MCCORMICK & COMPANY 2004 ANNUAL REPORT Jeff Carter Product Development Manager, U.S. Consumer Products Division ” It’s not your old-fash- ioned pickling ingredient. McCormick pickling spice is a versatile blend of spices and herbs that has many comfort food applica- tions. Slow cookers are  coming back. Try pickling spice with popular slow cooker recipes such as corned beef & cabbage, sauerbraten beefor german style pot roast.  An old favorite, McCormick pickling spice, can be a great addition to today’s meals. ” merchandising, effective marketing and a dynamic website. Our actions are driving category growth in many key markets. In 2004, the spice and seasoning category rose 2% in the U.S., 5% in Canada and 1% in the U.K. A tough competitive situation in France, however, led to a 1% category decline in 2004. With both brand and private label products, we enjoy a leading share in our largest markets. In the U.S. and the U.K. our share has increased to nearly 50%, and in France and Canada our share exceeds 50%. We also have a leading share in China and a strong presence in additional markets in Europe and Asia. As a result of marketing initiatives and expanded distribu- tion we continue to gain market share. In 2004, we added 1.4 percentage points to our U.S. market share of branded spices and seasonings.  > Throughout Europe, achieved 8% growth of dessert aids with new products and new distribution. > In the U.K., converted more than 5,000 stores to new pack- aging and merchandising of the Schwartz brand spices and herbs in only two months. With this change, we have signifi- cantly reduced the variety of packaging formats in Europe.  > In the U.S., strengthened a leading position with Hispanic consumers with new products and a focused expansion into Texas and Chicago markets. In 2005, for the first time, McCormick will advertise on Hispanic networks. Our unique grinder top adds fresh taste right at the table. With the introduction of new  flavors and the addition of  new markets, worldwide sales of grinders grew by 36% in 2004. > In the Netherlands, acquired the Silvo business, gaining entry into the Dutch market with a 63% market share. > Launched new products in the last 3 years that accounted for 6% of 2004 sales. > In the U.S., increased sales of the Zatarain’s brand 20% with expanded product penetration and new items. > In the U.S., significantly increased the effectiveness of trade promotions. This was one of the key factors in a 17% sales increase in the Americas. > In China, substantially improved our distributor network and streamlined our business to 75 well-qualified distributors. This was a reduction from 250 distributors in the network in 2003.  > Worldwide, grew sales of grinders by 36%. This innovative package originated in France, under the Ducros label. > Increased sales of our grilling products, including seasonings, marinade blends and sauces, 8% worldwide. Rubs are featured in the new product line up for 2005. 10 Following the acquisition of Zatarain’s in 2003, we increased 2004 sales of this brand 20%. The increase was due in part to the successful introduction of a new “Ready-to-Serve” line of rice mixes. 2004 highlights