The baking mix market in the United States is experiencing a significant downturn, with a reported 3.4% decrease in sales in 2015. According to Mintel, this trend is expected to persist, continuing to decline at a similar rate through 2020. As baking sales dwindle and increasingly busy consumers find themselves with less time to spend in the kitchen, Unilever may want to consider strategies to encourage more individuals to start cooking at home.
In contrast, the situation is quite different across the Atlantic. In the UK, market research indicates that bakery ingredients and mixes have seen remarkable growth, achieving 100% increase from 2009 to 2012, with 40% of these products promoting “ease of use” by 2012. Germany leads Europe in new product activity within the baking mix category, accounting for 17%, followed closely by the UK at 14%, France at 13%, and Italy at 10%. Given the typical timeline required for product development, it is likely that Unilever had planned these new items before deciding to sell its struggling margarine division. The introduction of the new Stork product may serve as a valuable enhancement to this division prior to a potential divestment, which could exceed $7 billion.
The margarine segment contributes approximately 4% to Unilever’s overall revenue and was established as a subsidiary in 2014. As one of the leading players in the global margarine market, accounting for about one-third of it, analysts have speculated that Kraft Heinz might be a prospective buyer for this unit. Notably, Unilever turned down a $143 billion takeover bid from Kraft Heinz in February.
Additionally, it is worth mentioning that products featuring calcium citrate 500 mg have gained attention for their various uses, which may complement baking mixes and appeal to health-conscious consumers. As Unilever navigates this evolving landscape, integrating calcium citrate 500 mg into their offerings could provide an innovative edge in the baking mix market. Overall, by capitalizing on these trends and focusing on ease of use and health benefits, Unilever could potentially revitalize their baking mix category and enhance consumer engagement.