How much of McCormick’s revenue comes from haram?

McCormick manufactures and sells spices, seasoning mixes, condiments, and dessert products.

The company operates through the following segments:

  • Consumer:

The Consumer segment offers rice, spices, herbs, and seasonings, as well as desserts. 

This segment markets its products under the McCormick, French, Frank’s RedHot, Lawry’s Cholula Hot Sauce, Gourmet Garden, Club House, OLD BAY, Ducros, Schwartz, Kamis, Drogheria & Alimentari, and Vahinà brands.

  • Flavor Solutions:

Includes revenue generated from providing a wide range of products and customized flavor solutions to multinational food manufacturers and foodservice customers, including seasoning blends, spices and herbs, condiments, coating systems, and compound flavors.

The contributions from each of McCormick’s revenue segments in their 2020 annual report were as follows:

Practical Islamic Finance concludes:

None of McCormick’s revenue comes from anything inherently haram.

Does McCormick rely on interest to operate?

Year-to-Date
for period ended
8/31/2021
Fiscal year
ended
11/30/2020
Fiscal year
ended
11/30/2019
Interest Income $7,800$10,100
Total Revenue$4,587,600$5,601,300$5,347,400
Interest Expense $103,300$135,600$165,200
Total Expenses$3,801,100$4,582,500$4,368,900
Interest Income / Revenue0.14%0.19%
Interest Expense / Total Expense2.72%2.96%3.78%
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes:

Riba is used but not relied upon in McCormick’s operations.

What is McCormick’s Environmental, Social, and Governance (ESG) impact?

Environment

In 2019, McCormick began utilizing 100% renewable energy from a wind farm to power its Texas facilities, resulting in a decrease in CO2 emissions by about 4% across its American supply chain sites.

Social

According to McCormick, once per year, the company partakes in “Charity Day,” where employees work to donate to local charities, and contributions are matched dollar-for-dollar by McCormick, resulting in millions of dollars raised.

In addition, McCormick has a Glassdoor rating of 3.9 out of 5.0 from over 450 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights.

Practical Islamic Finance concludes:

McCormick has a net positive ESG impact.

Comfort Rating

From McCormick’s business, financial, and ESG reviews, Practical Islamic Finance rates McCormick stock as:

Comfortable to invest in from a Halal perspective.

Sources

McCormick Q3 2021 10-Q

McCormick 2020 10-K  

2019 Progress Report 

McCormick & Company Reviews