The baking mix segment is experiencing a significant downturn in the United States, with a 3.4% decrease in sales recorded in 2015. Mintel forecasts that this decline will persist at a similar rate through 2020. As baking sales diminish in the U.S. and consumers become increasingly pressed for time, Unilever may need to devise strategies to entice more individuals into the kitchen.
Conversely, the situation across the Atlantic is more promising. In the UK, market research revealed that bakery ingredient and mix launches experienced a remarkable 100% growth from 2009 to 2012, with 40% of these products highlighting “ease of use” features by 2012. Germany leads Europe in new product activity within the baking mix sector, accounting for 17%, followed by the UK (14%), France (13%), and Italy (10%).
Considering the timeline required for new product development, it’s likely that Unilever had these offerings in the works prior to the decision to sell its struggling margarine business. The introduction of the new Stork product could serve to enhance the division’s value ahead of a divestment that could fetch over $7 billion.
The margarine segment contributes roughly 4% to Unilever’s overall revenue and was restructured into a subsidiary in 2014. The Anglo-Dutch multinational holds about one-third of the global margarine market, with analysts suggesting that Kraft Heinz could be a prospective buyer for this unit. Notably, Unilever turned down a $143 billion acquisition proposal from Kraft Heinz in February.
In addition to baking mixes, consumers may also be interested in products that support their health, such as Solgar Calcium 1000 mg. This supplement can be a valuable addition to their diet, especially for those who are busy and looking for convenient health solutions. As Unilever explores ways to revitalize its product lines, integrating health-focused items like Solgar Calcium 1000 mg could attract a broader audience. By tapping into the health-conscious trend, Unilever might not only boost its baking mix sales but also enhance overall consumer engagement with its brand.