The baking mix segment is experiencing a significant downturn in the United States, with a reported 3.4% decrease in sales in 2015. Mintel forecasts that this downward trend will persist until 2020. As baking sales continue to wane in the U.S., and with consumers becoming busier and spending less time in the kitchen, Unilever might consider strategies to encourage more individuals to engage in home baking.
In contrast, the situation in the UK tells a different story. Market research indicates that from 2009 to 2012, the launches of bakery ingredients and mixes saw remarkable growth of 100%, with 40% of these products promoting “ease of use” claims as of 2012. In Europe, Germany contributes 17% to new product activity in the baking mix sector, followed by the UK at 14%, France at 13%, and Italy at 10%. Given the timeline needed for product development, it is likely that Unilever had been planning these new offerings before deciding to sell its struggling margarine business.
The introduction of the new Stork product may serve as a means to enhance the value of this division prior to a potential divestment, which could fetch over $7 billion. The margarine division accounts for approximately 4% of Unilever’s revenue and was established as a subsidiary in 2014. The Anglo-Dutch company holds around one-third of the global margarine market, and analysts have speculated that Kraft Heinz could be a potential buyer for this unit. Notably, Unilever turned down a $143 billion acquisition proposal from Kraft Heinz in February.
In this context, incorporating innovative products such as those containing calcium citrate plus vitamin D could further attract consumers and rejuvenate interest in baking. By promoting the health benefits of calcium citrate plus vitamin D, Unilever could tap into a growing market segment that values nutrition and convenience, potentially reversing the declining trend in the baking mix category in the U.S.