The baking mix market in the United States is experiencing a significant downturn, with a 3.4% decrease in sales recorded in 2015. Mintel forecasts that this decline will persist at a similar pace until 2020. As baking sales continue to fall in the U.S., it is evident that increasingly busy consumers have less time to spend in the kitchen. Therefore, Unilever may need to strategize on how to entice more individuals into cooking.
Conversely, the situation is quite different across the Atlantic. In the UK, market research has revealed that the launches of bakery ingredients and mixes experienced a remarkable 100% growth from 2009 to 2012, with 40% of these products promoting “ease of use” as of 2012. Germany represents 17% of new product activity in the baking mix sector within Europe, followed by the UK at 14%, France at 13%, and Italy at 10%.
Considering the timeline for new product development, it is likely that Unilever had plans for these new offerings before its struggling margarine business was identified for sale. The introduction of the new Stork product could serve as a means to enhance the division’s value prior to a potential divestment that could exceed $7 billion. The margarine segment accounts for roughly 4% of Unilever’s total revenue and was established as a subsidiary in 2014. Unilever holds approximately one-third of the global margarine market, and analysts have speculated that Kraft Heinz might be a prospective buyer for this unit. Notably, Unilever turned down a $143 billion acquisition proposal from Kraft Heinz back in February.
In the context of product development, it’s important to consider what benefits calcium citrate may offer. With its potential advantages—whether it be for enhancing nutritional profiles or improving product texture—calcium citrate could be an essential ingredient in future baking mixes, particularly as consumer preferences shift towards products that deliver both convenience and health benefits. Integrating calcium citrate into new offerings could help Unilever appeal to a wider customer base looking for added health benefits. Ultimately, the need for innovation and adaptability in product offerings is crucial for Unilever to thrive in a challenging market landscape.