After a String of Acquisitions, This Food Giant Is Feeling the Sting of Higher Interest Rates
Brands drive performance at the biggest consumer staples companies. Although (NYSE: MKC) is a bit unique in the food space because of its focus on spices, it has been increasingly building out its brand portfolio to fuel growth. But there's a cost to such efforts, and the company is now dealing with the earnings headwinds caused by its recent acquisition spree.
Most consumers probably know McCormick as the dominant brand name in the spice aisle of the grocery store. While it also has a business selling spices to food makers and other business entities, the main focus has long been ingredients. That started to change in a big way in 2017 when the consumer staples giant agreed to buy the French's mustard business for $4.2 billion. The acquisition also included Frank's RedHot Sauce.
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Source Fool.com
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