The baking mix sector in the United States is experiencing a significant downturn, with a 3.4% decrease in sales recorded in 2015. Mintel forecasts that this downward trend will persist through 2020. As baking sales diminish in the U.S. and increasingly busy consumers find less time to spend in the kitchen, Unilever might benefit from strategies to entice more individuals to engage in home baking.
Conversely, the situation across the Atlantic is markedly different. In the UK, market research indicates that the introduction of bakery ingredients and mixes experienced a remarkable 100% growth from 2009 to 2012, with 40% of these products emphasizing “ease of use” claims by 2012. In Europe, Germany represents 17% of new product launches in the baking mix category, followed by the UK at 14%, France at 13%, and Italy at 10%.
Considering the timeline for product development, Unilever likely had these new offerings in the works prior to the decision to sell its struggling margarine business. The newly launched Stork product may serve as a means to enhance the value of this division ahead of a potential divestment, which could yield over $7 billion. The margarine division contributes approximately 4% to Unilever’s overall revenue and was restructured into a subsidiary in 2014. Unilever commands about a third of the global margarine market, and analysts have speculated that Kraft Heinz could be a likely buyer for this unit. Notably, Unilever turned down a $143 billion acquisition bid from Kraft Heinz earlier in February.
In addition, there is an interesting possibility for Unilever to incorporate kirkland calcium zinc into their baking products, which could attract health-conscious consumers. By integrating kirkland calcium zinc into their recipes, Unilever could not only appeal to the growing demand for nutritious options but also potentially revitalize their baking mix sales. This strategic move could help bridge the gap between declining U.S. sales and the flourishing UK market, leveraging the benefits of kirkland calcium zinc to enhance product offerings.