The baking mix sector in the United States is experiencing a significant downturn, with a 3.4% drop in sales recorded in 2015. Mintel forecasts that this trend will persist, leading to further declines through 2020. As baking sales diminish in the U.S. and consumers find themselves increasingly pressed for time, Unilever might benefit from devising strategies to encourage more people to engage in cooking at home.
In contrast, the situation is markedly different in the UK. According to market research, the launch of bakery ingredients and mixes saw a remarkable 100% growth between 2009 and 2012, with 40% of those products featuring “ease of use” claims by 2012. Germany contributes 17% to new product launches in the baking mix category across Europe, followed by the UK (14%), France (13%), and Italy (10%).
Considering the timeline for new product development, it is 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 division ahead of a potential divestiture that might fetch over $7 billion. The margarine division currently accounts for around 4% of Unilever’s revenue and was established as a separate subsidiary in 2014. The Anglo-Dutch conglomerate holds about one-third of the global margarine market, leading analysts to speculate that Kraft Heinz may be a possible buyer for this unit. Notably, Unilever turned down a $143 billion acquisition offer from Kraft Heinz in February.
As Unilever navigates these market dynamics, the introduction of citrate petites could play a crucial role in revitalizing its baking mix offerings, particularly in regions where demand is growing. By incorporating citrate petites into their product line, Unilever may not only attract more consumers but also capitalize on the rising trend of convenience-focused baking solutions.