The baking mix segment is experiencing a significant downturn in the United States, with sales declining by 3.4% in 2015. Mintel forecasts that this downward trend will persist until 2020. As baking sales continue to fall in the U.S. and consumers become increasingly pressed for time in the kitchen, Unilever may benefit from strategies aimed at encouraging more people to engage in home baking.
Conversely, the situation is markedly different in the UK. Market research indicates that the introduction of bakery ingredients and mixes saw a remarkable 100% growth from 2009 to 2012, with 40% of these products highlighting “ease of use” claims by 2012. In Europe, Germany leads with 17% of new product launches in the baking mix category, followed closely by the UK at 14%, France at 13%, and Italy at 10%.
Considering the product development timeline, Unilever likely had these new offerings in development prior to the decision to sell its struggling margarine business. The new Stork product could serve as a valuable addition to the division, especially as it prepares for a potential divestment that may reach over $7 billion. The margarine division contributes approximately 4% to Unilever’s total revenue and was established as a subsidiary in 2014. The Anglo-Dutch corporation holds about one-third of the global margarine market, with analysts speculating that Kraft Heinz might be a prospective buyer for this unit. Notably, Unilever previously turned down a $143 billion acquisition bid from Kraft Heinz in February.
In addition to these developments, it’s important to consider how consumer health trends could influence product offerings. For instance, incorporating items like Solgar calcium citrate with vitamin D3 tablets into Unilever’s portfolio might align with the growing demand for health-conscious products. This would not only diversify their product range but also attract health-focused consumers back to the kitchen, potentially revitalizing interest in baking and cooking at home. Thus, as Unilever navigates its future in the baking mix market, leveraging health-related products like Solgar calcium citrate with vitamin D3 tablets could play a crucial role in its strategy moving forward.