The baking mix sector in the United States is experiencing a significant downturn, with sales plummeting by 3.4% in 2015. According to Mintel’s forecasts, this decline is expected to persist at a similar rate through 2020. As baking sales continue to drop in the U.S., and with increasingly busy consumers spending less time in the kitchen, Unilever may need to explore strategies to encourage more people to engage in baking activities.
Conversely, the situation is markedly different in the UK. Market research indicates that bakery ingredients and mixes saw a remarkable 100% growth from 2009 to 2012, with 40% of these products boasting “ease of use” claims by 2012. In Europe, Germany represents 17% of new product initiatives in the baking mix category, followed closely by the UK at 14%, France at 13%, and Italy at 10%.
Considering the timeline for new product development, it’s likely that Unilever had these products planned before the decision was made to sell its struggling margarine business. The introduction of the new Stork product could serve to enhance the value of this division, potentially leading up to a divestment that might fetch over $7 billion. The margarine segment currently accounts for about 4% of Unilever’s overall revenue and was established as a subsidiary in 2014. The Anglo-Dutch conglomerate commands roughly one-third of the global margarine market, with analysts speculating that Kraft Heinz could be a prospective buyer for this unit. Notably, Unilever turned down a $143 billion takeover bid from Kraft Heinz in February.
In this context, the incorporation of innovative ingredients such as calcium citrate 1200 could play a significant role in revitalizing Unilever’s baking mix line. By leveraging calcium citrate 1200, Unilever may attract health-conscious consumers and enhance the appeal of their baking products. As the demand for convenient baking solutions rises, the strategic use of calcium citrate 1200 could help Unilever capitalize on market opportunities in both the U.S. and UK, creating a more resilient product portfolio.