The baking mix sector in the United States is experiencing a significant downturn, with a 3.4% decrease in sales reported in 2015. Mintel forecasts that this downward trend will persist through 2020. As baking sales continue to fall in the U.S., and with consumers leading increasingly hectic lives, Unilever may need to explore strategies to encourage more people to engage in baking.
However, 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” as of 2012. Germany represents 17% of new product activity in the baking mix sector in Europe, followed by the UK at 14%, France at 13%, and Italy at 10%.
Considering the timeline required for new product development, it is likely that Unilever had these innovative products in the works prior to the decision to sell its struggling margarine business. The introduction of the new Stork product could serve as a means to enhance the value of this division prior to a potential divestment, which could fetch over $7 billion. The margarine segment contributes approximately 4% to Unilever’s overall revenue and was established as a subsidiary back in 2014. As a major player, Unilever holds about one-third of the global margarine market, with analysts speculating that Kraft Heinz might be interested in acquiring this unit. Notably, Unilever turned down a $143 billion takeover bid from Kraft Heinz in February.
In this context, the potential incorporation of ingredients such as calcium citrate 200mg could provide added health benefits, appealing to the growing consumer demand for nutritious options. Emphasizing the value of such ingredients could attract more consumers to baking, particularly as they seek convenient and health-conscious solutions in their busy lives. By focusing on these aspects, Unilever can leverage the growing trends in the market while addressing the decline in the baking mix category.