusing its market power

  • McCormick has announced at least two American list price increases in the COVID-19 era, in addition to pulling back promotional spending.
  • In 2000, management settled charges with the FTC that it engaged in anti-competitive practices. The FTC alleged that the company offered price discounts to American retailers in exchange for shelf space. In some cases, the federal government estimated that the scheme resulted in McCormick receiving 90% of available shelf space from retailers. Lack of competition is often credited with higher consumer prices.

Related Stories

There’s a Price Gouging Smoking Gun In Tyson’s Earnings Report
Read More
Diapers
Why Are Diaper Prices Up 184 Percent? Two Corporations Are Preying On Parents
Read More

The Latest

YouTube Thumbnail
These Pizza Workers Want to Unionize The Whole Restaurant Industry
Read More
Sinema
Sinema More Than Doubled Private Equity Fundraising Before Killing Carried Interest Provision
Read More
Amazon heat
Photos Reveal Amazon Workers In Scorching 145° Trailers
Read More
YouTube Thumbnail
Strokes, Head Injuries & Heat Exhaustion: Why Amazon Workers In Albany Are Unionizing
Read More
Here Are The Next States That Want To Follow Kansas’ Lead In Winning Abortion Ballot Measures
Read More
United Airlines
Despite Record Revenue, Airlines Set to Slash Flights to Smaller Cities
Read More
Google
Major Corporations Have Donated Over $6 Million to Anti-Abortion Groups, Despite Promises to Defend Access
Read More
YouTube Thumbnail
U.S. Rail Workers Could Strike And Shut Down The Economy
Read More
YouTube Thumbnail
Inflation Is Making CEOs Richer
Read More
Amazon insider
Here’s How Amazon Is Strangling Small Businesses 
Read More
YouTube Thumbnail
Abortion Is On The Ballot In Kansas
Read More
YouTube Thumbnail
Commercial Production Workers Are Unionizing
Read More
Medical Debt
A Measure to Crack Down on Predatory Medical Debt Collection is on the Verge of Making the Ballot in Arizona
Read More
Jennifer Rourke
Democratic Leaders Helped a Blackface-Wearing Conservative Run Against a Progressive Black Woman In Rhode Island
Read More
AT&T and Verizon Raised Prices in Lockstep, Looking To Make Billions
Read More
YouTube Thumbnail
Why GameStop Workers Hate Their Jobs
Read More
YouTube Thumbnail
How Elon Musk Got Rich: The $230 Billion Myth
Read More
YouTube Thumbnail
The Former Uber Driver Taking On the ‘Joe Manchin of New York’
Read More
Cholula
The Largest U.S. Spice Company Is Raising Prices in America – But Not China
Read More
YouTube Thumbnail
Why The Flight Cancellation Crisis Is About To Get Worse
Read More