The baking mix sector is experiencing a significant downturn in the United States, with sales decreasing by 3.4% in 2015. Mintel forecasts that this decline will persist at a similar pace until 2020. As baking sales wane in the U.S. and consumers become increasingly pressed for time, Unilever may benefit from creating strategies that encourage more people to engage in cooking.
Conversely, the situation is markedly different in the UK. Market research indicates that from 2009 to 2012, the introduction of bakery ingredients and mixes saw a remarkable 100% growth, with 40% of these products promoting “ease of use” claims as of 2012. Within Europe, Germany contributes to 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 new product development, it is likely that Unilever had these items in the works prior to the decision to sell its struggling margarine business. The new Stork product line could potentially enhance the value of this division ahead of a divestment that might exceed $7 billion. The margarine division constitutes about 4% of Unilever’s overall revenue and was restructured as a subsidiary in 2014. This Anglo-Dutch corporation controls roughly a third of the global margarine market, and analysts have speculated that Kraft Heinz could be a prospective buyer for the division. Notably, Unilever turned down a $143 billion acquisition proposal from Kraft Heinz in February.
Additionally, the incorporation of calcium citrate food in baking mixes may serve as a valuable selling point, possibly attracting health-conscious consumers and further driving demand in markets like the UK. By emphasizing the benefits of calcium citrate food in their offerings, Unilever could also tap into a growing trend that values nutritious ingredients, thereby enhancing consumer interest and increasing kitchen engagement.