McCormick says its quarterly ad spend increased significantly compared to the year prior, as the company is reporting a $234 million operating income  in Q1 compared to $199 million in the same period of the previous year.

The CPG is reporting that for the three months ending on February 29, sales in the Americas of its flavour solutions, which includes McCormick and Club House, were up about 5%. Its consumer segment, which includes Frank’s RedHot, French’s and Billy Bee, remained flat, but the company is reporting strong volume growth in hot sauces.

In Tuesday morning’s earnings call, McCormick president and CEO Brendan Foley attributed its strong performance in flavour solutions to increased brand marketing, new products and packaging. Last year, the company innovated its spice packaging for the first time in decades, and the company says this is “increasing velocity on shelves.”

“We are prioritizing marketing investments to connect with consumers and fuel growth,” Foley says, adding that McCormick is committed “to the best content in our categories,” and to engaging with consumers including through recipes. In Q1,  the company’s ad spend was up “significantly compared with the prior year…broad-based and across all regions… particularly in retail media.”

“We continue to prioritize investments in key categories and executing on the initiatives within our growth levers, including brand marketing, new products and packaging, category management, and proprietary technology,” Foley says.

The CPG’s 2024 outlook includes a “high single-digit increase” in brand marketing spend, and in the Americas, marketing is heavily focused on value and upcoming ad spend will be weighted toward the first half of the year.

Foley says the company is pleased with the growth and consumption it delivered for its seasoning business.

Total distribution points are up for hot sauce, which is seeing volume trends improve, especially after McCormick’s Super Bowl Frank’s RedHot campaign featuring now retired NFL player, Jason Kelce. This March, the company launched a squeeze bottle format of Frank’s RedHot sauce, and is excited about rolling out more Kelce-related creative there.

McCormick promises to increase brand marketing for Frank’s RedHot, which will be activated “year-round for the first time,” and is promising a hike in spend for its Mexican hot sauce brand, Cholula, two formats of which are launching in Canada this year.

Foley conceded that mustard in the Americas is experiencing “low price points for private label, impacting consumption.” McCormick is looking to counter this with increased promotion and product innovations.

The company also admits that it is experiencing volume declines in prepared food, as well as Asian and frozen products, but that “these items represent a small part of our portfolio.”

Consumer interest in healthy, flavourful cooking and trusted brands, remain key to profitability.