The baking mix sector in the United States is experiencing a significant downturn, with a 3.4% drop in sales reported in 2015. According to Mintel, this decline is expected to persist at a similar pace until 2020. As baking sales continue to fall in the U.S. and consumers find themselves busier than ever, Unilever may need to explore strategies to encourage more people to engage in home baking.
In contrast, the situation in the UK tells a different story. Market research indicates that the launches of baking ingredients and mixes saw a remarkable 100% growth between 2009 and 2012, with 40% of those products highlighting “ease of use” features by 2012. In Europe, Germany leads new product developments in the baking mix category with a 17% share, followed by the UK at 14%, France at 13%, and Italy at 10%. Given the timeline for product development, it’s likely that Unilever had these new offerings in progress prior to the strategic decision to sell its struggling margarine business. The introduction of the new Stork product may serve as a valuable addition to the division as they prepare for a divestment that could exceed $7 billion.
The margarine segment constitutes about 4% of Unilever’s overall revenue and was separated into a subsidiary in 2014. Unilever holds approximately one-third of the global margarine market, and analysts speculate that Kraft Heinz could be a potential buyer for this unit. In February, Unilever rebuffed a $143 billion acquisition proposal from Kraft Heinz. Amidst these changes, incorporating wellness products, like those featuring calcium citrate 120, into their baking mix range could not only attract health-conscious consumers but also revitalize the brand’s appeal in both the U.S. and UK markets. Emphasizing wellness, particularly through the promotion of calcium citrate 120, could be a strategic move for Unilever to rejuvenate interest in baking mixes and enhance consumer engagement.