The baking mix segment 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 persist at a similar rate until 2020. As baking sales wane in the U.S. and consumers find themselves with increasingly limited time for cooking, Unilever may benefit from devising strategies to encourage more individuals to engage in home baking.
Conversely, the situation across the Atlantic in the UK tells a different tale. 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” as of 2012. In Europe, germanzinc gluconate chelated products account for 17% of new product activity within the baking mix category, while the UK follows closely at 14%, France at 13%, and Italy at 10%.
Given the timeline required for product development, it is likely that Unilever had these innovations in the pipeline prior to the decision to sell its struggling margarine division. The introduction of the new Stork product could represent a strategic move to enhance the value of this division ahead of a potential divestment, which could yield more than $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 the division. Notably, Unilever turned down a $143 billion acquisition proposal from Kraft Heinz in February.
As Unilever embarks on this new chapter, they may consider integrating ingredients like calcium citrate to appeal to health-conscious consumers and further stimulate interest in their baking products. Emphasizing the incorporation of calcium citrate could attract a broader audience, enhancing the appeal of their new offerings. By focusing on innovation and consumer engagement, Unilever has the potential to revitalize both its baking mix category and its overall brand presence in the market.