McCormick locating in county
McCormick & Company, a well-known manufacturer of spices, herbs and flavorings, has chosen Marshall County for its warehousing and distribution location.
The Maryland-based company has leased a 615,000-square-foot facility in Chickasaw Trail Industrial Park. It will be operational this summer, and the lease with a developer is for 10 years.
Forty-eight workers will be employed at the facility, which will allow McCormick to expand and improve service delivery to its customer base.
“The Marshall County Board of Supervisors and IDA worked closely with McCormick to ensure that Marshall County was the right location for their distribution facility,” said Justin Hall, executive director of the Marshall County Industrial Development Authority. “We’ve enjoyed working with the corporate office of McCormick and are excited about the employment opportunities this project brings to Marshall County.
“The company has been in business for well over a century and is a household brand in both U.S. and foreign markets. McCormick has been very pleased with the business friendly approach of the Marshall County Board of Supervisors, and recognizes the logistical benefits of locating in Marshall County. I think McCormick will thrive in Marshall County, and I’m very excited about the opportunities it will bring to Marshall County residents.”
Hall said the site represents a $32 million investment by the developers. McCormick is leasing the building, he said, and will spend $6 million to bring in their equipment and racking.
Scott Simmons, vice president of McCormick’s American supply chain, said in a media report the facility will allow the company to build its customer base and other capabilities for the future needs of the company.
The Mississippi Development Authority has provided incentives for McCormick to come to North Mississippi with its warehouse and distribution business. MDA is investing $346,000 to pay for sewer improvements and Marshall County will pay $34,600 as a match. Marshall County is also giving McCormick tax breaks for the next 10 years on the building and equipment that is valued at $9.2 million, or close to $1 million a year.
“I am pleased to welcome McCormick as the newest member of the state’s thriving warehousing and distribution industry,” Gov. Phil Bryant said. “The 48 jobs being created by the company will positively benefit the local community and economy for years to come.”
MDA Executive Director Glenn McCullough said, “In Marshall County, McCormick found the workforce, positive business climate and spec building location to be advantageous for their new operations. We salute the teamwork of the Marshall County Board of Supervisors and the Marshall County Industrial Development Authority for working effectively together to bring exciting new career opportunities to the people of North Mississippi.”
Mississippi competed with one other state for the project.
McCormick expects to begin operations in Marshall County in mid-2017.
Founded in 1889 as a door-to-door spice business by Willoughby M. McCormick, the company now operates globally with facilities in 50 locations in 26 countries.
The company did a $4.4 billion business in 2016.
Lorraine Mirabella, with The Baltimore Sun, said strong demand in China has helped offset sluggish sales in the United States and United Kingdom in the first quarter of this year.
Shares were up from 74 cents a share to 76 cents per share, up slightly from the previous quarter.
McCormick acquired Gourmet Garden, an Australian maker of packaged herbs in April 2016, Mirabella reported. And Cajun Injector, maker of injectable marinades and seasonings, was purchased by McCormick in September.
McCormick continued to post better growth than other spice peers in the first quarter, Mirabella said.
However, there has been a slowdown in sales in the center of the grocery store category, in general.
But the company is seeing better results in other channels, such as warehouse club stores, ethnic grocery stores and online, according to Mirabella. That is also true for sales to industrial customers, like those in the food service industry and manufacturers and certain quick service restaurants in Asia and the Pacific region as well as the Americas.
It is still taste that decides what consumers purchase, she said.