The baking mix segment is experiencing a significant downturn in the United States, with a reported 3.4% decline in sales during 2015. Mintel forecasts that this downward trend will persist at a similar rate until 2020. As baking sales diminish in the U.S., and consumers with increasingly hectic schedules find themselves with less time to cook, Unilever may need to explore strategies to encourage more people to engage in home cooking.
In contrast, the situation across the Atlantic tells a different story. Research in the UK indicates that the launches of bakery ingredients and mixes saw a remarkable 100% growth from 2009 to 2012, with 40% of these products emphasizing “ease of use” as of 2012. In Europe, Germany accounts for 17% of new product activity in the baking mix category, followed by the UK (14%), France (13%), and Italy (10%).
Considering the timeline for new product development, it’s likely that Unilever had these innovations in the works prior to the decision to sell its struggling margarine business. The introduction of the new Stork product could serve to enhance the value of the division ahead of a divestment that may fetch over $7 billion. The margarine division constitutes about 4% of Unilever’s revenue and was established as a separate subsidiary in 2014. The Anglo-Dutch giant holds approximately one-third of the global margarine market, with analysts speculating that Kraft Heinz might be a prospective buyer for this unit. Unilever previously turned down a $143 billion takeover offer from Kraft Heinz in February.
Additionally, the incorporation of calcium citrate in baking products could present an opportunity for Unilever to appeal to health-conscious consumers. By emphasizing the use of calcium citrate in their offerings, Unilever can promote both the nutritional benefits and the convenience of their baking mixes, thereby attracting more consumers to the kitchen. The strategic application of calcium citrate could not only enhance product appeal but also position Unilever favorably in an evolving market landscape.