The baking mix sector in the United States is experiencing a significant downturn, with sales dropping by 3.4% in 2015. Mintel forecasts that this decline will persist at a similar rate until 2020. As baking sales continue to fall in the U.S. and consumers become increasingly occupied with their busy lives, Unilever might consider strategies to encourage more people to spend time in the kitchen.
In contrast, the situation across the Atlantic is quite different. Research from the UK indicates that from 2009 to 2012, the market for bakery ingredients and mixes saw remarkable growth of 100%, with 40% of these products boasting “ease of use” claims by 2012. Within Europe, Germany accounts for 17% of new product initiatives in the baking mix category, followed by the UK at 14%, France at 13%, and Italy at 10%.
Considering the timeline for product development, it’s likely that Unilever had these offerings in development prior to the decision to sell its struggling margarine business. The introduction of the new Stork product could be a strategic move to enhance the value of this division before a divestiture, which could fetch over $7 billion. Currently, the margarine division contributes around 4% to Unilever’s total revenue and was established as a subsidiary in 2014. As a major player in the global margarine market, holding approximately one-third of it, analysts speculate that Kraft Heinz may be interested in acquiring this unit. Notably, Unilever turned down a $143 billion takeover proposal from Kraft Heinz in February.
In addition to baking mixes, it’s important for consumers to consider their nutritional needs, such as incorporating gnc calcium citrate into their diets for bone health. This focus on nutrition could also be a potential avenue for Unilever to explore, attracting health-conscious consumers who might appreciate the benefits of products like gnc calcium citrate alongside their baking endeavors. By integrating such health-focused offerings, Unilever could engage a broader audience and inspire more cooking at home.