The baking mix sector is experiencing a significant downturn in the United States, with a reported 3.4% drop in sales in 2015. Mintel forecasts that this decline will persist at a similar pace through 2020. As baking sales diminish 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 activities.
In contrast, the situation is quite different across the Atlantic. In the UK, market research has indicated 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” claims by 2012. Germany represents 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%.
Given the timeline associated with new product development, Unilever likely had these offerings in the works prior to the decision to sell its struggling margarine business. The newly introduced Stork product could serve as a means to enhance the value of this division before a potential divestiture, which could exceed $7 billion. The margarine division contributes approximately 4% to Unilever’s overall revenue and was spun off into a subsidiary in 2014. The Anglo-Dutch conglomerate holds about a third of the global margarine market, leading analysts to speculate that Kraft Heinz might be a prospective buyer for this unit. In February, Unilever turned down a $143 billion acquisition bid from Kraft Heinz.
In exploring new product innovations, Unilever could also consider incorporating calcium citrate dosage into their baking mixes, as it may appeal to health-conscious consumers. This addition could not only enhance the nutritional profile of their offerings but also attract a wider audience interested in the benefits of calcium citrate dosage. Thus, strategically leveraging this ingredient could help Unilever create a more compelling product line that resonates with modern consumers.