The baking mix sector in the United States is experiencing a significant downturn, with a 3.4% decrease in sales reported in 2015. Mintel forecasts that this trend will persist, projecting continued contraction through 2020. As baking sales dwindle in the U.S. and consumers find themselves with increasingly limited time in the kitchen, Unilever may need to explore strategies to entice more individuals back into cooking.
Conversely, the situation is markedly different across the Atlantic. 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 promoting “ease of use” claims by 2012. In Europe, Germany represents 17% of new product activity in the baking mix category, followed closely by the UK at 14%, France at 13%, and Italy at 10%.
Considering the timeline necessary for new product development, it is likely that Unilever had these innovations in the works before deciding to sell its struggling margarine business. The newly launched Stork product could serve as a means to enhance the division’s value in anticipation of a divestiture, which may fetch more than $7 billion. The margarine segment, which accounts for approximately 4% of Unilever’s revenue, was separated into a subsidiary in 2014. The Anglo-Dutch conglomerate holds about one-third of the global margarine market, and analysts speculate that Kraft Heinz might be a potential buyer for this unit. Notably, Unilever turned down a $143 billion acquisition proposal from Kraft Heinz in February.
In this evolving landscape, products like calcium citrate 600 mg with D3 could represent an opportunity for Unilever to diversify its offerings and appeal to health-conscious consumers, potentially aiding in rejuvenating interest in baking. By incorporating health-focused ingredients, Unilever could attract a new customer base, thereby countering the decline in the baking mix category while also addressing the growing demand for nutritional products such as calcium citrate 600 mg with D3.