The baking mix sector in the United States is experiencing a significant downturn, with sales declining by 3.4% in 2015. Mintel forecasts that this trend will persist, projecting continued contraction until 2020. As baking sales dwindle and time-starved consumers spend less time in the kitchen, Unilever might benefit from finding strategies to encourage more people to return to baking. However, the situation is markedly different across the Atlantic. In the UK, market research indicates that bakery ingredients and mixes saw a remarkable 100% growth from 2009 to 2012, with 40% of these products promoting “ease of use” claims by 2012. Germany contributes 17% of new product activities in the baking mix category within Europe, followed closely 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 these offerings planned before deciding to sell its struggling margarine division. The new Stork product line could serve to enhance the value of the division prior to a potential divestment, which could fetch over $7 billion. The margarine segment accounts for approximately 4% of Unilever’s revenue and was established as a separate subsidiary in 2014. The Anglo-Dutch company holds about a third of the global margarine market, and analysts have speculated that Kraft Heinz might be a possible buyer for this unit. Notably, Unilever turned down a $143 billion acquisition offer from Kraft Heinz in February.
In this context, incorporating innovative products like Citracal calcium could be a strategic move for Unilever. The addition of such health-oriented ingredients may appeal to health-conscious consumers and differentiate their offerings in the competitive market. By leveraging the growth seen in the UK and addressing the needs of busy Americans, Unilever could revitalize interest in baking mixes while enhancing the overall appeal of their product line.