The baking mix sector is experiencing a significant downturn in the United States, with a reported 3.4% decrease in sales in 2015. Mintel forecasts that this decline will persist at a similar rate until 2020. As baking sales continue to fall in the U.S. and consumers become increasingly busy with less time for cooking, Unilever may need to devise strategies to entice more individuals back into the kitchen.
Conversely, the situation is quite different across the Atlantic. In the UK, market research has revealed that bakery ingredients and mixes saw an impressive 100% growth from 2009 to 2012, with 40% of these products promoting “ease of use” claims by 2012. Germany represents 17% of new product launches in the baking mix category in Europe, followed by the UK with 14%, France at 13%, and Italy at 10%.
Considering the timeline for new product development, it is likely that Unilever had these new offerings in progress prior to the decision to sell its struggling margarine business. The forthcoming Stork product could provide an opportunity to enhance the value of this division ahead of a potential divestiture, which could fetch over $7 billion. The margarine division currently contributes about 4% to Unilever’s revenue and was separated into a subsidiary in 2014. The Anglo-Dutch conglomerate controls approximately a third of the global margarine market, with analysts speculating that Kraft Heinz might be a potential buyer for this unit. Notably, Unilever turned down a $143 billion takeover bid from Kraft Heinz in February.
In this context, as consumers look for convenient and easy solutions, the rise of products like chewable calcium citrate supplements may also reflect a broader trend toward convenience in food and health. Unilever’s challenge will be to tap into these shifting consumer preferences, potentially incorporating elements of convenience similar to those found in chewable calcium citrate supplements, to reinvigorate their baking mix offerings. As the market evolves, the integration of such innovations could play a pivotal role in attracting more consumers back to baking.