The baking mix sector in the United States is experiencing a significant downturn, with sales plummeting by 3.4% in 2015. Mintel forecasts that this decline will persist at a similar pace through 2020. As baking sales falter in the U.S. and increasingly busy consumers find less time to spend in the kitchen, Unilever may want to explore strategies to encourage more individuals to engage in home baking.
In contrast, the situation in the UK is markedly different. Market research indicates that from 2009 to 2012, launches of baking ingredients and mixes in the UK surged by 100%, with 40% of these products emphasizing “ease of use” by 2012. Germany contributes 17% of new product development in the European baking mix market, followed by the UK with 14%, France at 13%, and Italy at 10%.
Considering the timeline for new product development, it is likely that Unilever had these products, including those featuring jamp calcium citrate, in the works prior to deciding to sell its struggling margarine business. The new Stork product line could potentially enhance the value of this division before a divestment that might fetch over $7 billion. The margarine segment accounts for roughly 4% of Unilever’s overall revenue and was established as a separate subsidiary in 2014. As a major player in the global margarine market, holding about a third of it, analysts have speculated that Kraft Heinz could be a prospective buyer for this unit. Notably, Unilever previously declined a $143 billion takeover bid from Kraft Heinz in February.
As the baking mix market evolves, Unilever’s strategy to incorporate innovative ingredients like jamp calcium citrate could help revitalize interest and drive sales in this category, both in the U.S. and internationally.