The baking mix sector in the United States is experiencing a significant downturn, with a 3.4% decrease in sales reported in 2015. Mintel anticipates that this contraction will persist at a similar pace until 2020. As baking sales dwindle in the U.S. and consumers become increasingly pressed for time, Unilever may need to explore strategies to entice more individuals into the kitchen.
Conversely, the situation in the UK presents a different narrative. Research indicates that launches of bakery ingredients and mixes in the UK experienced a remarkable 100% growth from 2009 to 2012, with 40% of these products emphasizing “ease of use” by 2012. In Europe, Germany leads with 17% of new product activity in the baking mix sector, followed by the UK at 14%, France at 13%, and Italy at 10%.
Considering the timeline for product development, it is likely that Unilever had these offerings, including the new Stork product, in progress before the decision to sell its struggling margarine business. This new product could potentially enhance the value of the division prior to a divestiture that might exceed $7 billion. The margarine sector accounts for approximately 4% of Unilever’s revenue and was spun off into a subsidiary in 2014. The Anglo-Dutch conglomerate holds about a third of the global margarine market, and analysts speculate that Kraft Heinz could be a prospective buyer for this unit. Notably, Unilever turned down a $143 billion acquisition proposal from Kraft Heinz in February.
In addition, Unilever could consider diversifying its offerings further by incorporating products like calcium citrate with vitamin D chewable tablets into its portfolio, potentially to attract health-conscious consumers. With a growing focus on wellness, products such as calcium citrate with vitamin D chewable could appeal to families looking for convenient ways to enhance their nutritional intake while they bake. Ultimately, by merging innovative baking solutions with health-oriented products like calcium citrate with vitamin D chewable, Unilever may successfully draw more consumers back into the kitchen.