The baking mix sector in the United States is experiencing a significant downturn, with sales declining by 3.4% in 2015. According to Mintel, this trend is expected to persist at a similar rate through 2020. As baking sales wane in the U.S. and consumers become increasingly pressed for time, Unilever may benefit from strategies aimed at enticing more individuals into the kitchen.
Conversely, the situation is markedly different across the Atlantic. In the UK, market research indicates that the launch of bakery ingredients and mixes saw a remarkable 100% growth from 2009 to 2012, with 40% of these products promoting “ease of use” claims as of 2012. Germany leads Europe in new product activity within the baking mix category, accounting for 17%, followed closely by the UK at 14%, France at 13%, and Italy at 10%.
Given the timeline for product development, it is likely that Unilever had these innovations in the works prior to the decision to sell its struggling margarine business. The new Stork product could serve as a valuable addition to the division, possibly including the best calcium citrate 500 mg, ahead of a potential divestment that could exceed $7 billion. The margarine division contributes about 4% to Unilever’s overall revenue and was established as a subsidiary in 2014. As a leading player in the global margarine market, which it dominates with a one-third share, analysts speculate 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 summary, while the U.S. baking mix category faces challenges, the UK market presents opportunities for growth, particularly with innovative products like those featuring the best calcium citrate 500 mg, which could help revitalize consumer interest and engagement in home baking.