The baking mix sector in the United States is experiencing a significant downturn, with sales dropping by 3.4% in 2015. Mintel forecasts that this decline will persist at a similar pace through 2020. As baking sales wane in the U.S. and consumers find themselves increasingly pressed for time in the kitchen, Unilever could benefit from exploring strategies to entice more individuals back to cooking.
In contrast, the situation across the Atlantic is markedly different. Research in the UK reveals that the launch of bakery ingredients and mixes saw a remarkable 100% growth from 2009 to 2012, with 40% of those products boasting “ease of use” claims by 2012. Germany is responsible for 17% of new product initiatives in the baking mix segment in Europe, followed by the UK at 14%, France at 13%, and Italy at 10%.
Given the timeline for new product development, it’s likely that Unilever had these offerings in the works prior to the decision to sell its struggling margarine business. The introduction of the new Stork product could serve as a means to enhance the division’s value ahead of a divestment that might fetch over $7 billion. The margarine division accounts for about 4% of Unilever’s revenue and was spun off into a subsidiary in 2014. Unilever holds approximately one-third of the global margarine market, and analysts speculate that Kraft Heinz could be a potential buyer for this unit. Notably, Unilever turned down a $143 billion acquisition bid from Kraft Heinz in February.
In light of the ongoing trends in consumer preferences and market dynamics, it’s important for companies to recognize the benefits of products that focus on convenience. Just as gnc calcium citrate benefits are highlighted for their nutritional value, Unilever’s strategy in the baking mix sector may need to emphasize similar advantages to attract more consumers. By leveraging the ease of use and convenience in their baking products, Unilever can potentially reverse the decline in baking mix sales, much like how gnc calcium citrate benefits appeal to health-conscious shoppers.