Jefferies Comments on Strategy at McCormick & Co

Jefferies has published a report on McCormick & Co MKC commenting broadly on strategic changes at the spice merchant. In the report, Jefferies wrote, "MKC is asserting its dominant position in spices and seasonings this summer. In the latest 12 week period in tracked channels MKC stopped its market share losses by becoming more promotional (we assume around the grilling theme and emphasizing the value of its products) and slowing down its y-o-y price growth. Based on similar previous episodes, we are not concerned about a slowdown in profit growth and we do not believe that MKC will overall increase its promotional spending in FY11. Instead, the company seems to focus on different themes compared to previous years, which drives the shift in promotional activity. As we have heard concerns about MKC's domestic weakness in the face of private label competition we believe that this issue should become less pressing." Jefferies rated McCormick & Co a BUY with a price target of $57.00. McCormick & Co closed Monday at $50.06.