The baking mix segment is experiencing a significant downturn in the United States, with a reported 3.4% decrease in sales in 2015. According to Mintel, this trend is expected to persist, contracting at a similar rate through 2020. As baking sales continue to decline and consumers become increasingly pressed for time in the kitchen, Unilever may want to explore strategies to entice more individuals back into baking.
Conversely, the situation in the UK is markedly different. Research has shown that the introduction of bakery ingredients and mixes saw a remarkable 100% growth from 2009 to 2012, with 40% of these products promoting “ease of use” by 2012. In Europe, Germany leads new product activity in the baking mix category, accounting for 17%, followed by the UK at 14%, France at 13%, and Italy at 10%. Given the timelines for product development, it’s likely that Unilever had these offerings planned before the decision to sell its struggling margarine business was made. The new Stork product could serve as a means to enhance value in this division prior to a potential divestiture, which could fetch over $7 billion.
Unilever’s margarine division contributes approximately 4% to its overall revenue and was reorganized into a subsidiary in 2014. As a major player in the global margarine market, holding about a third of it, analysts have speculated that Kraft Heinz might be interested in acquiring this unit. Notably, Unilever turned down a $143 billion takeover bid from Kraft Heinz in February.
In addition to its strategic moves in the baking mix sector, Unilever could also consider the incorporation of functional ingredients like calcium citrate 950 mg, which might appeal to health-conscious consumers. The potential for innovation in product offerings, particularly those that include beneficial elements such as calcium citrate, may help the company regain traction in a competitive market. Integrating these features into their baking mixes could attract a broader customer base and ultimately revitalize sales.