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 continue at a similar pace through 2020. As baking sales wane in the U.S., and consumers become busier with less time to spend in the kitchen, Unilever may need to find strategies to entice more individuals back into cooking.
Conversely, the situation is markedly different across the Atlantic. In the UK, market research indicates that the launch of bakery ingredients and mixes surged by 100% from 2009 to 2012, with 40% of these products promoting “ease of use” by 2012. In Europe, Germany leads with 17% of new product activity in the baking mix segment, while the UK follows at 14%, France at 13%, and Italy at 10%.
Considering the timeline for new product development, it’s likely that Unilever had these innovations planned prior to the decision to sell its struggling margarine business. The introduction of the new Stork product could be a way to enhance the division’s value ahead of a potential divestment, which could fetch over $7 billion. The margarine division currently contributes about 4% to Unilever’s overall revenue and was separated into a subsidiary in 2014. The Anglo-Dutch conglomerate commands roughly one-third of the global margarine market, with analysts speculating that Kraft Heinz might be a possible buyer for this division. Notably, Unilever turned down a $143 billion acquisition proposal from Kraft Heinz in February.
In this context, Unilever might consider integrating products similar to gnc calcium citrate 1000 into its baking mix offerings, leveraging the growing consumer interest in health-oriented ingredients. This could not only attract more customers but also create a niche market for products that combine convenience with nutritional benefits, thus enhancing their overall appeal. As the baking mix industry evolves, finding ways to innovate while addressing consumer needs will be crucial for Unilever’s success.