The UK Competition and Markets Authority (CMA) has opened a Phase 1 invitation to comment on the proposed merger between McCormick and Unilever Foods. This step allows stakeholders to provide their perspectives on the potential competition implications of the deal. A formal investigation into the merger has not yet commenced at this stage.

The CMA's case page serves as the primary channel for interested parties to submit evidence and views. The authority will review the feedback received during this comment period to determine whether a deeper Phase 2 investigation is necessary. The outcome of this assessment will influence the regulatory path for the transaction.

Key Details of the Review

The invitation to comment is a standard preliminary procedure in UK merger assessments. It enables the CMA to identify potential competition concerns early in the process. No decision on the merger's approval or requirement for divestments has been made pending this review.

McCormick & Company, Incorporated reported financial results for the second quarter ended May 31, 2026, and reaffirmed its fiscal 2026 outlook. Net sales increased 16.7% to $1,936.6 million, driven by a 2.7% favorable impact from currency and acquisition contributions, while organic sales growth was 1.7%. Adjusted earnings per share rose to $0.80 from $0.69 in the prior year. The company continues to prioritize investments in key categories to sustain volume trends and drive long-term profitable growth, acknowledging uncertainties in the consumer and macro environment, including global trade policies and the Middle East conflict.

Second Quarter Performance

Gross profit for the quarter increased by $155 million to $778.2 million, with gross profit margin expanding 270 basis points to 40.2%. This expansion was supported by the McCormick de Mexico acquisition, pricing actions, and cost savings initiatives, partially offset by higher commodity costs. Operating income was $276.4 million, up from $246 million in the year-ago period. Excluding special charges, adjusted operating income increased 30% to $336.4 million.

Segment Results

Consumer segment net sales increased 22.8% to $1,143 million, with organic sales up 0.8%. Flavor Solutions segment net sales increased 8.9% to $794 million, with organic sales growth of 2.9%. Both segments benefited from accelerated momentum in Flavor Solutions and gains across Flavors and Branded Foodservice customers.

Fiscal 2026 Outlook

McCormick reaffirmed its fiscal 2026 outlook, projecting net sales growth of 13% to 17% and adjusted earnings per share of $3.05 to $3.13. The company expects foreign currency to favorably impact net sales, adjusted operating income, and adjusted earnings per share by approximately 1%. The outlook includes meaningful contributions from the McCormick de Mexico acquisition, which closed on January 2, 2026.

Outlook Expectations

Adjusted gross margin is expected to expand by 100 to 120 basis points from 2025, driven by organic sales growth, McCormick de Mexico accretion, and the company's Comprehensive Continuous Improvement (CCI) program. The benefit of the IEEPA tariff refund will be offset by increased inflationary costs, including those related to the Middle East conflict, and continued investments in business growth. SG&A expenses are impacted by cost headwinds such as digital transformation and incentive compensation build-back, alongside growth investments and streamlining initiatives.

Adjusted earnings per share growth is partially offset by a tax rate of approximately 24.0% compared to 21.5% in 2025, higher net interest expense primarily associated with the McCormick de Mexico transaction, and the elimination of the 25% minority interest in McCormick de Mexico Net Income attributable to Grupo Herdez following the consolidation of its financial results.