MKC · CIK 63754
What McCormick & Company, Incorporated told the SEC could break it.
McCormick's risks track the agricultural inputs and ingredient regulation behind its spices and flavors. Its most significant raw materials — dairy, pepper, garlic, onion, paprika, salt, tomato products, sugar and soybean oil — are subject to weather- and harvest-driven price volatility, and tariffs added to those commodity costs, contributing to a 60-basis-point gross-margin decline (to 37.9%) in 2025. Its flavor-and-color portfolio also faces regulatory pressure: the FDA's April 2025 call to phase out petroleum-based synthetic dyes and the Make America Healthy Again Commission's scrutiny of food ingredients create reformulation and compliance risk.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Regulatory & policy
- US tariffs (raw-material cost / gross-margin impact)medium
Tariffs raised commodity costs and contributed to a 60bp gross-margin decline (to 37.9%) in 2025; McCormick also flags legal challenges to US tariffs as a supply-chain uncertainty.
“Our gross profit margin was 37.9%, a decrease of 60 basis points, driven by increased commodity costs including the impact of tariffs, unfavorable product mix, and increased conversion cost including costs to support capacity for future growth, partially offset by pricing actions and CCI program-led cost savings.”
- FDA synthetic-dye phase-out / MAHA food-ingredient scrutinymedium
FDA's April 2025 call to phase out petroleum-based synthetic dyes and the MAHA Commission's food-ingredient scrutiny create reformulation and regulatory risk for McCormick's colors/flavors portfolio.
“In April 2025, the Food and Drug Administration (FDA) called on the industry to phase out all “petroleum-based synthetic dyes” from the nation's food supply, and in May 2025, the Make America Healthy Again (MAHA) Commission published an assessment report discussing factors contributing to chronic childhood disease including diet, environmental exposure, lack of physical activity and healthcare.”
SEC filing →As of 2026
Commodity & input dependence
- agricultural raw materials (dairy, pepper, garlic, onion, capsicums, salt, tomato, sugar, soybean oil)medium
McCormick's most significant 2025 raw materials — dairy, pepper, garlic, onion, capsicums (red peppers/paprika), salt, tomato products, sugar and soybean oil — are subject to price volatility from weather, growing/harvest conditions and government actions.
“In 2025, our most significant raw materials were dairy products, pepper, garlic, onion, capsicums (red peppers and paprika), salt, tomato products, sugar, and soybean oil.”
SEC filing →As of 2026
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
“Sales to one of our Flavor Solutions segment customers, PepsiCo, Inc., accounted for consolidated sales of approximately 12% in 2025, and 13% in both 2024 and 2023.”
Cited →“Sales to one of our Consumer segment customers, Wal-Mart Stores, Inc., accounted for consolidated sales of approximately 12% in 2025, 2024, and 2023.”
Cited →
Its suppliers
Grupo Herdez, S.A.B. de C.V.
“On January 2, 2026, we acquired an additional 25 % ownership interest in McCormick de Mexico from Grupo Herdez, for a purchase price of $ 750 million, which increases our ownership to a 75 % controlling interest.”
Cited →
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