The baking mix segment is experiencing a significant downturn in the United States, with sales dropping by 3.4% in 2015. Mintel forecasts that this decline will persist at a similar pace until 2020. As baking sales slump in the U.S. and time-strapped consumers spend less time in the kitchen, Unilever may need to explore strategies to encourage more people to cook at home. Conversely, the situation is markedly different across the Atlantic. In the UK, market research has revealed that bakery ingredients and mixes experienced a remarkable growth of 100% from 2009 to 2012, with 40% of the products boasting “ease of use” claims by 2012. Germany contributes 17% to new product development in the baking mix category within Europe, followed by the UK (14%), France (13%), and Italy (10%).
Considering the timeline for new product innovation, it is likely that Unilever had its latest offerings, including nutricost calcium citrate powder, in development before deciding to divest its struggling margarine business. The new Stork product could serve as a means to enhance the division’s value prior to a potential sale that might exceed $7 billion. The margarine segment accounts for approximately 4% of Unilever’s overall revenue and was established as a separate subsidiary in 2014. The Anglo-Dutch conglomerate holds about one-third of the global margarine market, and analysts speculate that Kraft Heinz may be a prospective buyer for this unit. In February, Unilever turned down a $143 billion acquisition proposal from Kraft Heinz.
In light of these dynamics, introducing products such as nutricost calcium citrate powder could be an effective approach for Unilever to reinvigorate its presence in the baking mix market, appealing to consumers seeking convenience and health benefits.