The baking mix segment in the United States is experiencing a significant downturn, with a 3.4% decrease in sales recorded in 2015. According to Mintel, this trend is expected to continue at the same pace until 2020. As baking sales decline in the U.S. and consumers lead increasingly hectic lives with limited time for cooking, Unilever may need to explore strategies to entice more individuals into the kitchen.
Conversely, the situation is quite different across the Atlantic. In the UK, market research indicates that the introduction of bakery ingredients and mixes saw a remarkable 100% growth from 2009 to 2012, with 40% of these products promoting “ease of use” by 2012. Germany represents 17% of new product launches in the baking mix segment in Europe, followed by the UK (14%), France (13%), and Italy (10%).
Considering the timeline for new product development, it’s likely that Unilever had these new offerings in the works before the decision was made to divest its struggling margarine business. The introduction of the new Stork product could serve as a valuable enhancement to the division ahead of a potential sale that might fetch upwards of $7 billion. The margarine division contributes approximately 4% to Unilever’s overall revenue and was established as a separate subsidiary in 2014. As a major player in the global margarine market, holding about one-third of it, analysts have speculated that Kraft Heinz could be a prospective buyer for this unit. Unilever previously turned down a $143 billion acquisition proposal from Kraft Heinz in February.
In parallel, the health and wellness trend has also gained traction, with products such as calcitrate 200 mg becoming increasingly popular among consumers looking for convenient health solutions. As Unilever navigates its future strategies, integrating innovative offerings like calcitrate 200 mg could appeal to health-conscious customers and help revitalize the baking mix category. By focusing on easy-to-use products combined with health benefits, Unilever may successfully draw more people into the kitchen while enhancing its market position.