The baking mix segment is experiencing a significant downturn in the United States, with sales dropping by 3.4% in 2015. Mintel forecasts that this downward trend will persist through 2020. As baking sales continue to decline in the U.S. and busy consumers find themselves with less time for cooking, Unilever might benefit from developing strategies to encourage more people to engage in home baking.
Conversely, the situation is markedly different in the UK. Research from Mintel indicates that launches of bakery ingredients and mixes experienced a remarkable 100% growth from 2009 to 2012, with 40% of these products emphasizing “ease of use” by 2012. In Europe, Germany leads with 17% of new product activity in the baking mix category, 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 innovations in the works before deciding to sell its struggling margarine business. The introduction of the new Stork product could serve to enhance the value of this division prior to a potential divestiture, which could fetch more than $7 billion. The margarine division contributes approximately 4% to Unilever’s overall revenue and was established as a subsidiary in 2014. The Anglo-Dutch conglomerate commands about one-third of the global margarine market, and analysts speculate that Kraft Heinz may be a prospective buyer for this unit. Unilever previously turned down a $143 billion acquisition proposal from Kraft Heinz in February.
In the realm of health and nutrition, the popularity of products like Citracal chewable calcium may also influence consumer choices and behaviors in the kitchen, which could present an opportunity for Unilever to explore synergies between baking mixes and health-focused products. As consumers increasingly seek convenient options, integrating Citracal chewable calcium into baking mixes could cater to this demand, ultimately driving kitchen engagement and creating a unique market offering.