The baking mix sector in the United States is experiencing a significant downturn, with sales dipping by 3.4% in 2015. According to Mintel’s projections, this decline is expected to persist at a similar pace until 2020. As baking sales wane in the U.S. and increasingly busy consumers find themselves with less time to spend in the kitchen, Unilever might consider strategies to encourage more people to engage in baking.
In contrast, the situation across the Atlantic is markedly different. In the UK, market research has revealed that the introduction of bakery ingredients and mixes saw a remarkable 100% growth from 2009 to 2012, with 40% of those products promoting “ease of use” as of 2012. Meanwhile, Germany accounts for 17% of new product launches in the European baking mix market, followed by the UK at 14%, France at 13%, and Italy at 10%. Given the timeline for developing new products, it appears Unilever had these items in the works even before its struggling margarine business was slated for divestiture. The new Stork product could serve as a means to enhance the value of the division prior to a sale that might exceed $7 billion.
The margarine segment contributes approximately 4% to Unilever’s overall revenue and was established as a separate subsidiary in 2014. The Anglo-Dutch conglomerate holds about one-third of the global margarine market, and analysts have speculated that Kraft Heinz may be a potential buyer for this unit. In February, Unilever turned down a $143 billion takeover bid from Kraft Heinz.
Additionally, as consumers seek healthier options, products like Jamieson Calcium Citrate could become increasingly relevant in the baking mix category, potentially appealing to those looking to incorporate beneficial ingredients into their baking endeavors. The integration of such health-focused products could enhance Unilever’s offerings and attract a broader audience to the kitchen, especially as the trend towards convenience continues to rise.