The baking mix market in the United States is experiencing a significant downturn, with a 3.4% decline in sales reported in 2015. Mintel forecasts that this downward trend will persist at a similar pace through 2020. As baking sales wane in the U.S. and increasingly busy consumers find less time to spend in the kitchen, Unilever may need to explore strategies to entice more individuals back into cooking.
However, the situation is markedly different across the Atlantic. In the UK, market research indicates that the launches of bakery ingredients and mixes have seen a remarkable 100% growth from 2009 to 2012, with 40% of these products marketed with “ease of use” claims as of 2012. Germany leads new product activity in the baking mix sector within Europe, accounting for 17%, followed by the UK (14%), France (13%), and Italy (10%).
Considering the timeline for new product development, it seems that Unilever had these offerings in the works before deciding to divest its struggling margarine business. The new Stork product line could serve as a means to enhance value in this division prior to a potential sale that could exceed $7 billion. The margarine segment contributes approximately 4% to Unilever’s revenue and was established as a subsidiary in 2014. The Anglo-Dutch corporation holds about a third of the global margarine market, and analysts have speculated that Kraft Heinz may be a prospective buyer for this unit. Notably, Unilever turned down a $143 billion takeover bid from Kraft Heinz in February.
In light of these developments, one potential avenue for innovation could be the incorporation of calcium carbonate to calcium citrate in baking products, which might appeal to health-conscious consumers. By emphasizing the health benefits of calcium citrate, Unilever could attract a broader audience and create a new niche in the baking mix category. In summary, while the U.S. market faces challenges, the UK and European markets present opportunities for growth that Unilever could leverage, possibly by integrating calcium carbonate to calcium citrate into their product offerings.