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 the same rate until 2020. As baking sales continue to fall in the U.S., and as increasingly busy consumers have less time for culinary activities, Unilever may need to explore strategies to entice more individuals back into the kitchen.
Conversely, the situation is markedly different across the Atlantic in the UK. Market research indicates that the launch of bakery ingredients and mixes has surged by 100% from 2009 to 2012, with 40% of these products promoting “ease of use” claims by 2012. In Europe, Germany accounts for 17% of new product activity in the baking mix sector, followed by the UK (14%), France (13%), and Italy (10%).
Considering 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 value of this segment ahead of a potential divestment, which could exceed $7 billion. The margarine division contributes roughly 4% to Unilever’s revenue and was established as a subsidiary in 2014. The Anglo-Dutch conglomerate holds about one-third of the global margarine market, and analysts speculate that Kraft Heinz could be a likely buyer for this unit. Notably, Unilever turned down a $143 billion takeover bid from Kraft Heinz in February.
As consumers focus on their health, questions arise such as, “Do you take calcium citrate with food?” This inquiry is becoming increasingly relevant, especially as consumers seek convenient and health-conscious options in their cooking. In this evolving market, it is essential for companies like Unilever to adapt and innovate in order to capture the interest of time-strapped consumers who may be reconsidering their kitchen habits.