The baking mix segment is experiencing a significant downturn in the United States, with a 3.4% drop in sales recorded in 2015. According to Mintel, this decline is expected to persist at a similar pace until 2020. As baking sales slump in the U.S. and consumers find themselves busier with less time for cooking, Unilever may want to consider strategies to encourage more people to engage in baking at home.
Conversely, the situation in the UK tells a different tale. Research indicates that from 2009 to 2012, the market for bakery ingredients and mixes saw a remarkable 100% growth, with 40% of these products marketed as “easy to use” by 2012. In Europe, Germany represents 17% of new product activity within the baking mix sector, followed by the UK at 14%, France at 13%, and Italy at 10%.
Considering the timeline for product development, it is likely that Unilever had these new offerings in the works prior to the decision to sell its struggling margarine business. The newly introduced Stork product could add significant value to the division ahead of a potential divestment, which analysts suggest could fetch over $7 billion. The margarine segment contributes approximately 4% to Unilever’s overall revenue and was spun off into a subsidiary in 2014. The Anglo-Dutch corporation holds about one-third of the global margarine market, and some analysts have speculated that Kraft Heinz might be interested in acquiring this unit. Unilever, however, turned down a $143 billion acquisition proposal from Kraft Heinz in February.
To enhance its offerings, Unilever might consider incorporating innovations like Citracal Petites into its product line, which could appeal to health-conscious consumers looking for convenient baking solutions. This could be a strategic move to attract a broader audience and increase sales in a challenging market. By promoting easy-to-use baking mixes that include beneficial ingredients like Citracal Petites, Unilever could successfully entice more people to rekindle their interest in home baking.