Background on Grupo Herdez and McCormick
Grupo Herdez, a Mexican food conglomerate, has seen its shares soar 31.36% on the Bolsa Mexicana de Valores (BMV), reaching an all-time high of 72.50 pesos per unit. The company owns popular brands such as Helados Nestlé, Barilla pastas, Doña María moles, canned tuna, vegetables, and sauces. Additionally, Grupo Herdez holds a 50% stake in McCormick de México, which produces condiments, spices, gelatins, mayonnaises, jams, mustards, and teas under the McCormick brand.
McCormick’s Divestment Strategy
As part of Grupo Herdez’s divestment strategy, the US-based food company McCormick & Company will increase its stake in McCormick de México from 50% to 75%, valuing the transaction at 750 million dollars. Grupo Herdez will retain a 25% share in the Mexican subsidiary.
Héctor Hernández-Pons Torres, president and CEO of Grupo Herdez: “This transaction will allow Grupo Herdez to continue participating in future growth opportunities while preserving our scale and market presence in Mexico.”
Market Analyst Perspective
Connor Rattigan, a consumer edge analyst, stated that McCormick’s decision reflects the sentiment of similar companies as they expand into emerging markets, driven by growing middle classes. However, he cautioned about consumer spending pressures in the United States.
Connor Rattigan: “It’s likely not the end of the company’s growth ambitions in the region.”
Performance and Future Prospects
Year-to-date, Grupo Herdez has gained 32.6% on the BMV, outperforming both the BMV and Biva reference indices (18.5% and 16.9%, respectively). The company expects this agreement to enhance shareholder returns, enabling Grupo Herdez to seek new strategic opportunities while restructuring its portfolio.
McCormick de México’s consolidated net revenues and EBITDA for Grupo Herdez over the last 12 months ending June 30, 2025, were 892 and 185 million dollars, respectively.
Other Recent Movements
This divestment is not Grupo Herdez’s only significant move recently. In April of this year, the company announced plans to separate its Grupo Nutrisa unit, a natural foods and yogurt ice cream brand. This separation could occur before the end of the third quarter.
Grupo Herdez proposed a stock dividend to its shareholders, which would lead to the division of its retail ice cream business. This strategy aims to operate both businesses independently.
McCormick de México Background
Founded in 1947, McCormick de México has been a key player in the condiments and sauces segment in Mexico, the second-largest economy in Latin America. The company offers a wide range of McCormick branded products.
Key Questions and Answers
- What is Grupo Herdez? Grupo Herdez is a Mexican food conglomerate that owns popular brands like Helados Nestlé, Barilla pastas, Doña María moles, canned tuna, vegetables, and sauces.
- Why did McCormick increase its stake in McCormick de México? McCormick increased its stake as part of Grupo Herdez’s divestment strategy, valuing the transaction at 750 million dollars.
- What are the expected benefits of this agreement for Grupo Herdez? The company expects improved returns for shareholders and the ability to seek new strategic opportunities while restructuring its portfolio.
- What other recent moves has Grupo Herdez made? Grupo Herdez announced plans to separate its Grupo Nutrisa unit, a natural foods and yogurt ice cream brand, which could occur before the end of the third quarter.
- What is McCormick de México’s background? Founded in 1947, McCormick de México is a significant player in the condiments and sauces segment in Mexico, offering a wide range of McCormick branded products.
