Jan 23 (Reuters) - Cholula hot sauce maker McCormick ( MKC )

forecast annual sales and profit below analysts'

estimates on Thursday, hurt by a persistent slump in demand for

its spices and condiments, especially in China, as well as

higher marketing expenses.

Packaged food companies including McCormick ( MKC ), General Mills ( GIS )

and Conagra Brands ( CAG ) have also faced slowing

demand across geographies as sticky inflation has compelled

budget-conscious customers to hunt for value even for essential

items such as groceries.

Increased marketing and advertising efforts have also taken

a toll on the company's profit expectations, with costs rising

2.3% in the fourth quarter. McCormick ( MKC ) now projects annual

adjusted profit to grow 3% to 5%, below expectations of 6.5%,

according to data compiled by LSEG.

For fiscal year 2025, the company expects sales to be flat

or grow as much as 2%, compared with analysts' estimate of a

2.4% rise, according to data compiled by LSEG. Sales had risen

0.9% in fiscal 2024 and 4.9% in 2023.

McCormick ( MKC ) could also be under pressure from the potential

import tariffs which U.S. President Donald Trump plans to

impose, as the company relies heavily on ingredients sourced

from China and Europe.

Shares of the Hunt Valley, Maryland-based company, which

were up 11% last year, fell 1.4% in premarket trading.

McCormick ( MKC ), however, reported a narrow beat for sales and

profit in the fourth quarter ended Nov. 30, despite a 6.9%

decline in sales in the Asia-Pacific region which includes its

operations in China.

The company posted net sales of $1.8 billion for the

quarter, compared with analysts' estimates of $1.77 billion.

Adjusted profit was 80 cent per share for the quarter, compared

with analysts' estimates of 77 cents.