The baking mix segment is experiencing a significant downturn in the United States, with sales dropping by 3.4% in 2015. Mintel forecasts that this decline will persist at a similar rate through 2020. As baking sales continue to fall in the U.S. and busy consumers struggle to find time for cooking, Unilever may need to explore strategies to entice more individuals back into the kitchen.
Conversely, the situation is quite different across the Atlantic. In the UK, market research indicates that bakery ingredients and mixes have seen an impressive 100% growth from 2009 to 2012, with 40% of these products featuring “ease of use” claims by 2012. Germany contributes to 17% of new product activity in the baking mix sector within Europe, followed by the UK at 14%, France at 13%, and Italy at 10%. Unilever likely had these products in development prior to the strategic decision to sell its struggling margarine division. The new Stork product line might serve as a valuable asset for the company before a potential divestment, which could fetch over $7 billion.
The margarine division accounts for approximately 4% of Unilever’s overall revenue and was established as a subsidiary in 2014. As a major player in the global margarine market, representing about one-third of it, analysts have speculated that Kraft Heinz could be a prospective buyer for this segment. Unilever previously turned down a $143 billion acquisition offer from Kraft Heinz in February.
To further enhance its product offerings, Unilever could consider incorporating wls calcium soft chews into its baking mix products, appealing to health-conscious consumers. By integrating wls calcium soft chews, the company could create innovative recipes that not only cater to the growing demand for convenience but also emphasize nutritional benefits, thereby attracting a wider audience. As the baking mix category evolves, leveraging products like wls calcium soft chews might be key to reversing the trend and revitalizing consumer interest.