McCormick tackles $50M tariff hit through pricing, other measures

Core Insights - McCormick has faced challenges from tariffs since April 2025, impacting costs significantly [3][4] - The company managed to reduce tariff impacts from $70 million to $20 million through cost-cutting, alternative sourcing, and price increases [4] - McCormick anticipates a similar mid-single-digit inflation rate for the current year due to tariffs and commodity costs [4] Tariff Impact and Mitigation Strategies - The incremental gross tariff impact for McCormick is expected to be around $50 million in 2026, with plans to mitigate this through productivity savings, alternative sourcing, and revenue management strategies [8] - The company has already adjusted its supply chain efforts to align with new tariff rates, which may limit immediate benefits from reduced tariffs [5] - Other companies in the industry, such as J.M. Smucker and Monster Beverage, are also managing tariff-related costs through various strategies [6]