MCCORMICK & CO INC — Call Transcript 2026

Okay. Welcome everybody. Thanks for joining us. I am thrilled to welcome McCormick & Company back to what has become an annual tradition. Brendan Foley, Chairman, President, and Chief Executive Officer, and Marcos Gabriel, Executive Vice President and Chief Financial Officer. Thank you both for joining us here at the Deutsche Bank Conference. It's an annual tradition, but this is a unique conversation. There's a lot going on, and a lot has transpired over the past year. We'll just jump right into the Q&A. Brendan, I'll start with you. As I mentioned, a lot has evolved and transpired over the past year. I guess, when you think about the context of the demand backdrop, but also the pending acquisition with Unilever Foods, how would you frame the next chapter for McCormick from here? Maybe what are two, three, four things that you think investors should be most focused on as they think about McCormick's journey over the next year or two? Thanks for the question, Steve. I almost feel like that's a little bit of sort of describing where we've been and where we're going. Kind of. For the last two years, we've really been focused on driving overall volume-driven performance in our business, and especially in the context of a slower consumer packaged goods environment. I think we're really pleased with our results over the last two years. We've had seven quarters of just consecutive volume-driven growth in our consumer business, and we're outpacing our peers. Also, we're making progress too on growing our flavor solutions margin in our portfolio, and so making good progress on that. Most recently, we reported our first quarter, and it was largely on plan In terms of what we would've expected. As we look ahead, we really remain focused on balancing volume growth and profitability across our business, and that's sort of a key theme, I think, for us in 2026. We continue to invest behind our brands and really help drive innovation across the business. We recently did a transaction with McCormick de Mexico, and that was important obviously. It kind of really gave us a strong geographic presence in a key market, which is Mexico. Based on what we know today, we remain comfortable with our outlook for 2026. That's where we are and where we've been overall. Sort of where we're going, I think, is another way to look at this. I think the two to three things for investors that I would love to share, just in terms of where we're going, is that McCormick, if those who know us and those who are just getting to know us, think of us as just being intentionally focused on building a global flavor company. A company in the food industry focused on flavor, and we're doing that through M&A, we're doing that through R&D, we're doing that through geographic expansion. We feel like we've made a lot of good progress, but this Unilever Foods transaction really accelerates that long-term vision that we have for the company, and it creates an even more vibrant company focused on flavor at a global level. Both businesses are really well-positioned in the marketplace. What this does is it creates a combined company that's expected to have faster volume-driven growth across channels and geographies that are more diversified in the marketplace, best-in-class operating margin compared to the rest of the industry overall, and that's before we really realize any anticipated synergies. That's kind of a little bit shortly how we view this right now. This combination's expected on a top-line basis, at least by year three, to sort of drive 3%-5% top-line growth, but also adjusted operating margins of 23%-25%. These are two businesses that have really strong cash flow, and so the operating cash flow generation, I think, is something that we can lean into to obviously fund organic growth, but also fund the dividend that we currently pay, but also on the top of that, funding debt.We believe that cash flow really supports that story nicely. Achieving this portfolio as well as this geographic presence would've taken us more than a decade to do. What this really has is sort of accelerated our ability to get to that vision of who we view ourselves in terms of our role within the food industry. I think the final point is a recognition that this deal is of greater scale than what we've done before. We've done big acquisitions before in the context of McCormick's size, but this certainly is bigger. Having said that, we believe that the complexity is certainly identifiable, it's manageable, and we're off to a really good start, and I'm sure I'll get a chance through other questions here today, but to describe sort of where we think we are right now in that process. Yeah. Well, you and I have talked a couple of times in the last month or two. I know that there's been a lot of integration planning. Yeah. That's already taken place. Maybe provide an update on that planning and maybe give folks a sense of what it looks like, what the structure of integration management looks like, if there's an integration office that's been set up, key work streams. Just what is going on behind the scenes as we stand here today? There is a lot of great sort of activity, and I would say it's well underway. We were started well over a month ago. We've established a separation committee, also an integration management office, and we've got 20 functional teams across both companies really resourced up against planning this integration to deliver a very smooth one without disruption to the business overall. The integration management office is led by Andrew Foust, who was formerly the President of the Americas region. I think what's important there is knowing Andrew's a strong sort of leader within our business. Also, Andrew has previously led and helped lead the integration of Reckitt Benckiser Foods, Cholula, and also our FONA acquisition into our business. A ton of experience there. Then backing him up, we have an interim President for the Americas region, who already was reporting to Andrew in that role overall. On the Unilever side, we have equal level of dedication across their organization to this, and there's been a lot of already constant dialogue between both teams. Right now this week, all those teams are in Baltimore. I'll be there tomorrow. Okay. They're all there in Baltimore continuing the blueprinting work that we have to do. That backs up a meeting they had four weeks ago in London to do the very same thing. The amount of engagement is very deep, very strong. Overall, think about this as more than 200 people combined between both companies dedicated to really executing this integration and planning for it. That includes every function and business process that we're looking at right now. I think second, it's important to really define sort of the complexity that we're looking at, across this transaction. From a carve-out perspective, think about this business coming away from the whole Unilever company. The Unilever Foods business, about 80% of it operates standalone. That's your sales organization, its R&D, its supply chain, effectively how they execute and really execute and market. That gives us a lot of confidence being able to sort of think about the difficulty of separating it out from the Unilever Foods organization. About 20% is coming through what is their One Unilever part of their organization. That's going to take us a little bit more work just to make sure that we figure that out. Just to provide other context, we're really making progress on mapping market by market where we see this integration moving. Right now, 75% of the sales of the combined company come from 10 markets. The top six are the United States, China, U.K., France, Mexico, Canada. Those six, we already operate directly, both of us do, at scale. That's going to get a lot of attention in terms of how we think about the integration in those top six markets and how we'll execute that. The other four, Brazil, the Philippines, Indonesia, and Germany, we don't really have a direct presence. That's going to really acquire a different approach and sort of be more of a lift-and-shift type thinking and mentality. Also, those are markets where we don't have real McCormick brand presence, too. We'll also have a lot of planning going on to think about what is the right way to kind of launch those plants into the market. TSA agreements will be in place, and then when we look at other three work streams I think are critically important, obviously synergies. What you'll hear from us at the end of the third quarter, is we're going to provide more detail on how we're looking at synergies overall. We're already now into the second phase of that planning, and our level of confidence is rising on that. From a growth standpoint, we're having similar work going on. At the end of the third quarter, we'll be providing more context around that, too. Again, that's really important work that we want to kind of really have advanced work on before we hit close. Yeah. Lastly, we have a culture work stream, which I think is very important because cultural alignment, as many of you know, is really critical in any big combination. That work is important. We're starting from a standpoint of a lot of commonality. I've already myself been in front of the Unilever organization in some rather large settings. Last week on Thursday, we were in Rotterdam and spoke to about 5,000 Unilever employees. Really shared with them kind of our ways of working, the way we would describe our culture. I think it really put a little bit of comfort in the minds of employees in terms of, okay, who is this McCormick team and how do they operate, and how do they think about the food business. How do they think about driving the business overall? We did a similar thing in New Jersey three weeks ago. Spoke to the whole U.S. organization. We're getting out there, we're getting a chance to meet the organization, and I really am excited about this culture work stream, too. Okay. I'm excited about the 3Q call now. Yes. You mentioned the 3%-5% targeted growth as you think out a couple of years. When you think about all the different levers to unlock incremental growth, what are the top call-outs for you? There's a lot to be excited about. I'm going to start maybe to provide context around this, just with sort of a summary way of me thinking about it, and then I'll unpack it a little bit. This is a portfolio with very strong brands who are operating in categories with really good global growth. Those categories really benefit from structural consumer trends. You combine that with a best-in-class go-to-market footprint at both a global level and a channel level, you combine that together, we see a lot of incremental growth opportunities overall. I think what's first important to unpack is just really the categories in which we operate in. From the McCormick side, we're bringing in a lot of expertise in herb, spices, and seasonings, hot sauce, mustard, and we've demonstrated a lot of growth in those categories, certainly over time. Unilever's bringing in a real expertise in mayonnaise and bouillon and other cooking aids, and they're really seeing a lot of growth from their portfolio and category. As I've been meeting with investors, I think it's important to sort of just double-click a little bit on mayonnaise and bouillon and the categories that Unilever's bringing to this combined portfolio. Mayonnaise is a very healthy category at a global level. It's been experiencing really strong growth. It also has projected strong growth. What I think is really important is it's growing not only in the core and mainstream varieties of the category. It's also growing because you're looking at some of those areas where the health and wellness cues that consumers are looking for, like a different kind of oil or lower in fat. Both of those together are driving volume growth. We also see younger consumers are really expanding the usage of mayonnaise, too. It's very relevant with younger generations. Bouillon, are also seeing a lot of other aspects of what really drives, I think, the trends behind that part of the category, too. This is something which is seeing a lot of strong global trends. It's really, I think, driven by the fact that we see a lot of urbanization right now. Sort of more participation in the workforce, particularly in markets like in Latin America and Asia. Those time-saving convenience needs of how you kind of put a meal on the table, especially ones that require low simmer cooking, these are shortcuts, and they're really value-added, and they're really a great value. We're seeing a lot of growth there, too. Overall, I think that the trends in the marketplace really do support this category that we're combining with McCormick, and I think that's quite exciting. On the channel side and the geographic side, that whole go-to-market footprint that I've been talking about, it just is a really great balance between developed and emerging market exposure. It certainly changes McCormick's view from a concentration standpoint. 60% of our business today comes from North America. In the future, it's going to be a third, and the rest of that comes from a more balanced geography. We have a lot of great channel presence, both in the consumer and food service channels. I would say in food service, everyone, I think, really has an appreciation for our presentation and our presence in consumer. The one that I think probably needs more airtime is almost food service. Both companies have genuine strengths in their go-to-market models there. When you bring those together, there's a lot of cross-selling opportunity, a lot of geographic expansion opportunity also in food service. Lastly, I'll just wrap up. It's our brands. We have very strong global brands in Hellmann's, McCormick, Knorr, and those brands have proven to be relevant with younger households. We have a strong global marketing organization in both companies, and when we bring that together, I think our ability to really drive relevance with new consumer households is really important. On top of that, there are at least a handful of brands that we believe have real potential at a global level. A brand like Maille or Cholula or Frank's RedHot have a lot of upside growth, but they just need investment to keep growing and kind of getting introduced to new markets. Yeah. Okay. Marcos, Brendan mentioned the evolving geographic footprint, more emerging markets. With that comes better prospects for normalized organic growth. I've also heard a little bit of concern from McCormick shareholders that, wow, this is going to increase our exposure to a lot of volatility. Volatility in consumer trends, volatility in FX. How do you think about that balance? This is another exciting part of the combination, which is expanding into emerging markets, which is an attractive growth potential for McCormick. Expanding in emerging market has always been our intention since when we announced Investor Day back in 2024. This transaction actually accelerates that plan. It provides immediate scale and distribution that otherwise would take decades as brand [animation] to achieve. Unilever brand building capacity over the years in those emerging markets have been great. Markets like Philippines, Indonesia, other markets, but there are still opportunities within Latin America, Asia, and Middle East. We believe that this is very attractive from a growing population perspective as well, and rising middle classes in those markets. We see higher long-term demand environment building across emerging markets. If you think about Knorr as a global brand, $5 billion global brand with high consumer awareness and high growth margin, and emerging market exposure, that is an awesome brand for us to have. Now, we do have both decades of experience both companies, decades of experience in managing emerging markets. McCormick has been in emerging markets. Right now, not at the same scale as Unilever. A big part of my career has been operating in emerging markets as well. From the standpoint of managing the risks, and I would think about the currency risks and the inflationary risks that comes by managing those markets. First, we'll be doing this for a long time, managing those risks. I would describe that the transaction exposure risk is one that the combined company likely to have a more of a natural hedge. As a significant portion of our operations, we manufacture where we sell, so we're going to see that from the FX perspective. From the inflation perspective, we'll continue to leverage our playbook, which is revenue growth management, price pack architecture designed for local usage, the simplification of a portfolio, which is essential, especially when you are selling through traditional trade in those markets. Then obviously our CCI program. One of the things that I learned over the years in managing these markets is about speed and agility. They are essential in getting in front of those impacts and be able to mitigate them. In addition to that, I would say that Unilever Foods bringing a lot of talent and expertise in those markets. They will be part of our larger organization and bringing that expertise in. Overall, I would say, emerging markets moving from 25% today to 40% in the future. Yep. Actually, it's a growth opportunity for us without taking excessive risk. I think it mitigates an excessive risk. Yeah. Okay. To go after all those growth opportunities, you've been clear that there's a good amount of synergy, but there's a good amount of reinvestment. How should we all think about the balance between margin expansion and reinvestment as priorities in the first couple of years post-integration? Both Unilever and McCormick, especially over the last few years, have been very consistent in terms of using the playbook of margin expansion and invest back in terms of brand marketing to drive top-line growth and operating margin expansion. Put simply, we're not going to compromise growth at the expense of margin expansion. We are going to continue to invest in organic growth and brand marketing. Over the last three years, Unilever has been investing about 8% of net sales on a comparable basis to our 7% of our consumer segment, and we'll continue to do that. At least that is the baseline to work from and likely to continue to invest more in the future. Unilever Foods achieved their operating margin profile by historically expanding gross margin and again, investing back in those brands, especially those big brands, Knorr and Hellmann's, over the years. Okay. Over the first couple of years, the plan will remain consistent. We plan to gradually expand operating margins while continuing to invest behind our brands to drive the long-term growth. The margins will come from volume growth, revenue growth management, and cost synergies. Those are the kind of the three elements that will help us enable gross margin expansion and then invest back in brand marketing. Great. You talked about EPS accretion from the deal. Brendan mentioned the promise of a pretty powerful free cash flow. Maybe ground us in sort of your base case expectations on both those fronts, and then what are the key variables to keep in mind as you think about upside or potential risk around those fronts? When we think about sensitivities, the way that I look at this is there is two key aspects of sensitivities within the financial model. One is growth, and the other one is around the speed of achieving savings or the synergies. In terms of top-line growth, what supports the year three projections is the continued growth of the categories in which we are in, plus our track record of driving growth. If you think about our financial model, the financial model works for us in the range of 3%-4% the financial model work for us. Right. On synergies, we expect to realize the $600 million synergies, as we said before. That puts us in the middle of the range of 23%-25% operating margin, so about 24% operating margin. Okay. The sensitivity around synergies is really the speed in which we'll be delivering the synergies. At this time, we said that about 2/3 of the synergies to be realized by year two and the remaining by year three. EPS accretion, we talked about it as a consequence of the P&L. EPS accretion we said to be in the mid to high teens in year three, post synergies. First full year to be mid to high single digits. We continue to feel confident about those numbers. That's the P&L. Moving into the cash component, I think is important as well to talk about, and the capital allocation. CAPEX, we talked about 3% of net sales or above $700 million of investments. We intend to maintain and grow our dividends policies that we have been doing within McCormick. That is going to be the case going forward. We have a very focused mindset to delever from the at or below 4x at close to 3x within two years. To unpack a little bit about the deleveraging plans, I think that's important to talk about. I would say, first, both companies start from a position of strength, both in terms of profit and cash flow generations, even though navigating difficult environments as we have been. The combined company expect to have operating margins of 21% and working capital benefits that drives 100% of free cash flow conversion to net income, which is very solid. Right from the start. Right from the start. Yeah. Right. Post-close, we expect to invest in the business and drive margin expansion. Our year three delevering projections are based on the low end of the operating margin range that we gave. After all the investments, you think about brand investments, cost to achieve synergies, dividends, we anticipate having $1.5 billion-$2 billion of cash to pay down debt within the first two years. It is a very solid P&L, a very solid cash flow generation, allow us to pay dividends, allow us to invest in CAPEX, and we still have $1.5 billion-$2 billion of cash left to pay down debt and get to 3x at year two. Okay, perfect. Brendan, I think every time you've spoken since the deal, we've learned more, including today. I think the disclosure has been pretty continuous. You teased the 3Q updates as well. When we think about the path to roundabout mid-2027 close, how should we think about the milestones of further disclosure as we march toward that end goal? The timeline until close on this transaction is really driven by the legal and regulatory processes for the carve-out and also the combination. Yep. We see that as pretty typical for this type of structure and transaction and scale of it overall. We will use that time to our advantage to just really complete very rigorous planning overall, and we're moving with intent on all of those areas. I think in terms of milestones, what I think is important to share is kind of let's set the expectations as follows. By the end of July we'll be able to share a location of the secondary listing. Okay. We'll be able to do that. I think it'll be important for investors to know what that will be, and so we'll obviously make sure that we share that as quickly as we can. By the end of the third quarter, there are four things we want to be able to share more detail on. The first is the combined company's target operating model. Hmm-mm. Think about how's this company going to run? How's it choosing to operate? What will be the leadership roles within that top structure? We'll be able to share that, and I think that's also important to frame how we're viewing how we're running the business. The second area is providing more color on cost synergies and the implementation plan, so we'll be able to do more of that. As I said, we're already in our second phase, and we feel like our confidence is increasing on at least hitting the numbers that we talked about overall. The fourth thing is we'll have a refined view of how we're looking at growth synergies. I've already shared a lot today. Great color, but maybe we can provide a little bit more substance on how we're seeing it, maybe even down to a market level. Then lastly, the fourth thing we'll share is more of a defined scope on the TSA plans. Yep. That'll be specifically around IT distribution, go to market. Work streams are fully underway to do both supporting the carve-out financials as well as the regulatory filings. Those are working in parallel. We'll be able to share more context around that timing when we get to the end of the third quarter. Okay. Those are type of the long lead items that we've got overall. Depending on Unilever's carve-out timeline and those financials, that will then sort of dictate when we do shareholder vote, and then that'll probably be much closer to close overall. Okay. I think our goal is to really continue building investor confidence by sharing regularly updates and more details in terms of how we're looking at our planning. The point is to show the sort of the match to what we said, right? Really sort of make sure we generate confidence there. At the same time, it's really about operating our current business and achieving our goals for 2026. Okay, perfect. The secondary listing, Marcos, one thing that has been a kind of a perpetual question or concern is just flow back dynamics. Yeah. In terms of certain U.K.-based or European investors being forced to sell post-close, how are you thinking about that technical item? Right. Yeah, right. Yeah, that's what we heard as well from investors. Yeah. I mean, the focus often on flow back. The way that we frame this is it's important to remember that McCormick is going to be three times the size as it is today. With 50% of capital is being managed in U.S., being managed by index and ETF funds, there should also be a sizable index buying demand on closing as McCormick becomes a larger constituent of U.S. indices. We believe that the flow back is expected to more than offset any risks of any selling U.K. or European index trading funds at closing. Potential mandate-driven selling based on our analysis is very limited and to a small portion of some U.K. European investors. We believe that net net, the flow forward is going to more than offset the flow back, based on what we know today. Many active managers will have the flexibility to continue holding McCormick shares at closing. As we said today, as we mentioned today, Brendan mentioned it, the secondary European listing will also be confirmed by the end of July. Which should also help support flows and create broader liquidity. In addition to engaging with McCormick shareholders, Brendan and I have been engaging with Unilever shareholders and European-based active shareholders to make sure that they recognize the merits of this transaction and the combined company. We are very confident in the long-term benefits of this transaction and what provides to all shareholders. At the same time, we believe that the world's largest capital markets will be able to absorb the flows of this transaction, and we have grounds to believe the flow back will be manageable. Manageable. Yeah. Okay. Brendan, you talked about the importance of staying focused and delivering on fiscal 2026. I actually think in recent weeks that's been the bigger concern of investors is can McCormick adhere to guidance which you've affirmed? What milestones should we be watching for to gain more confidence that those 2026 goals are achievable and the company's not being distracted? Yeah, I think, I'll talk about from a McCormick perspective and even make a comment from a Unilever perspective. From a McCormick perspective, I think investors should look for continued organic sales growth margin expansion, continuing to invest in the business. Those three things are key themes for us in 2026. As we look at it, we continue to really drive investment in the business too, I think you'll continue to see us investing, sorry, balancing both volume and profitability, and we're not trying to sacrifice either. I think in that context, it's important that we're really committed to doing that. As we get through the year, we still see an ability to do that. We're focused on driving long-term healthy trends in our business overall and doing that across both segments that we've got. We feel pretty confident about being able to do that throughout the entire year, and we'll always be remaining focused on sort of creating that balance right now. I think it's important in the marketplace. When I think about our key themes for 2026, I still feel like we're going to try and deliver on most of those. Interestingly, it's the very same key themes for Unilever. Yep. Overall, I have a lot of confidence after talking with their teams, too, because it's a recurring point, which is strengthening and continuing to execute on the base business. That gives us confidence, too, and we expect them to continue their performance and track record. Having said this, both companies are doing this in the context of just continuing disruption that's coming into the marketplace especially through inflationary pressures, and we're finding a way to work through that which I think is kind of the most important point. On the context or the idea of distraction. Overall, I think that what I would tell you is that I observe tremendous organizational and operational clarity right now. We get that because we really have dedicated the resources to work the integration. When they go to a meeting throughout the day, they're not trying to work on both. Yeah. They're working on one. The same is true with the rest of the team. Obviously, the lion's share of our organization, working on the existing business, and there's just a lot of clarity and focus around that. We're not conflating the two, and we're making sure that we don't. I think that discipline is something that we're good at overall, but it's also important to be said. That's how we're going to carry ourselves through the rest of the year. Okay. Yeah, the external environment's not making life easier on anybody. I guess, maybe if you step back, what is your perspective on the state of the consumer, both in the U.S. and more broadly, overseas? I guess what implications for your categories and for your business are you seeing in evolving trends? If I step back and think about the way we've been talking about this the last several quarters, we've been talking about a pressured consumer. You see that expressed as more frequent trips to the grocery store, buying fewer items, greater demand for value, and taking a look at that. At the same time, searching for health and wellness at shelf. What's interesting is they're not compromising on health and wellness, even though they're looking for more value, they're trying to find both. Right now, what we're seeing is even a little bit more noise in the data, which would take me to this point of this idea of a resilient consumer that we've been talking about now for many quarters. Feels like it's weakening a little bit in the context of rising gas prices. I think it's difficult to identify how long we think that will be the case. It's something that we're really taking a close look at overall. Having said all of that, we've been through similar environments in the past, and we know how to navigate them, and I think Unilever does, too. This is an environment where we have to manage margin and also volume growth, and we'll have to balance those two, I think, in this environment. Also, in these environments, our categories still continue to grow in demand. I mean, flavor's still on trend. We have a lot to be thankful for in terms of our categories being healthy. Also, we have to think about how we navigate now that we have different factors going on overall. Having said that, we're always prepared to really kind of keep driving, I think, performance in the marketplace. For the rest of the year, what you'll see from us is continued growth in distribution, continued focus on revenue growth management plans being implemented in the marketplace. We'll still get the benefit of a lot of launches that we did in 2025, like our McCormick Gourmet renovation overall. Then we think about the innovation that we're launching this year, pretty exciting stuff. Our French's Mustard business, we've done a promotional partnership with the release of the new Minions movie. Are you a fan? Of course. Okay. It's actually kind of exciting. We're turning the color of mustard green because of the key character in the movie. It's all natural colors, by the way. That's kind of an exciting element of just bringing fun to the category overall. We're relaunching our Seasoning Blends line, and what I'm really excited about, yes, there's new flavors, it's the price pack architecture changes that we're driving to create maybe more value at shelf. I'm excited about that. We're taking some of our new platforms and just launching them with really strong promotional ties, like Bridgerton or Harry Potter. These are fun, exciting things that we're doing over the summer. I'm a fan of those two. What? I'm a fan of those two. I'll get you some green mustard. Good. I guess, Marcos, from your perspective, what are the most acute cost or demand pressures as you think about 2026, and I guess what gives you the confidence that you can? Yeah. Fight through them? Yeah, we're in a quiet period right now, so we cannot share a lot of information, and we'll be able to share more information as part of our close earnings call at the end of June. Okay. Based on what we know today, we remain on track with our outlook for 2026. Sure. Overall, Brendan talked about the perspective on the consumer environment. I'm going to cover the cost piece. Yes, from a cost perspective, we are seeing cost increase. We do plan to mitigate the vast majority of those cost pressures through CCI programs, supply chain initiatives, as well as, obviously, leveraging revenue management capabilities that we have been doing over the last couple of months. In periods of cost pressures, we're trying to balance the idea of margin management with top-line growth as much as best as we can. Meet the consumers where they are with innovation, with convenience and price. That has been really the focus of the management team, is how do we protect the margins as well as drive the volume as much as we can in terms of finding that balance. Overall, we believe that the costs are rising, but we have elements in place and our toolbox in place to really offset those during the year Okay. We're closing in on the end of time. To close, I guess if there was one message or one strategy, maybe one message on execution, one message on strategy that you would leave investors with in terms of this is what investors should be focused on, this is what we're focused on, what would it be? Strategically, I think the headline for me would be McCormick is the right home for this Unilever Foods portfolio. It is the vision of how we view ourselves operating in flavor. We're intentionally focused on it, our technology, our talent, our brands. That's all we're focused on. We see a lot of growth in that part of the marketplace. We're creating global scale in these attractive categories by combining these two businesses. Just like I said before, we're enabling ourselves to accomplish something that would take decades to do for either company, actually. It creates a very unique proposition in the industry to have this really focused portfolio with scale, and I think that's quite exciting overall, and it's ultimately what's going to really amplify things that already make McCormick a great company. From an execution standpoint, I think the most important is, obviously, we're doing two things right now. We're running the existing business, and we're preparing an integration plan for the business. They're both receiving that very dedicated attention and focus that you would want them to have. All of our executional attention is on the clarity, organizationally and operationally on needing to do both, dedicating the resources to make that happen. I feel pretty confident about our ability to execute that. That's without dismissing an investor concern about the scale or the complexity. I would argue there's always complexity in integrations. We just have to really buckle down and make sure that we think it through and do a good job of executing that. We have a track record of doing that overall. Execution is definitely on our mind right now to make sure that we get through the year by accomplishing both, and we're off to a very good start, we think. Okay. With that, we'll wrap it up. I wish you a good trip back to Baltimore so you can participate in those meetings tomorrow. Yeah. Thanks for joining us. Thank you. Thanks to all of you for joining us as well.

Speaker 3: Okay. Welcome everybody. Thanks for joining us. I am thrilled to welcome McCormick & Company back to what has become an annual tradition. Brendan Foley, Chairman, President, and Chief Executive Officer, and Marcos Gabriel, Executive Vice President and Chief Financial Officer. Thank you both for joining us here at the Deutsche Bank Conference. It's an annual tradition, but this is a unique conversation. There's a lot going on, and a lot has transpired over the past year. We'll just jump right into the Q&A. Brendan, I'll start with you. As I mentioned, a lot has evolved and transpired over the past year. I guess, when you think about the context of the demand backdrop, but also the pending acquisition with Unilever Foods, how would you frame the next chapter for McCormick from here? Okay. okay Welcome everybody. welcome everybody Thanks for joining us. thanks for joining us I am thrilled to welcome McCorm ick & Company back to what has become an annual tradition. i am thrilled to welcome mccorm ick & company back to what has become an annual tradition Brendan Foley, Chairman, President, and Chief Executive Offic er, and Marcos Gabriel, Executive Vice President and Chief Financial Officer. brendan foley chairman president and chief executive offic er and marcos gabriel executive vice president and chief financial officer Thank you both for joining us here at the Deutsche Bank Conference. thank you both for joining us here at the deutsche bank conference It's an annual tradition, but this is a unique conversation. it's an annual tradition but this is a unique conversation There's a lot going on, and a lot has transpired over the past year. there's a lot going on and a lot has transpired over the past year We'll just jump right into the Q&A. we'll just jump right into the q&a Brendan, I'll start with you. brendan i'll start with you As I mentioned, a lot has evolved and transpired over the past year. as i mentioned a lot has evolved and transpired over the past year I guess, when you think about the context of the demand backdrop, but also the pending acquisition with Unilever Foods, how would you frame the next chapter for McCormick from here? i guess when you think about the context of the demand backdrop but also the pending acquisition with unilever foods how would you frame the next chapter for mccormick from here Maybe what are two, three, four things that you think investors should be most focused on as they think about McCormick's journey over the next year or two? Maybe what are two, three, four things that you think investors should be most focused on as they think about McCormick's journey over the next year or two? maybe what are two three four things that you think investors should be most focused on as they think about mccormick's journey over the next year or two

Speaker 1: Thanks for the question, Steve. I almost feel like that's a little bit of sort of describing where we've been and where we're going. Thanks for the question, Steve. thanks for the question steve I almost feel like that's a little bit of sort of describing where we've been and where we're going. i almost feel like that's a little bit of sort of describing where we've been and where we're going

Speaker 3: Kind of. Kind of. kind of

Speaker 1: For the last two years, we've really been focused on driving overall volume-driven performance in our business, and especially in the context of a slower consumer packaged goods environment. I think we're really pleased with our results over the last two years. We've had seven quarters of just consecutive volume-driven growth in our consumer business, and we're outpacing our peers. Also, we're making progress too on growing our flavor solutions margin in our portfolio, and so making good progress on that. Most recently, we reported our first quarter, and it was largely on plan In terms of what we would've expected. For the last two years, we've really been focused on driving overall volume-driven performance in our business, and especially in the context of a slower consumer packaged goods environment. for the last two years we've really been focused on driving overall volume-driven performance in our business and especially in the context of a slower consumer packaged goods environment I think we're really pleased with our results over the last two years. i think we're really pleased with our results over the last two years We've had seven quarters of just consecutive volume-driven growth in our consumer business, and we're outpacing our peers. we've had seven quarters of just consecutive volume-driven growth in our consumer business and we're outpacing our peers Also, we're making progress too on growing our flavor solutions margin in our portfolio, and so making good progress on that. also we're making progress too on growing our flavor solutions margin in our portfolio and so making good progress on that Most recently, we reported our first quarter, and it was largely on plan In terms of what we would've expected. most recently we reported our first quarter and it was largely on plan in terms of what we would've expected As we look ahead, we really remain focused on balancing volume growth and profitability across our business, and that's sort of a key theme, I think, for us in 2026. We continue to invest behind our brands and really help drive innovation across the business. We recently did a transaction with McCormick de Mexico, and that was important obviously. It kind of really gave us a strong geographic presence in a key market, which is Mexico. Based on what we know today, we remain comfortable with our outlook for 2026. That's where we are and where we've been overall. Sort of where we're going, I think, is another way to look at this. As we look ahead, we really remain focused on balancing volume growth and profitability across our business, and that's sort of a key theme, I think, for us in 2026. as we look ahead we really remain focused on balancing volume growth and profitability across our business and that's sort of a key theme i think for us in 2026 We continue to invest behind our brands and really help drive innovation across the business. we continue to invest behind our brands and really help drive innovation across the business We recently did a transaction with McCormick de Mexico, and that was important obviously. we recently did a transaction with mccormick de mexico and that was important obviously It kind of really gave us a strong geographic presence in a key market, which is Mexico. it kind of really gave us a strong geographic presence in a key market which is mexico Based on what we know today, we remain comfortable with our outlook for 2026. based on what we know today we remain comfortable with our outlook for 2026 That's where we are and where we've been overall. that's where we are and where we've been overall Sort of where we're going, I think, is another way to look at this. sort of where we're going i think is another way to look at this I think the two to three things for investors that I would love to share, just in terms of where we're going, is that McCormick, if those who know us and those who are just getting to know us, think of us as just being intentionally focused on building a global flavor company. A company in the food industry focused on flavor, and we're doing that through M&A, we're doing that through R&D, we're doing that through geographic expansion. We feel like we've made a lot of good progress, but this Unilever Foods transaction really accelerates that long-term vision that we have for the company, and it creates an even more vibrant company focused on flavor at a global level. I think the two to three things for investors that I would love to share, just in terms of where we're going, is that McCormick, if those who know us and those who are just getting to know us, think of us as just being intentionally focused on building a global flavor company. i think the two to three things for investors that i would love to share just in terms of where we're going is that mccormick if those who know us and those who are just getting to know us think of us as just being intentionally focused on building a global flavor company A company in the food industry focused on flavor, and we're doing that through M&A, we're doing that through R&D, we're doing that through geographic expansion. a company in the food industry focused on flavor and we're doing that through m&a we're doing that through r&d we're doing that through geographic expansion We feel like we've made a lot of good progress, but this Unilever Foods transaction really accelerates that long-term vision that we have for the company, and it creates an even more vibrant company focused on flavor at a global level. we feel like we've made a lot of good progress but this unilever foods transaction really accelerates that long-term vision that we have for the company and it creates an even more vibrant company focused on flavor at a global level Both businesses are really well-positioned in the marketplace. What this does is it creates a combined company that's expected to have faster volume-driven growth across channels and geographies that are more diversified in the marketplace, best-in-class operating margin compared to the rest of the industry overall, and that's before we really realize any anticipated synergies. That's kind of a little bit shortly how we view this right now. This combination's expected on a top-line basis, at least by year three, to sort of drive 3%-5% top-line growth, but also adjusted operating margins of 23%-25%. Both businesses are really well-positioned in the marketplace. both businesses are really well-positioned in the marketplace What this does is it creates a combined company that's expected to have faster volume-driven growth across channels and geographies that are more diversified in the marketplace, best-in-class operating margin compared to the rest of the industry overall, and that's before we really realize any anticipated synergies. what this does is it creates a combined company that's expected to have faster volume-driven growth across channels and geographies that are more diversified in the marketplace best-in-class operating margin compared to the rest of the industry overall and that's before we really realize any anticipated synergies That's kind of a little bit shortly how we view this right now. that's kind of a little bit shortly how we view this right now This combination's expected on a top-line basis, at least by year three, to sort of drive 3%-5% top-line growth, but also adjusted operating margins of 23%-25%. this combination's expected on a top-line basis at least by year three to sort of drive 3%-5% top-line growth but also adjusted operating margins of 23%-25% These are two businesses that have really strong cash flow, and so the operating cash flow generation, I think, is something that we can lean into to obviously fund organic growth, but also fund the dividend that we currently pay, but also on the top of that, funding debt.We believe that cash flow really supports that story nicely. Achieving this portfolio as well as this geographic presence would've taken us more than a decade to do. These are two businesses that have really strong cash flow, and so the operating cash flow generation, I think, is something that we can lean into to obviously fund organic growth, but also fund the dividend that we currently pay, but also on the top of that, funding debt. these are two businesses that have really strong cash flow and so the operating cash flow generation i think is something that we can lean into to obviously fund organic growth but also fund the dividend that we currently pay but also on the top of that funding debt We believe that cash flow really supports that story nicely. we believe that cash flow really supports that story nicely Achieving this portfolio as well as this geographic presence would've taken us more than a decade to do. achieving this portfolio as well as this geographic presence would've taken us more than a decade to do What this really has is sort of accelerated our ability to get to that vision of who we view ourselves in terms of our role within the food industry. I think the final point is a recognition that this deal is of greater scale than what we've done before. We've done big acquisitions before in the context of McCormick's size, but this certainly is bigger. Having said that, we believe that the complexity is certainly identifiable, it's manageable, and we're off to a really good start, and I'm sure I'll get a chance through other questions here today, but to describe sort of where we think we are right now in that process. What this really has is sort of accelerated our ability to get to that vision of who we view ourselves in terms of our role within the food industry. what this really has is sort of accelerated our ability to get to that vision of who we view ourselves in terms of our role within the food industry I think the final point is a recognition that this deal is of greater scale than what we've done before. i think the final point is a recognition that this deal is of greater scale than what we've done before We've done big acquisitions before in the context of McCormick's size, but this certainly is bigger. we've done big acquisitions before in the context of mccormick's size but this certainly is bigger Having said that, we believe that the complexity is certainly identifiable, it's manageable, and we're off to a really good start, and I'm sure I'll get a chance through other questions here today, but to describe sort of where we think we are right now in that process. having said that we believe that the complexity is certainly identifiable it's manageable and we're off to a really good start and i'm sure i'll get a chance through other questions here today but to describe sort of where we think we are right now in that process

Speaker 3: Yeah. Well, you and I have talked a couple of times in the last month or two. I know that there's been a lot of integration planning. Yeah. yeah Well, you and I have talked a couple of times in the last month or two. well you and i have talked a couple of times in the last month or two I know that there's been a lot of integration planning. i know that there's been a lot of integration planning

Speaker 1: Yeah. Yeah. yeah

Speaker 3: That's already taken place. Maybe provide an update on that planning and maybe give folks a sense of what it looks like, what the structure of integration management looks like, if there's an integration office that's been set up, key work streams. Just what is going on behind the scenes as we stand here today? That's already taken place. that's already taken place Maybe provide an update on that planning and maybe give folks a sense of what it looks like, what the structure of integration management looks like, if there's an integration office that's been set up, key work streams. maybe provide an update on that planning and maybe give folks a sense of what it looks like what the structure of integration management looks like if there's an integration office that's been set up key work streams Just what is going on behind the scenes as we stand here today? just what is going on behind the scenes as we stand here today

Speaker 1: There is a lot of great sort of activity, and I would say it's well underway. We were started well over a month ago. We've established a separation committee, also an integration management office, and we've got 20 functional teams across both companies really resourced up against planning this integration to deliver a very smooth one without disruption to the business overall. The integration management office is led by Andrew Foust, who was formerly the President of the Americas region. I think what's important there is knowing Andrew's a strong sort of leader within our business. Also, Andrew has previously led and helped lead the integration of Reckitt Benckiser Foods, Cholula, and also our FONA acquisition into our business. A ton of experience there. Then backing him up, we have an interim President for the Americas region, who already was reporting to Andrew in that role overall. There is a lot of great sort of activity, and I would say it's well underway. there is a lot of great sort of activity and i would say it's well underway We were started well over a month ago. we were started well over a month ago We've established a separation committee, also an integration management office, and we've got 20 functional teams across both companies really resourced up against planning this integration to deliver a very smooth one without disruption to the business overall. we've established a separation committee also an integration management office and we've got 20 functional teams across both companies really resourced up against planning this integration to deliver a very smooth one without disruption to the business overall The integration management office is led by Andrew Foust, who was formerly the President of the Americas region. the integration management office is led by andrew foust who was formerly the president of the americas region I think what's important there is knowing Andrew's a strong sort of leader within our business. i think what's important there is knowing andrew's a strong sort of leader within our business Also, Andrew has previously led and helped lead the integration of Reckitt Benckiser Foods, Cholula, and also our FONA acquisition into our business. also andrew has previously led and helped lead the integration of reckitt benckiser foods cholula and also our fona acquisition into our business A ton of experience there. a ton of experience there Then backing him up, we have an interim President for the Americas region, who already was reporting to Andrew in that role overall. then backing him up we have an interim president for the americas region who already was reporting to andrew in that role overall On the Unilever side, we have equal level of dedication across their organization to this, and there's been a lot of already constant dialogue between both teams. Right now this week, all those teams are in Baltimore. On the Unilever side, we have equal level of dedication across their organization to this, and there's been a lot of already constant dialogue between both teams. on the unilever side we have equal level of dedication across their organization to this and there's been a lot of already constant dialogue between both teams Right now this week, all those teams are in Baltimore. right now this week all those teams are in baltimore I'll be there tomorrow. I'll be there tomorrow. i'll be there tomorrow

Speaker 3: Okay. Okay. okay

Speaker 1: They're all there in Baltimore continuing the blueprinting work that we have to do. That backs up a meeting they had four weeks ago in London to do the very same thing. The amount of engagement is very deep, very strong. Overall, think about this as more than 200 people combined between both companies dedicated to really executing this integration and planning for it. That includes every function and business process that we're looking at right now. I think second, it's important to really define sort of the complexity that we're looking at, across this transaction. From a carve-out perspective, think about this business coming away from the whole Unilever company. The Unilever Foods business, about 80% of it operates standalone. They're all there in Baltimore continuing the blueprinting work that we have to do. they're all there in baltimore continuing the blueprinting work that we have to do That backs up a meeting they had four weeks ago in London to do the very same thing. that backs up a meeting they had four weeks ago in london to do the very same thing The amount of engagement is very deep, very strong. the amount of engagement is very deep very strong Overall, think about this as more than 200 people combined between both companies dedicated to really executing this integration and planning for it. overall think about this as more than 200 people combined between both companies dedicated to really executing this integration and planning for it That includes every function and business process that we're looking at right now. that includes every function and business process that we're looking at right now I think second, it's important to really define sort of the complexity that we're looking at, across this transaction. i think second it's important to really define sort of the complexity that we're looking at across this transaction From a carve-out perspective, think about this business coming away from the whole Unilever company. from a carve-out perspective think about this business coming away from the whole unilever company The Unilever Foods business, about 80% of it operates standalone. the unilever foods business about 80% of it operates standalone That's your sales organization, its R&D, its supply chain, effectively how they execute and really execute and market. That gives us a lot of confidence being able to sort of think about the difficulty of separating it out from the Unilever Foods organization. About 20% is coming through what is their One Unilever part of their organization. That's going to take us a little bit more work just to make sure that we figure that out. Just to provide other context, we're really making progress on mapping market by market where we see this integration moving. Right now, 75% of the sales of the combined company come from 10 markets. The top six are the United States, China, U.K., France, Mexico, Canada. Those six, we already operate directly, both of us do, at scale. That's your sales organization, its R&D, its supply chain, effectively how they execute and really execute and market. that's your sales organization its r&d its supply chain effectively how they execute and really execute and market That gives us a lot of confidence being able to sort of think about the difficulty of separating it out from the Unilever Foods organization. that gives us a lot of confidence being able to sort of think about the difficulty of separating it out from the unilever foods organization About 20% is coming through what is their One Unilever part of their organization. about 20% is coming through what is their one unilever part of their organization That's going to take us a little bit more work just to make sure that we figure that out. that's going to take us a little bit more work just to make sure that we figure that out Just to provide other context, we're really making progress on mapping market by market where we see this integration moving. just to provide other context we're really making progress on mapping market by market where we see this integration moving Right now, 75% of the sales of the combined company come from 10 markets. right now 75% of the sales of the combined company come from 10 markets The top six are the United States, China, U.K., France, Mexico, Canada. the top six are the united states china u.k france mexico canada Those six, we already operate directly, both of us do, at scale. those six we already operate directly both of us do at scale That's going to get a lot of attention in terms of how we think about the integration in those top six markets and how we'll execute that. The other four, Brazil, the Philippines, Indonesia, and Germany, we don't really have a direct presence. That's going to really acquire a different approach and sort of be more of a lift-and-shift type thinking and mentality. Also, those are markets where we don't have real McCormick brand presence, too. We'll also have a lot of planning going on to think about what is the right way to kind of launch those plants into the market. TSA agreements will be in place, and then when we look at other three work streams I think are critically important, obviously synergies. That's going to get a lot of attention in terms of how we think about the integration in those top six markets and how we'll execute that. that's going to get a lot of attention in terms of how we think about the integration in those top six markets and how we'll execute that The other four, Brazil, the Philippines, Indonesia, and Germany, we don't really have a direct presence. the other four brazil the philippines indonesia and germany we don't really have a direct presence That's going to really acquire a different approach and sort of be more of a lift-and-shift type thinking and mentality. that's going to really acquire a different approach and sort of be more of a lift-and-shift type thinking and mentality Also, those are markets where we don't have real McCormick brand presence, too. also those are markets where we don't have real mccormick brand presence too We'll also have a lot of planning going on to think about what is the right way to kind of launch those plants into the market. we'll also have a lot of planning going on to think about what is the right way to kind of launch those plants into the market TSA agreements will be in place, and then when we look at other three work streams I think are critically important, obviously synergies. tsa agreements will be in place and then when we look at other three work streams i think are critically important obviously synergies What you'll hear from us at the end of the third quarter, is we're going to provide more detail on how we're looking at synergies overall. We're already now into the second phase of that planning, and our level of confidence is rising on that. From a growth standpoint, we're having similar work going on. At the end of the third quarter, we'll be providing more context around that, too. Again, that's really important work that we want to kind of really have advanced work on before we hit close. What you'll hear from us at the end of the third quarter, is we're going to provide more detail on how we're looking at synergies overall. what you'll hear from us at the end of the third quarter is we're going to provide more detail on how we're looking at synergies overall We're already now into the second phase of that planning, and our level of confidence is rising on that. we're already now into the second phase of that planning and our level of confidence is rising on that From a growth standpoint, we're having similar work going on. from a growth standpoint we're having similar work going on At the end of the third quarter, we'll be providing more context around that, too. at the end of the third quarter we'll be providing more context around that too Again, that's really important work that we want to kind of really have advanced work on before we hit close. again that's really important work that we want to kind of really have advanced work on before we hit close

Speaker 3: Yeah. Yeah. yeah

Speaker 1: Lastly, we have a culture work stream, which I think is very important because cultural alignment, as many of you know, is really critical in any big combination. That work is important. We're starting from a standpoint of a lot of commonality. I've already myself been in front of the Unilever organization in some rather large settings. Last week on Thursday, we were in Rotterdam and spoke to about 5,000 Unilever employees. Lastly, we have a culture work stream, which I think is very important because cultural alignment, as many of you know, is really critical in any big combination. lastly we have a culture work stream which i think is very important because cultural alignment as many of you know is really critical in any big combination That work is important. that work is important We're starting from a standpoint of a lot of commonality. we're starting from a standpoint of a lot of commonality I've already myself been in front of the Unilever organization in some rather large settings. i've already myself been in front of the unilever organization in some rather large settings Last week on Thursday, we were in Rotterdam and spoke to about 5,000 Unilever employees. last week on thursday we were in rotterdam and spoke to about 5,000 unilever employees Really shared with them kind of our ways of working, the way we would describe our culture. I think it really put a little bit of comfort in the minds of employees in terms of, okay, who is this McCormick team and how do they operate, and how do they think about the food business. How do they think about driving the business overall? We did a similar thing in New Jersey three weeks ago. Spoke to the whole U.S. organization. We're getting out there, we're getting a chance to meet the organization, and I really am excited about this culture work stream, too. Really shared with them kind of our ways of working, the way we would describe our culture. really shared with them kind of our ways of working the way we would describe our culture I think it really put a little bit of comfort in the minds of employees in terms of, okay, who is this McCormick team and how do they operate, and how do they think about the food business. i think it really put a little bit of comfort in the minds of employees in terms of okay who is this mccormick team and how do they operate and how do they think about the food business How do they think about driving the business overall? how do they think about driving the business overall We did a similar thing in New Jersey three weeks ago. we did a similar thing in new jersey three weeks ago Spoke to the whole U.S. organization. spoke to the whole u.s organization We're getting out there, we're getting a chance to meet the organization, and I really am excited about this culture work stream, too. we're getting out there we're getting a chance to meet the organization and i really am excited about this culture work stream too

Speaker 3: Okay. I'm excited about the 3Q call now. Okay. okay I'm excited about the 3Q call now. i'm excited about the 3q call now

Speaker 1: Yes. Yes. yes

Speaker 3: You mentioned the 3%-5% targeted growth as you think out a couple of years. When you think about all the different levers to unlock incremental growth, what are the top call-outs for you? You mentioned the 3%-5% targeted growth as you think out a couple of years. you mentioned the 3%-5% targeted growth as you think out a couple of years When you think about all the different levers to unlock incremental growth, what are the top call-outs for you? when you think about all the different levers to unlock incremental growth what are the top call-outs for you

Speaker 1: There's a lot to be excited about. I'm going to start maybe to provide context around this, just with sort of a summary way of me thinking about it, and then I'll unpack it a little bit. This is a portfolio with very strong brands who are operating in categories with really good global growth. Those categories really benefit from structural consumer trends. You combine that with a best-in-class go-to-market footprint at both a global level and a channel level, you combine that together, we see a lot of incremental growth opportunities overall. I think what's first important to unpack is just really the categories in which we operate in. From the McCormick side, we're bringing in a lot of expertise in herb, spices, and seasonings, hot sauce, mustard, and we've demonstrated a lot of growth in those categories, certainly over time. There's a lot to be excited about. there's a lot to be excited about I'm going to start maybe to provide context around this, just with sort of a summary way of me thinking about it, and then I'll unpack it a little bit. i'm going to start maybe to provide context around this just with sort of a summary way of me thinking about it and then i'll unpack it a little bit This is a portfolio with very strong brands who are operating in categories with really good global growth. this is a portfolio with very strong brands who are operating in categories with really good global growth Those categories really benefit from structural consumer trends. those categories really benefit from structural consumer trends You combine that with a best-in-class go-to-market footprint at both a global level and a channel level, you combine that together, we see a lot of incremental growth opportunities overall. you combine that with a best-in-class go-to-market footprint at both a global level and a channel level you combine that together we see a lot of incremental growth opportunities overall I think what's first important to unpack is just really the categories in which we operate in. i think what's first important to unpack is just really the categories in which we operate in From the McCormick side, we're bringing in a lot of expertise in herb, spices, and seasonings, hot sauce, mustard, and we've demonstrated a lot of growth in those categories, certainly over time. from the mccormick side we're bringing in a lot of expertise in herb spices and seasonings hot sauce mustard and we've demonstrated a lot of growth in those categories certainly over time Unilever's bringing in a real expertise in mayonnaise and bouillon and other cooking aids, and they're really seeing a lot of growth from their portfolio and category. As I've been meeting with investors, I think it's important to sort of just double-click a little bit on mayonnaise and bouillon and the categories that Unilever's bringing to this combined portfolio. Mayonnaise is a very healthy category at a global level. It's been experiencing really strong growth. It also has projected strong growth. What I think is really important is it's growing not only in the core and mainstream varieties of the category. Unilever's bringing in a real expertise in mayonnaise and bouillon and other cooking aids, and they're really seeing a lot of growth from their portfolio and category. unilever's bringing in a real expertise in mayonnaise and bouillon and other cooking aids and they're really seeing a lot of growth from their portfolio and category As I've been meeting with investors, I think it's important to sort of just double-click a little bit on mayonnaise and bouillon and the categories that Unilever's bringing to this combined portfolio. as i've been meeting with investors i think it's important to sort of just double-click a little bit on mayonnaise and bouillon and the categories that unilever's bringing to this combined portfolio Mayonnaise is a very healthy category at a global level. It's been experiencing really strong growth. mayonnaise is a very healthy category at a global level. it's been experiencing really strong growth It also has projected strong growth. it also has projected strong growth What I think is really important is it's growing not only in the core and mainstream varieties of the category. what i think is really important is it's growing not only in the core and mainstream varieties of the category It's also growing because you're looking at some of those areas where the health and wellness cues that consumers are looking for, like a different kind of oil or lower in fat. Both of those together are driving volume growth. We also see younger consumers are really expanding the usage of mayonnaise, too. It's very relevant with younger generations. Bouillon, are also seeing a lot of other aspects of what really drives, I think, the trends behind that part of the category, too. This is something which is seeing a lot of strong global trends. It's really, I think, driven by the fact that we see a lot of urbanization right now. It's also growing because you're looking at some of those areas where the health and wellness cues that consumers are looking for, like a different kind of oil or lower in fat. it's also growing because you're looking at some of those areas where the health and wellness cues that consumers are looking for like a different kind of oil or lower in fat Both of those together are driving volume growth. both of those together are driving volume growth We also see younger consumers are really expanding the usage of mayonnaise, too. we also see younger consumers are really expanding the usage of mayonnaise too It's very relevant with younger generations. it's very relevant with younger generations Bouillon, are also seeing a lot of other aspects of what really drives, I think, the trends behind that part of the category, too. bouillon are also seeing a lot of other aspects of what really drives i think the trends behind that part of the category too This is something which is seeing a lot of strong global trends. this is something which is seeing a lot of strong global trends It's really, I think, driven by the fact that we see a lot of urbanization right now. it's really i think driven by the fact that we see a lot of urbanization right now Sort of more participation in the workforce, particularly in markets like in Latin America and Asia. Those time-saving convenience needs of how you kind of put a meal on the table, especially ones that require low simmer cooking, these are shortcuts, and they're really value-added, and they're really a great value. We're seeing a lot of growth there, too. Overall, I think that the trends in the marketplace really do support this category that we're combining with McCormick, and I think that's quite exciting. On the channel side and the geographic side, that whole go-to-market footprint that I've been talking about, it just is a really great balance between developed and emerging market exposure. Sort of more participation in the workforce, particularly in markets like in Latin America and Asia. sort of more participation in the workforce particularly in markets like in latin america and asia Those time-saving convenience needs of how you kind of put a meal on the table, especially ones that require low simmer cooking, these are shortcuts, and they're really value-added, and they're really a great value. those time-saving convenience needs of how you kind of put a meal on the table especially ones that require low simmer cooking these are shortcuts and they're really value-added and they're really a great value We're seeing a lot of growth there, too. we're seeing a lot of growth there too Overall, I think that the trends in the marketplace really do support this category that we're combining with McCormick, and I think that's quite exciting. overall i think that the trends in the marketplace really do support this category that we're combining with mccormick and i think that's quite exciting On the channel side and the geographic side, that whole go-to-market footprint that I've been talking about, it just is a really great balance between developed and emerging market exposure. on the channel side and the geographic side that whole go-to-market footprint that i've been talking about it just is a really great balance between developed and emerging market exposure It certainly changes McCormick's view from a concentration standpoint. 60% of our business today comes from North America. In the future, it's going to be a third, and the rest of that comes from a more balanced geography. We have a lot of great channel presence, both in the consumer and food service channels. I would say in food service, everyone, I think, really has an appreciation for our presentation and our presence in consumer. The one that I think probably needs more airtime is almost food service. It certainly changes McCormick's view from a concentration standpoint. 60% of our business today comes from North America. it certainly changes mccormick's view from a concentration standpoint 60% of our business today comes from north america In the future, it's going to be a third, and the rest of that comes from a more balanced geography. in the future it's going to be a third and the rest of that comes from a more balanced geography We have a lot of great channel presence, both in the consumer and food service channels. we have a lot of great channel presence both in the consumer and food service channels I would say in food service, everyone, I think, really has an appreciation for our presentation and our presence in consumer. i would say in food service everyone i think really has an appreciation for our presentation and our presence in consumer The one that I think probably needs more airtime is almost food service. the one that i think probably needs more airtime is almost food service Both companies have genuine strengths in their go-to-market models there. When you bring those together, there's a lot of cross-selling opportunity, a lot of geographic expansion opportunity also in food service. Lastly, I'll just wrap up. It's our brands. We have very strong global brands in Hellmann's, McCormick, Knorr, and those brands have proven to be relevant with younger households. We have a strong global marketing organization in both companies, and when we bring that together, I think our ability to really drive relevance with new consumer households is really important. On top of that, there are at least a handful of brands that we believe have real potential at a global level. Both companies have genuine strengths in their go-to-market models there. both companies have genuine strengths in their go-to-market models there When you bring those together, there's a lot of cross-selling opportunity, a lot of geographic expansion opportunity also in food service. when you bring those together there's a lot of cross-selling opportunity a lot of geographic expansion opportunity also in food service Lastly, I'll just wrap up. lastly i'll just wrap up It's our brands. it's our brands We have very strong global brands in Hellmann's, McCormick, Knorr, and those brands have proven to be relevant with younger households. we have very strong global brands in hellmann's mccormick knorr and those brands have proven to be relevant with younger households We have a strong global marketing organization in both companies, and when we bring that together, I think our ability to really drive relevance with new consumer households is really important. we have a strong global marketing organization in both companies and when we bring that together i think our ability to really drive relevance with new consumer households is really important On top of that, there are at least a handful of brands that we believe have real potential at a global level. on top of that there are at least a handful of brands that we believe have real potential at a global level A brand like Maille or Cholula or Frank's RedHot have a lot of upside growth, but they just need investment to keep growing and kind of getting introduced to new markets. A brand like Maille or Cholula or Frank's RedHot have a lot of upside growth, but they just need investment to keep growing and kind of getting introduced to new markets. a brand like maille or cholula or frank's redhot have a lot of upside growth but they just need investment to keep growing and kind of getting introduced to new markets

Speaker 3: Yeah. Okay. Marcos, Brendan mentioned the evolving geographic footprint, more emerging markets. With that comes better prospects for normalized organic growth. I've also heard a little bit of concern from McCormick shareholders that, wow, this is going to increase our exposure to a lot of volatility. Volatility in consumer trends, volatility in FX. How do you think about that balance? Yeah. yeah Okay. okay Marcos, Brendan mentioned the evolving geographic footprint, more emerging markets. marcos brendan mentioned the evolving geographic footprint more emerging markets With that comes better prospects for normalized organic growth. with that comes better prospects for normalized organic growth I've also heard a little bit of concern from McCormick shareholders that, wow, this is going to increase our exposure to a lot of volatility. i've also heard a little bit of concern from mccormick shareholders that wow this is going to increase our exposure to a lot of volatility Volatility in consumer trends, volatility in FX. volatility in consumer trends volatility in fx How do you think about that balance? how do you think about that balance

Speaker 2: This is another exciting part of the combination, which is expanding into emerging markets, which is an attractive growth potential for McCormick. Expanding in emerging market has always been our intention since when we announced Investor Day back in 2024. This transaction actually accelerates that plan. It provides immediate scale and distribution that otherwise would take decades as brand [animation] to achieve. Unilever brand building capacity over the years in those emerging markets have been great. Markets like Philippines, Indonesia, other markets, but there are still opportunities within Latin America, Asia, and Middle East. This is another exciting part of the combination, which is expanding into emerging markets, which is an attractive growth potential for McCormick. this is another exciting part of the combination which is expanding into emerging markets which is an attractive growth potential for mccormick Expanding in emerging market has always been our intention since when we announced Investor Day back in 2024. expanding in emerging market has always been our intention since when we announced investor day back in 2024 This transaction actually accelerates that plan. this transaction actually accelerates that plan It provides immediate scale and distribution that otherwise would take decades as brand [animation] to achieve. it provides immediate scale and distribution that otherwise would take decades as brand [animation] to achieve Unilever brand building capacity over the years in those emerging markets have been great. unilever brand building capacity over the years in those emerging markets have been great Markets like Philippines, Indonesia, other markets, but there are still opportunities within Latin America, Asia, and Middle East. markets like philippines indonesia other markets but there are still opportunities within latin america asia and middle east We believe that this is very attractive from a growing population perspective as well, and rising middle classes in those markets. We see higher long-term demand environment building across emerging markets. If you think about Knorr as a global brand, $5 billion global brand with high consumer awareness and high growth margin, and emerging market exposure, that is an awesome brand for us to have. Now, we do have both decades of experience both companies, decades of experience in managing emerging markets. McCormick has been in emerging markets. Right now, not at the same scale as Unilever. A big part of my career has been operating in emerging markets as well. From the standpoint of managing the risks, and I would think about the currency risks and the inflationary risks that comes by managing those markets. First, we'll be doing this for a long time, managing those risks. We believe that this is very attractive from a growing population perspective as well, and rising middle classes in those markets. we believe that this is very attractive from a growing population perspective as well and rising middle classes in those markets We see higher long-term demand environment building across emerging markets. we see higher long-term demand environment building across emerging markets If you think about Knorr as a global brand, $5 billion global brand with high consumer awareness and high growth margin, and emerging market exposure, that is an awesome brand for us to have. if you think about knorr as a global brand $5 billion global brand with high consumer awareness and high growth margin and emerging market exposure that is an awesome brand for us to have Now, we do have both decades of experience both companies, decades of experience in managing emerging markets. now we do have both decades of experience both companies decades of experience in managing emerging markets McCormick has been in emerging markets. mccormick has been in emerging markets Right now, not at the same scale as Unilever. right now not at the same scale as unilever A big part of my career has been operating in emerging markets as well. a big part of my career has been operating in emerging markets as well From the standpoint of managing the risks, and I would think about the currency risks and the inflationary risks that comes by managing those markets. from the standpoint of managing the risks and i would think about the currency risks and the inflationary risks that comes by managing those markets First, we'll be doing this for a long time, managing those risks. first we'll be doing this for a long time managing those risks I would describe that the transaction exposure risk is one that the combined company likely to have a more of a natural hedge. As a significant portion of our operations, we manufacture where we sell, so we're going to see that from the FX perspective. From the inflation perspective, we'll continue to leverage our playbook, which is revenue growth management, price pack architecture designed for local usage, the simplification of a portfolio, which is essential, especially when you are selling through traditional trade in those markets. Then obviously our CCI program. One of the things that I learned over the years in managing these markets is about speed and agility. They are essential in getting in front of those impacts and be able to mitigate them. In addition to that, I would say that Unilever Foods bringing a lot of talent and expertise in those markets. I would describe that the transaction exposure risk is one that the combined company likely to have a more of a natural hedge. i would describe that the transaction exposure risk is one that the combined company likely to have a more of a natural hedge As a significant portion of our operations, we manufacture where we sell, so we're going to see that from the FX perspective. as a significant portion of our operations we manufacture where we sell so we're going to see that from the fx perspective From the inflation perspective, we'll continue to leverage our playbook, which is revenue growth management, price pack architecture designed for local usage, the simplification of a portfolio, which is essential, especially when you are selling through traditional trade in those markets. from the inflation perspective we'll continue to leverage our playbook which is revenue growth management price pack architecture designed for local usage the simplification of a portfolio which is essential especially when you are selling through traditional trade in those markets Then obviously our CCI program. then obviously our cci program One of the things that I learned over the years in managing these markets is about speed and agility. one of the things that i learned over the years in managing these markets is about speed and agility They are essential in getting in front of those impacts and be able to mitigate them. they are essential in getting in front of those impacts and be able to mitigate them In addition to that, I would say that Unilever Foods bringing a lot of talent and expertise in those markets. in addition to that i would say that unilever foods bringing a lot of talent and expertise in those markets They will be part of our larger organization and bringing that expertise in. Overall, I would say, emerging markets moving from 25% today to 40% in the future. They will be part of our larger organization and bringing that expertise in. they will be part of our larger organization and bringing that expertise in Overall, I would say, emerging markets moving from 25% today to 40% in the future. overall i would say emerging markets moving from 25% today to 40% in the future

Speaker 3: Yep. Yep. yep

Speaker 2: Actually, it's a growth opportunity for us without taking excessive risk. I think it mitigates an excessive risk. Yeah. Actually, it's a growth opportunity for us without taking excessive risk. actually it's a growth opportunity for us without taking excessive risk I think it mitigates an excessive risk. i think it mitigates an excessive risk Yeah. yeah

Speaker 3: Okay. To go after all those growth opportunities, you've been clear that there's a good amount of synergy, but there's a good amount of reinvestment. How should we all think about the balance between margin expansion and reinvestment as priorities in the first couple of years post-integration? Okay. okay To go after all those growth opportunities, you've been clear that there's a good amount of synergy, but there's a good amount of reinvestment. to go after all those growth opportunities you've been clear that there's a good amount of synergy but there's a good amount of reinvestment How should we all think about the balance between margin expansion and reinvestment as priorities in the first couple of years post-integration? how should we all think about the balance between margin expansion and reinvestment as priorities in the first couple of years post-integration

Speaker 2: Both Unilever and McCormick, especially over the last few years, have been very consistent in terms of using the playbook of margin expansion and invest back in terms of brand marketing to drive top-line growth and operating margin expansion. Put simply, we're not going to compromise growth at the expense of margin expansion. We are going to continue to invest in organic growth and brand marketing. Over the last three years, Unilever has been investing about 8% of net sales on a comparable basis to our 7% of our consumer segment, and we'll continue to do that. At least that is the baseline to work from and likely to continue to invest more in the future. Unilever Foods achieved their operating margin profile by historically expanding gross margin and again, investing back in those brands, especially those big brands, Knorr and Hellmann's, over the years. Both Unilever and McCormick, especially over the last few years, have been very consistent in terms of using the playbook of margin expansion and invest back in terms of brand marketing to drive top-line growth and operating margin expansion. both unilever and mccormick especially over the last few years have been very consistent in terms of using the playbook of margin expansion and invest back in terms of brand marketing to drive top-line growth and operating margin expansion Put simply, we're not going to compromise growth at the expense of margin expansion. put simply we're not going to compromise growth at the expense of margin expansion We are going to continue to invest in organic growth and brand marketing. we are going to continue to invest in organic growth and brand marketing Over the last three years, Unilever has been investing about 8% of net sales on a comparable basis to our 7% of our consumer segment, and we'll continue to do that. over the last three years unilever has been investing about 8% of net sales on a comparable basis to our 7% of our consumer segment and we'll continue to do that At least that is the baseline to work from and likely to continue to invest more in the future. at least that is the baseline to work from and likely to continue to invest more in the future Unilever Foods achieved their operating margin profile by historically expanding gross margin and again, investing back in those brands, especially those big brands, Knorr and Hellmann's, over the years. unilever foods achieved their operating margin profile by historically expanding gross margin and again investing back in those brands especially those big brands knorr and hellmann's over the years

Speaker 3: Okay. Okay. okay

Speaker 2: Over the first couple of years, the plan will remain consistent. We plan to gradually expand operating margins while continuing to invest behind our brands to drive the long-term growth. The margins will come from volume growth, revenue growth management, and cost synergies. Those are the kind of the three elements that will help us enable gross margin expansion and then invest back in brand marketing. Over the first couple of years, the plan will remain consistent. over the first couple of years the plan will remain consistent We plan to gradually expand operating margins while continuing to invest behind our brands to drive the long-term growth. we plan to gradually expand operating margins while continuing to invest behind our brands to drive the long-term growth The margins will come from volume growth, revenue growth management, and cost synergies. the margins will come from volume growth revenue growth management and cost synergies Those are the kind of the three elements that will help us enable gross margin expansion and then invest back in brand marketing. those are the kind of the three elements that will help us enable gross margin expansion and then invest back in brand marketing

Speaker 3: Great. You talked about EPS accretion from the deal. Brendan mentioned the promise of a pretty powerful free cash flow. Maybe ground us in sort of your base case expectations on both those fronts, and then what are the key variables to keep in mind as you think about upside or potential risk around those fronts? Great. great You talked about EPS accretion from the deal. you talked about eps accretion from the deal Brendan mentioned the promise of a pretty powerful free cash flow. brendan mentioned the promise of a pretty powerful free cash flow Maybe ground us in sort of your base case expectations on both those fronts, and then what are the key variables to keep in mind as you think about upside or potential risk around those fronts? maybe ground us in sort of your base case expectations on both those fronts and then what are the key variables to keep in mind as you think about upside or potential risk around those fronts

Speaker 2: When we think about sensitivities, the way that I look at this is there is two key aspects of sensitivities within the financial model. One is growth, and the other one is around the speed of achieving savings or the synergies. In terms of top-line growth, what supports the year three projections is the continued growth of the categories in which we are in, plus our track record of driving growth. If you think about our financial model, the financial model works for us in the range of 3%-4% the financial model work for us. Right. On synergies, we expect to realize the $600 million synergies, as we said before. That puts us in the middle of the range of 23%-25% operating margin, so about 24% operating margin. When we think about sensitivities, the way that I look at this is there is two key aspects of sensitivities within the financial model. when we think about sensitivities the way that i look at this is there is two key aspects of sensitivities within the financial model One is growth, and the other one is around the speed of achieving savings or the synergies. one is growth and the other one is around the speed of achieving savings or the synergies In terms of top-line growth, what supports the year three projections is the continued growth of the categories in which we are in, plus our track record of driving growth. in terms of top-line growth what supports the year three projections is the continued growth of the categories in which we are in plus our track record of driving growth If you think about our financial model, the financial model works for us in the range of 3%-4% the financial model work for us. if you think about our financial model the financial model works for us in the range of 3%-4% the financial model work for us Right. right On synergies, we expect to realize the $600 million synergies, as we said before. on synergies we expect to realize the $600 million synergies as we said before That puts us in the middle of the range of 23%-25% operating margin, so about 24% operating margin. that puts us in the middle of the range of 23%-25% operating margin so about 24% operating margin

Speaker 3: Okay. Okay. okay

Speaker 2: The sensitivity around synergies is really the speed in which we'll be delivering the synergies. At this time, we said that about 2/3 of the synergies to be realized by year two and the remaining by year three. EPS accretion, we talked about it as a consequence of the P&L. EPS accretion we said to be in the mid to high teens in year three, post synergies. First full year to be mid to high single digits. We continue to feel confident about those numbers. That's the P&L. Moving into the cash component, I think is important as well to talk about, and the capital allocation. CAPEX, we talked about 3% of net sales or above $700 million of investments. The sensitivity around synergies is really the speed in which we'll be delivering the synergies. the sensitivity around synergies is really the speed in which we'll be delivering the synergies At this time, we said that about 2/3 of the synergies to be realized by year two and the remaining by year three. at this time we said that about 2/3 of the synergies to be realized by year two and the remaining by year three EPS accretion, we talked about it as a consequence of the P&L. eps accretion we talked about it as a consequence of the p&l EPS accretion we said to be in the mid to high teens in year three, post synergies. eps accretion we said to be in the mid to high teens in year three post synergies First full year to be mid to high single digits. first full year to be mid to high single digits We continue to feel confident about those numbers. we continue to feel confident about those numbers That's the P&L. that's the p&l Moving into the cash component, I think is important as well to talk about, and the capital allocation. moving into the cash component i think is important as well to talk about and the capital allocation CAPEX, we talked about 3% of net sales or above $700 million of investments. capex we talked about 3% of net sales or above $700 million of investments We intend to maintain and grow our dividends policies that we have been doing within McCormick. That is going to be the case going forward. We have a very focused mindset to delever from the at or below 4x at close to 3x within two years. To unpack a little bit about the deleveraging plans, I think that's important to talk about. I would say, first, both companies start from a position of strength, both in terms of profit and cash flow generations, even though navigating difficult environments as we have been. The combined company expect to have operating margins of 21% and working capital benefits that drives 100% of free cash flow conversion to net income, which is very solid. We intend to maintain and grow our dividends policies that we have been doing within McCormick. we intend to maintain and grow our dividends policies that we have been doing within mccormick That is going to be the case going forward. that is going to be the case going forward We have a very focused mindset to delever from the at or below 4x at close to 3x within two years. we have a very focused mindset to delever from the at or below 4x at close to 3x within two years To unpack a little bit about the deleveraging plans, I think that's important to talk about. to unpack a little bit about the deleveraging plans i think that's important to talk about I would say, first, both companies start from a position of strength, both in terms of profit and cash flow generations, even though navigating difficult environments as we have been. i would say first both companies start from a position of strength both in terms of profit and cash flow generations even though navigating difficult environments as we have been The combined company expect to have operating margins of 21% and working capital benefits that drives 100% of free cash flow conversion to net income, which is very solid. the combined company expect to have operating margins of 21% and working capital benefits that drives 100% of free cash flow conversion to net income which is very solid

Speaker 3: Right from the start. Right from the start. right from the start

Speaker 2: Right from the start. Right from the start. right from the start

Speaker 3: Yeah. Yeah. yeah

Speaker 2: Right. Post-close, we expect to invest in the business and drive margin expansion. Our year three delevering projections are based on the low end of the operating margin range that we gave. After all the investments, you think about brand investments, cost to achieve synergies, dividends, we anticipate having $1.5 billion-$2 billion of cash to pay down debt within the first two years. It is a very solid P&L, a very solid cash flow generation, allow us to pay dividends, allow us to invest in CAPEX, and we still have $1.5 billion-$2 billion of cash left to pay down debt and get to 3x at year two. Right. right Post-close, we expect to invest in the business and drive margin expansion. post-close we expect to invest in the business and drive margin expansion Our year three delevering projections are based on the low end of the operating margin range that we gave. our year three delevering projections are based on the low end of the operating margin range that we gave After all the investments, you think about brand investments, cost to achieve synergies, dividends, we anticipate having $1.5 billion-$2 billion of cash to pay down debt within the first two years. after all the investments you think about brand investments cost to achieve synergies dividends we anticipate having $1.5 billion-$2 billion of cash to pay down debt within the first two years It is a very solid P&L, a very solid cash flow generation, allow us to pay dividends, allow us to invest in CAPEX, and we still have $1.5 billion-$2 billion of cash left to pay down debt and get to 3x at year two. it is a very solid p&l a very solid cash flow generation allow us to pay dividends allow us to invest in capex and we still have $1.5 billion-$2 billion of cash left to pay down debt and get to 3x at year two

Speaker 3: Okay, perfect. Brendan, I think every time you've spoken since the deal, we've learned more, including today. I think the disclosure has been pretty continuous. You teased the 3Q updates as well. When we think about the path to roundabout mid-2027 close, how should we think about the milestones of further disclosure as we march toward that end goal? Okay, perfect. okay perfect Brendan, I think every time you've spoken since the deal, we've learned more, including today. brendan i think every time you've spoken since the deal we've learned more including today I think the disclosure has been pretty continuous. i think the disclosure has been pretty continuous You teased the 3 Q updates as well. you teased the 3 q updates as well When we think about the path to roundabout mid-2027 close, how should we think about the milestones of further disclosure as we march toward that end goal? when we think about the path to roundabout mid-2027 close how should we think about the milestones of further disclosure as we march toward that end goal

Speaker 1: The timeline until close on this transaction is really driven by the legal and regulatory processes for the carve-out and also the combination. The timeline until close on this transaction is really driven by the legal and regulatory processes for the carve-out and also the combination. the timeline until close on this transaction is really driven by the legal and regulatory processes for the carve-out and also the combination

Speaker 3: Yep. Yep. yep

Speaker 1: We see that as pretty typical for this type of structure and transaction and scale of it overall. We will use that time to our advantage to just really complete very rigorous planning overall, and we're moving with intent on all of those areas. I think in terms of milestones, what I think is important to share is kind of let's set the expectations as follows. By the end of July we'll be able to share a location of the secondary listing. We see that as pretty typical for this type of structure and transaction and scale of it overall. we see that as pretty typical for this type of structure and transaction and scale of it overall We will use that time to our advantage to just really complete very rigorous planning overall, and we're moving with intent on all of those areas. we will use that time to our advantage to just really complete very rigorous planning overall and we're moving with intent on all of those areas I think in terms of milestones, what I think is important to share is kind of let's set the expectations as follows. i think in terms of milestones what i think is important to share is kind of let's set the expectations as follows By the end of July we'll be able to share a location of the secondary listing. by the end of july we'll be able to share a location of the secondary listing

Speaker 3: Okay. Okay. okay

Speaker 1: We'll be able to do that. I think it'll be important for investors to know what that will be, and so we'll obviously make sure that we share that as quickly as we can. By the end of the third quarter, there are four things we want to be able to share more detail on. The first is the combined company's target operating model. We'll be able to do that. we'll be able to do that I think it'll be important for investors to know what that will be, and so we'll obviously make sure that we share that as quickly as we can. i think it'll be important for investors to know what that will be and so we'll obviously make sure that we share that as quickly as we can By the end of the third quarter, there are four things we want to be able to share more detail on. by the end of the third quarter there are four things we want to be able to share more detail on The first is the combined company's target operating model. the first is the combined company's target operating model

Speaker 3: Hmm-mm. Hmm-mm. hmm-mm

Speaker 1: Think about how's this company going to run? How's it choosing to operate? What will be the leadership roles within that top structure? We'll be able to share that, and I think that's also important to frame how we're viewing how we're running the business. The second area is providing more color on cost synergies and the implementation plan, so we'll be able to do more of that. As I said, we're already in our second phase, and we feel like our confidence is increasing on at least hitting the numbers that we talked about overall. The fourth thing is we'll have a refined view of how we're looking at growth synergies. I've already shared a lot today. Great color, but maybe we can provide a little bit more substance on how we're seeing it, maybe even down to a market level. Think about how's this company going to run? think about how's this company going to run How's it choosing to operate? how's it choosing to operate What will be the leadership roles within that top structure? what will be the leadership roles within that top structure We'll be able to share that, and I think that's also important to frame how we're viewing how we're running the business. we'll be able to share that and i think that's also important to frame how we're viewing how we're running the business The second area is providing more color on cost synergies and the implementation plan, so we'll be able to do more of that. the second area is providing more color on cost synergies and the implementation plan so we'll be able to do more of that As I said, we're already in our second phase, and we feel like our confidence is increasing on at least hitting the numbers that we talked about overall. as i said we're already in our second phase and we feel like our confidence is increasing on at least hitting the numbers that we talked about overall The fourth thing is we'll have a refined view of how we're looking at growth synergies. the fourth thing is we'll have a refined view of how we're looking at growth synergies I've already shared a lot today. i've already shared a lot today Great color, but maybe we can provide a little bit more substance on how we're seeing it, maybe even down to a market level. great color but maybe we can provide a little bit more substance on how we're seeing it maybe even down to a market level Then lastly, the fourth thing we'll share is more of a defined scope on the TSA plans. Then lastly, the fourth thing we'll share is more of a defined scope on the TSA plans. then lastly the fourth thing we'll share is more of a defined scope on the tsa plans

Speaker 3: Yep. Yep. yep

Speaker 1: That'll be specifically around IT distribution, go to market. Work streams are fully underway to do both supporting the carve-out financials as well as the regulatory filings. Those are working in parallel. We'll be able to share more context around that timing when we get to the end of the third quarter. That'll be specifically around IT distribution, go to market. that'll be specifically around it distribution go to market Work streams are fully underway to do both supporting the carve-out financials as well as the regulatory filings. work streams are fully underway to do both supporting the carve-out financials as well as the regulatory filings Those are working in parallel. those are working in parallel We'll be able to share more context around that timing when we get to the end of the third quarter. we'll be able to share more context around that timing when we get to the end of the third quarter

Speaker 3: Okay. Okay. okay

Speaker 1: Those are type of the long lead items that we've got overall. Depending on Unilever's carve-out timeline and those financials, that will then sort of dictate when we do shareholder vote, and then that'll probably be much closer to close overall. Those are type of the long lead items that we've got overall. those are type of the long lead items that we've got overall Depending on Unilever's carve-out timeline and those financials, that will then sort of dictate when we do shareholder vote, and then that'll probably be much closer to close overall. depending on unilever's carve-out timeline and those financials that will then sort of dictate when we do shareholder vote and then that'll probably be much closer to close overall

Speaker 3: Okay. Okay. okay

Speaker 1: I think our goal is to really continue building investor confidence by sharing regularly updates and more details in terms of how we're looking at our planning. The point is to show the sort of the match to what we said, right? Really sort of make sure we generate confidence there. At the same time, it's really about operating our current business and achieving our goals for 2026. I think our goal is to really continue building investor confidence by sharing regularly updates and more details in terms of how we're looking at our planning. i think our goal is to really continue building investor confidence by sharing regularly updates and more details in terms of how we're looking at our planning The point is to show the sort of the match to what we said, right? the point is to show the sort of the match to what we said right Really sort of make sure we generate confidence there. really sort of make sure we generate confidence there At the same time, it's really about operating our current business and achieving our goals for 2026. at the same time it's really about operating our current business and achieving our goals for 2026

Speaker 3: Okay, perfect. The secondary listing, Marcos, one thing that has been a kind of a perpetual question or concern is just flow back dynamics. Okay, perfect. okay perfect The secondary listing, Marcos, one thing that has been a kind of a perpetual question or concern is just flow back dynamics. the secondary listing marcos one thing that has been a kind of a perpetual question or concern is just flow back dynamics

Speaker 2: Yeah. Yeah. yeah

Speaker 3: In terms of certain U.K.-based or European investors being forced to sell post-close, how are you thinking about that technical item? In terms of certain U.K.-based or European investors being forced to sell post-close, how are you thinking about that technical item? in terms of certain u.k.-based or european investors being forced to sell post-close how are you thinking about that technical item

Speaker 2: Right. Yeah, right. Yeah, that's what we heard as well from investors. Right. right Yeah, right. yeah right Yeah, that's what we heard as well from investors. yeah that's what we heard as well from investors

Speaker 3: Yeah. Yeah. yeah

Speaker 2: I mean, the focus often on flow back. The way that we frame this is it's important to remember that McCormick is going to be three times the size as it is today. With 50% of capital is being managed in U.S., being managed by index and ETF funds, there should also be a sizable index buying demand on closing as McCormick becomes a larger constituent of U.S. indices. We believe that the flow back is expected to more than offset any risks of any selling U.K. or European index trading funds at closing. Potential mandate-driven selling based on our analysis is very limited and to a small portion of some U.K. European investors. We believe that net net, the flow forward is going to more than offset the flow back, based on what we know today. I mean, the focus often on flow back. i mean the focus often on flow back The way that we frame this is it's important to remember that McCormick is going to be three times the size as it is today. the way that we frame this is it's important to remember that mccormick is going to be three times the size as it is today With 50% of capital is being managed in U.S., being managed by index and ETF funds, there should also be a sizable index buying demand on closing as McCormick becomes a larger constituent of U.S. indices. with 50% of capital is being managed in u.s being managed by index and etf funds there should also be a sizable index buying demand on closing as mccormick becomes a larger constituent of u.s indices We believe that the flow back is expected to more than offset any risks of any selling U.K. or European index trading funds at closing. we believe that the flow back is expected to more than offset any risks of any selling u.k or european index trading funds at closing Potential mandate-driven selling based on our analysis is very limited and to a small portion of some U.K. potential mandate-driven selling based on our analysis is very limited and to a small portion of some u.k European investors. european investors We believe that net net, the flow forward is going to more than offset the flow back, based on what we know today. we believe that net net the flow forward is going to more than offset the flow back based on what we know today Many active managers will have the flexibility to continue holding McCormick shares at closing. As we said today, as we mentioned today, Brendan mentioned it, the secondary European listing will also be confirmed by the end of July. Which should also help support flows and create broader liquidity. In addition to engaging with McCormick shareholders, Brendan and I have been engaging with Unilever shareholders and European-based active shareholders to make sure that they recognize the merits of this transaction and the combined company. We are very confident in the long-term benefits of this transaction and what provides to all shareholders. At the same time, we believe that the world's largest capital markets will be able to absorb the flows of this transaction, and we have grounds to believe the flow back will be manageable. Many active managers will have the flexibility to continue holding McCormick shares at closing. many active managers will have the flexibility to continue holding mccormick shares at closing As we said today, as we mentioned today, Brendan mentioned it, the secondary European listing will also be confirmed by the end of July. as we said today as we mentioned today brendan mentioned it the secondary european listing will also be confirmed by the end of july Which should also help support flows and create broader liquidity. which should also help support flows and create broader liquidity In addition to engaging with McCormick shareholders, Brendan and I have been engaging with Unilever shareholders and European-based active shareholders to make sure that they recognize the merits of this transaction and the combined company. in addition to engaging with mccormick shareholders brendan and i have been engaging with unilever shareholders and european-based active shareholders to make sure that they recognize the merits of this transaction and the combined company We are very confident in the long-term benefits of this transaction and what provides to all shareholders. we are very confident in the long-term benefits of this transaction and what provides to all shareholders At the same time, we believe that the world's largest capital markets will be able to absorb the flows of this transaction, and we have grounds to believe the flow back will be manageable. at the same time we believe that the world's largest capital markets will be able to absorb the flows of this transaction and we have grounds to believe the flow back will be manageable

Speaker 3: Manageable. Manageable. manageable

Speaker 2: Yeah. Yeah. yeah

Speaker 3: Okay. Brendan, you talked about the importance of staying focused and delivering on fiscal 2026. I actually think in recent weeks that's been the bigger concern of investors is can McCormick adhere to guidance which you've affirmed? What milestones should we be watching for to gain more confidence that those 2026 goals are achievable and the company's not being distracted? Okay. okay Brendan, you talked about the importance of staying focused and delivering on fiscal 2026. brendan you talked about the importance of staying focused and delivering on fiscal 2026 I actually think in recent weeks that's been the bigger concern of investors is can McCormick adhere to guidance which you've affirmed? i actually think in recent weeks that's been the bigger concern of investors is can mccormick adhere to guidance which you've affirmed What milestones should we be watching for to gain more confidence that those 2026 goals are achievable and the company's not being distracted? what milestones should we be watching for to gain more confidence that those 2026 goals are achievable and the company's not being distracted

Speaker 1: Yeah, I think, I'll talk about from a McCormick perspective and even make a comment from a Unilever perspective. From a McCormick perspective, I think investors should look for continued organic sales growth margin expansion, continuing to invest in the business. Those three things are key themes for us in 2026. As we look at it, we continue to really drive investment in the business too, I think you'll continue to see us investing, sorry, balancing both volume and profitability, and we're not trying to sacrifice either. I think in that context, it's important that we're really committed to doing that. As we get through the year, we still see an ability to do that. We're focused on driving long-term healthy trends in our business overall and doing that across both segments that we've got. Yeah, I think, I'll talk about from a McCormick perspective and even make a comment from a Unilever perspective. yeah i think i'll talk about from a mccormick perspective and even make a comment from a unilever perspective From a McCormick perspective, I think investors should look for continued organic sales growth margin expansion, continuing to invest in the business. from a mccormick perspective i think investors should look for continued organic sales growth margin expansion continuing to invest in the business Those three things are key themes for us in 2026. those three things are key themes for us in 2026 As we look at it, we continue to really drive investment in the business too, I think you'll continue to see us investing, sorry, balancing both volume and profitability, and we're not trying to sacrifice either. as we look at it we continue to really drive investment in the business too i think you'll continue to see us investing sorry balancing both volume and profitability and we're not trying to sacrifice either I think in that context, it's important that we're really committed to doing that. i think in that context it's important that we're really committed to doing that As we get through the year, we still see an ability to do that. as we get through the year we still see an ability to do that We're focused on driving long-term healthy trends in our business overall and doing that across both segments that we've got. we're focused on driving long-term healthy trends in our business overall and doing that across both segments that we've got We feel pretty confident about being able to do that throughout the entire year, and we'll always be remaining focused on sort of creating that balance right now. I think it's important in the marketplace. When I think about our key themes for 2026, I still feel like we're going to try and deliver on most of those. Interestingly, it's the very same key themes for Unilever. We feel pretty confident about being able to do that throughout the entire year, and we'll always be remaining focused on sort of creating that balance right now. we feel pretty confident about being able to do that throughout the entire year and we'll always be remaining focused on sort of creating that balance right now I think it's important in the marketplace. i think it's important in the marketplace When I think about our key themes for 2026, I still feel like we're going to try and deliver on most of those. when i think about our key themes for 2026 i still feel like we're going to try and deliver on most of those Interestingly, it's the very same key themes for Unilever. interestingly it's the very same key themes for unilever

Speaker 3: Yep. Yep. yep

Speaker 1: Overall, I have a lot of confidence after talking with their teams, too, because it's a recurring point, which is strengthening and continuing to execute on the base business. That gives us confidence, too, and we expect them to continue their performance and track record. Having said this, both companies are doing this in the context of just continuing disruption that's coming into the marketplace especially through inflationary pressures, and we're finding a way to work through that which I think is kind of the most important point. On the context or the idea of distraction. Overall, I think that what I would tell you is that I observe tremendous organizational and operational clarity right now. We get that because we really have dedicated the resources to work the integration. When they go to a meeting throughout the day, they're not trying to work on both. Overall, I have a lot of confidence after talking with their teams, too, because it's a recurring point, which is strengthening and continuing to execute on the base business. overall i have a lot of confidence after talking with their teams too because it's a recurring point which is strengthening and continuing to execute on the base business That gives us confidence, too, and we expect them to continue their performance and track record. that gives us confidence too and we expect them to continue their performance and track record Having said this, both companies are doing this in the context of just continuing disruption that's coming into the marketplace especially through inflationary pressures, and we're finding a way to work through that which I think is kind of the most important point. having said this both companies are doing this in the context of just continuing disruption that's coming into the marketplace especially through inflationary pressures and we're finding a way to work through that which i think is kind of the most important point On the context or the idea of distraction. on the context or the idea of distraction Overall, I think that what I would tell you is that I observe tremendous organizational and operational clarity right now. overall i think that what i would tell you is that i observe tremendous organizational and operational clarity right now We get that because we really have dedicated the resources to work the integration. we get that because we really have dedicated the resources to work the integration When they go to a meeting throughout the day, they're not trying to work on both. when they go to a meeting throughout the day they're not trying to work on both

Speaker 3: Yeah. Yeah. yeah

Speaker 1: They're working on one. The same is true with the rest of the team. Obviously, the lion's share of our organization, working on the existing business, and there's just a lot of clarity and focus around that. We're not conflating the two, and we're making sure that we don't. I think that discipline is something that we're good at overall, but it's also important to be said. That's how we're going to carry ourselves through the rest of the year. They're working on one. they're working on one The same is true with the rest of the team. the same is true with the rest of the team Obviously, the lion's share of our organization, working on the existing business, and there's just a lot of clarity and focus around that. obviously the lion's share of our organization working on the existing business and there's just a lot of clarity and focus around that We're not conflating the two, and we're making sure that we don't. we're not conflating the two and we're making sure that we don't I think that discipline is something that we're good at overall, but it's also important to be said. i think that discipline is something that we're good at overall but it's also important to be said That's how we're going to carry ourselves through the rest of the year. that's how we're going to carry ourselves through the rest of the year

Speaker 3: Okay. Yeah, the external environment's not making life easier on anybody. I guess, maybe if you step back, what is your perspective on the state of the consumer, both in the U.S. and more broadly, overseas? I guess what implications for your categories and for your business are you seeing in evolving trends? Okay. okay Yeah, the external environment's not making life easier on anybody. yeah the external environment's not making life easier on anybody I guess, maybe if you step back, what is your perspective on the state of the consumer, both in the U.S. and more broadly, overseas? i guess maybe if you step back what is your perspective on the state of the consumer both in the u.s and more broadly overseas I guess what implications for your categories and for your business are you seeing in evolving trends? i guess what implications for your categories and for your business are you seeing in evolving trends

Speaker 1: If I step back and think about the way we've been talking about this the last several quarters, we've been talking about a pressured consumer. You see that expressed as more frequent trips to the grocery store, buying fewer items, greater demand for value, and taking a look at that. At the same time, searching for health and wellness at shelf. What's interesting is they're not compromising on health and wellness, even though they're looking for more value, they're trying to find both. Right now, what we're seeing is even a little bit more noise in the data, which would take me to this point of this idea of a resilient consumer that we've been talking about now for many quarters. Feels like it's weakening a little bit in the context of rising gas prices. If I step back and think about the way we've been talking about this the last several quarters, we've been talking about a pressured consumer. if i step back and think about the way we've been talking about this the last several quarters we've been talking about a pressured consumer You see that expressed as more frequent trips to the grocery store, buying fewer items, greater demand for value, and taking a look at that. you see that expressed as more frequent trips to the grocery store buying fewer items greater demand for value and taking a look at that At the same time, searching for health and wellness at shelf. at the same time searching for health and wellness at shelf What's interesting is they're not compromising on health and wellness, even though they're looking for more value, they're trying to find both. what's interesting is they're not compromising on health and wellness even though they're looking for more value they're trying to find both Right now, what we're seeing is even a little bit more noise in the data, which would take me to this point of this idea of a resilient consumer that we've been talking about now for many quarters. right now what we're seeing is even a little bit more noise in the data which would take me to this point of this idea of a resilient consumer that we've been talking about now for many quarters Feels like it's weakening a little bit in the context of rising gas prices. feels like it's weakening a little bit in the context of rising gas prices I think it's difficult to identify how long we think that will be the case. It's something that we're really taking a close look at overall. Having said all of that, we've been through similar environments in the past, and we know how to navigate them, and I think Unilever does, too. This is an environment where we have to manage margin and also volume growth, and we'll have to balance those two, I think, in this environment. Also, in these environments, our categories still continue to grow in demand. I mean, flavor's still on trend. We have a lot to be thankful for in terms of our categories being healthy. Also, we have to think about how we navigate now that we have different factors going on overall. I think it's difficult to identify how long we think that will be the case. i think it's difficult to identify how long we think that will be the case It's something that we're really taking a close look at overall. it's something that we're really taking a close look at overall Having said all of that, we've been through similar environments in the past, and we know how to navigate them, and I think Unilever does, too. having said all of that we've been through similar environments in the past and we know how to navigate them and i think unilever does too This is an environment where we have to manage margin and also volume growth, and we'll have to balance those two, I think, in this environment. this is an environment where we have to manage margin and also volume growth and we'll have to balance those two i think in this environment Also, in these environments, our categories still continue to grow in demand. also in these environments our categories still continue to grow in demand I mean, flavor's still on trend. i mean flavor's still on trend We have a lot to be thankful for in terms of our categories being healthy. we have a lot to be thankful for in terms of our categories being healthy Also, we have to think about how we navigate now that we have different factors going on overall. also we have to think about how we navigate now that we have different factors going on overall Having said that, we're always prepared to really kind of keep driving, I think, performance in the marketplace. For the rest of the year, what you'll see from us is continued growth in distribution, continued focus on revenue growth management plans being implemented in the marketplace. We'll still get the benefit of a lot of launches that we did in 2025, like our McCormick Gourmet renovation overall. Having said that, we're always prepared to really kind of keep driving, I think, performance in the marketplace. having said that we're always prepared to really kind of keep driving i think performance in the marketplace For the rest of the year, what you'll see from us is continued growth in distribution, continued focus on revenue growth management plans being implemented in the marketplace. for the rest of the year what you'll see from us is continued growth in distribution continued focus on revenue growth management plans being implemented in the marketplace We'll still get the benefit of a lot of launches that we did in 2025, like our McCormick Gourmet renovation overall. we'll still get the benefit of a lot of launches that we did in 2025 like our mccormick gourmet renovation overall Then we think about the innovation that we're launching this year, pretty exciting stuff. Our French's Mustard business, we've done a promotional partnership with the release of the new Minions movie. Are you a fan? Then we think about the innovation that we're launching this year, pretty exciting stuff. then we think about the innovation that we're launching this year pretty exciting stuff Our French's Mustard business, we've done a promotional partnership with the release of the new Minions movie. our french's mustard business we've done a promotional partnership with the release of the new minions movie Are you a fan? are you a fan

Speaker 3: Of course. Of course. of course

Speaker 1: Okay. It's actually kind of exciting. We're turning the color of mustard green because of the key character in the movie. It's all natural colors, by the way. That's kind of an exciting element of just bringing fun to the category overall. We're relaunching our Seasoning Blends line, and what I'm really excited about, yes, there's new flavors, it's the price pack architecture changes that we're driving to create maybe more value at shelf. Okay. okay It's actually kind of exciting. it's actually kind of exciting We're turning the color of mustard green b ecause of the key character in the movie. we're turning the color of mustard green b ecause of the key character in the movie It's all natural colors, by the way. it's all natural colors by the way That's kind of an exciting element of just bringing fun to the category overall. that's kind of an exciting element of just bringing fun to the category overall We're relaunching our Seasoning Blends line, and what I'm really excited about, yes, there's new flavors, it's the price pack architecture changes that we're driving to create maybe more value at shelf. we're relaunching our seasoning blends line and what i'm really excited about yes there's new flavors it's the price pack architecture changes that we're driving to create maybe more value at shelf I'm excited about that. We're taking some of our new platforms and just launching them with really strong promotional ties, like Bridgerton or Harry Potter. These are fun, exciting things that we're doing over the summer. I'm excited about that. i'm excited about that We're taking some of our new platforms and just launching them with really strong promotional ties, like Bridgerton or Harry Potter. we're taking some of our new platforms and just launching them with really strong promotional ties like bridgerton or harry potter These are fun, exciting things that we're doing over the summer. these are fun exciting things that we're doing over the summer

Speaker 3: I'm a fan of those two. I'm a fan of those two. i'm a fan of those two

Speaker 1: What? What? what

Speaker 3: I'm a fan of those two. I'm a fan of those two. i'm a fan of those two

Speaker 1: I'll get you some green mustard. I'll get you some green mustard. i'll get you some green mustard

Speaker 3: Good. I guess, Marcos, from your perspective, what are the most acute cost or demand pressures as you think about 2026, and I guess what gives you the confidence that you can? Good. good I guess, Marcos, from your perspective, what are the most acute cost or demand pressures as you think about 2026, and I guess what gives you the confidence that you can? i guess marcos from your perspective what are the most acute cost or demand pressures as you think about 2026 and i guess what gives you the confidence that you can

Speaker 2: Yeah. Yeah. yeah

Speaker 3: Fight through them? Fight through them? fight through them

Speaker 2: Yeah, we're in a quiet period right now, so we cannot share a lot of information, and we'll be able to share more information as part of our close earnings call at the end of June. Yeah, we're in a quiet period right now, so we cannot share a lot of information, and we'll be able to share more information as part of our close earnings call at the end of June. yeah we're in a quiet period right now so we cannot share a lot of information and we'll be able to share more information as part of our close earnings call at the end of june

Speaker 3: Okay. Okay. okay

Speaker 2: Based on what we know today, we remain on track with our outlook for 2026. Based on what we know today, we remain on track with our outlook for 2026. based on what we know today we remain on track with our outlook for 2026

Speaker 3: Sure. Sure. sure

Speaker 2: Overall, Brendan talked about the perspective on the consumer environment. I'm going to cover the cost piece. Yes, from a cost perspective, we are seeing cost increase. We do plan to mitigate the vast majority of those cost pressures through CCI programs, supply chain initiatives, as well as, obviously, leveraging revenue management capabilities that we have been doing over the last couple of months. In periods of cost pressures, we're trying to balance the idea of margin management with top-line growth as much as best as we can. Overall, Brendan talked about the perspective on the consumer environment. overall brendan talked about the perspective on the consumer environment I'm going to cover the cost piece. i'm going to cover the cost piece Yes, from a cost perspective, we are seeing cost increase. yes from a cost perspective we are seeing cost increase We do plan to mitigate the vast majority of those cost pressures through CCI programs, supply chain initiatives, as well as, obviously, leveraging revenue management capabilities that we have been doing over the last couple of months. we do plan to mitigate the vast majority of those cost pressures through cci programs supply chain initiatives as well as obviously leveraging revenue management capabilities that we have been doing over the last couple of months In periods of cost pressures, we're trying to balance the idea of margin management with top-line growth as much as best as we can. in periods of cost pressures we're trying to balance the idea of margin management with top-line growth as much as best as we can Meet the consumers where they are with innovation, with convenience and price. That has been really the focus of the management team, is how do we protect the margins as well as drive the volume as much as we can in terms of finding that balance. Overall, we believe that the costs are rising, but we have elements in place and our toolbox in place to really offset those during the year Meet the consumers where they are with innovation, with convenience and price. meet the consumers where they are with innovation with convenience and price That has been really the focus of the management team, is how do we protect the margins as well as drive the volume as much as we can in terms of finding that balance. that has been really the focus of the management team is how do we protect the margins as well as drive the volume as much as we can in terms of finding that balance Overall, we believe that the costs are rising, but we have elements in place and our toolbox in place to really offset those during the year overall we believe that the costs are rising but we have elements in place and our toolbox in place to really offset those during the year

Speaker 3: Okay. We're closing in on the end of time. To close, I guess if there was one message or one strategy, maybe one message on execution, one message on strategy that you would leave investors with in terms of this is what investors should be focused on, this is what we're focused on, what would it be? Okay. okay We're closing in on the end of time. we're closing in on the end of time To close, I guess if there was one message or one strategy, maybe one message on execution, one message on strategy that you would leave investors with in terms of this is what investors should be focused on, this is what we're focused on, what would it be? to close i guess if there was one message or one strategy maybe one message on execution one message on strategy that you would leave investors with in terms of this is what investors should be focused on this is what we're focused on what would it be

Speaker 1: Strategically, I think the headline for me would be McCormick is the right home for this Unilever Foods portfolio. It is the vision of how we view ourselves operating in flavor. We're intentionally focused on it, our technology, our talent, our brands. That's all we're focused on. We see a lot of growth in that part of the marketplace. We're creating global scale in these attractive categories by combining these two businesses. Just like I said before, we're enabling ourselves to accomplish something that would take decades to do for either company, actually. Strategically, I think the headline for me would be McCormick is the right home for this Unilever Foods portfolio. strategically i think the headline for me would be mccormick is the right home for this unilever foods portfolio It is the vision of how we view ourselves operating in flavor. it is the vision of how we view ourselves operating in flavor We're intentionally focused on it, our technology, our talent, our brands. we're intentionally focused on it our technology our talent our brands That's all we're focused on. that's all we're focused on We see a lot of growth in that part of the marketplace. we see a lot of growth in that part of the marketplace We're creating global scale in these attractive categories by combining these two businesses. we're creating global scale in these attractive categories by combining these two businesses Just like I said before, we're enabling ourselves to accomplish something that would take decades to do for either company, actually. just like i said before we're enabling ourselves to accomplish something that would take decades to do for either company actually It creates a very unique proposition in the industry to have this really focused portfolio with scale, and I think that's quite exciting overall, and it's ultimately what's going to really amplify things that already make McCormick a great company. From an execution standpoint, I think the most important is, obviously, we're doing two things right now. We're running the existing business, and we're preparing an integration plan for the business. They're both receiving that very dedicated attention and focus that you would want them to have. All of our executional attention is on the clarity, organizationally and operationally on needing to do both, dedicating the resources to make that happen. I feel pretty confident about our ability to execute that. That's without dismissing an investor concern about the scale or the complexity. I would argue there's always complexity in integrations. It creates a very unique proposition in the industry to have this really focused portfolio with scale, and I think that's quite exciting overall, and it's ultimately what's going to really amplify things that already make McCormick a great company. it creates a very unique proposition in the industry to have this really focused portfolio with scale and i think that's quite exciting overall and it's ultimately what's going to really amplify things that already make mccormick a great company From an execution standpoint, I think the most important is, obviously, we're doing two things right now. from an execution standpoint i think the most important is obviously we're doing two things right now We're running the existing business, and we're preparing an integration plan for the business. we're running the existing business and we're preparing an integration plan for the business They're both receiving that very dedicated attention and focus that you would want them to have. they're both receiving that very dedicated attention and focus that you would want them to have All of our executional attention is on the clarity, organizationally and operationally on needing to do both, dedicating the resources to make that happen. all of our executional attention is on the clarity organizationally and operationally on needing to do both dedicating the resources to make that happen I feel pretty confident about our ability to execute that. i feel pretty confident about our ability to execute that That's without dismissing an investor concern about the scale or the complexity. that's without dismissing an investor concern about the scale or the complexity I would argue there's always complexity in integrations. i would argue there's always complexity in integrations We just have to really buckle down and make sure that we think it through and do a good job of executing that. We have a track record of doing that overall. Execution is definitely on our mind right now to make sure that we get through the year by accomplishing both, and we're off to a very good start, we think. We just have to really buckle down and make sure that we think it through and do a good job of executing that. we just have to really buckle down and make sure that we think it through and do a good job of executing that We have a track record of doing that overall. we have a track record of doing that overall Execution is definitely on our mind right now to make sure that we get through the year by accomplishing both, and we're off to a very good start, we think. execution is definitely on our mind right now to make sure that we get through the year by accomplishing both and we're off to a very good start we think

Speaker 3: Okay. With that, we'll wrap it up. I wish you a good trip back to Baltimore so you can participate in those meetings tomorrow. Okay. okay With that, we'll wrap it up. with that we'll wrap it up I wish you a good trip back to Baltimore so you can participate in those meetings tomorrow. i wish you a good trip back to baltimore so you can participate in those meetings tomorrow

Speaker 1: Yeah. Yeah. yeah

Speaker 3: Thanks for joining us. Thanks for joining us. thanks for joining us

Speaker 1: Thank you. Thank you. thank you

Speaker 3: Thanks to all of you for joining us as well. Thanks to all of you for joining us as well. thanks to all of you for joining us as well