MCCORMICK & COMPANY 2004 ANNUAL REPORT growth initiatives  outlook  11 We are growing the consumer business by: Developing innovative products. As category leader it is our responsibility to bring news and excitement to the category. Consumers are seeking new products that offer convenience and great flavor. Increasing marketing effectiveness. Approximately 10% of each sales dollar is spent on trade promotions. We are meas- uring the effectiveness of our promotions to optimize sales. Through advertising we are driving consumer demand and have more than doubled our advertising since 1999. We are working to improve the appearance of our products in their home department and gain additional store placements to  build consumer awareness. Expanding distribution. We are adding customers in new geographic regions in Europe and the Asia/Pacific region. In more established markets we are achieving better penetration of products including our seafood complements, the Zatarain’s brand and dessert aids. Expanding through acquisitions. We will continue to acquire leading brands that take us into new markets, particularly in Europe. We will seek niche brands that fit well with our exist- ing product lines. To be successful, acquisitions must pass financial hurdles and include a well-constructed integration plan. For 2005, new products in the pipeline include both wet and dry flavors for grilling, seafood and salads. A relaunch for dry seasoning mixes with new packaging and merchandising is planned in the U.S. Advertising will be focused on value-added products that meet consumers’ demand for conven- ience and great taste. We will continue to expand our leadership position into new geographies. Sales growth and further progress with margin improvement initia- tives will continue to improve operating income margin for the consumer business. Interest in flavors continues to grow as consumers all over the world are exposed to different cuisines than their own. But food preparation must be quick and easy. McCormick is satis- fying this appetite for outstanding flavor and simple preparation with leading brands in key markets around the world. With the acquisition of Silvo at the end of 2004, we gained entry into the Dutch market with a 63% market share. With television advertising and a number of new  products, sales for our Vahine dessert aids brand in Europe grew 8% in 2004. In the U.K., new packaging  and merchandising of our Schwartz brand improves the appearance of the products and shopping experience for the consumer. During 2004, our team converted over 5,000 stores in only two months. McCormick is the #1 spice and seasoning brand among Hispanic consumers in the U.S. In 2004, we strengthened this leading position with new products, and in 2005, for the first time, will advertise on a major Hispanic  television network. Our growth initiatives are expected to drive 5% annual sales increases. The pace of growth may vary year to year due to acquisitions, foreign exchange and other factors.