mars business plan

Mars: Balancing Planet Preservation & Rapid Growth

Purpose can be seen as the enemy of profit, but Mars is proving it can work hand-in-hand. 

Poul Weihrauch, CEO and Office of the President at Mars, says: “As I have said many times before, profit and purpose are not enemies.

“Doing the right thing does not mean a trade-off between planet and productivity, or between environment and employment.”

For 113 years the company has been making sweet snacks and has expanded to more than 170 markets worldwide.

Mars’ value chain impacts around one million people, so taking on sustainability initiatives has the potential for huge impact. 

The company’s 2023 Sustainable in a Generation Report shows environmental improvements alongside enormous growth of around 60%. 

Poul says: “This is not easy, and I am not pretending we have all the answers.

“We are living in complex times, and we have to step up and deliver together in order to achieve a more sustainable future for all.”

Mars’ sustainability strategy 

In 2017, Mars launched the multi-billion dollar Sustainable in a Generation Plan.

The plan is aligned with the United Nations’ Sustainable Development Goals and involves building partnerships with NGOs, governments and within the industry to reach net zero greenhouse gas (GHG) emissions by 2050 against its 2015 baseline.

The plan aims to deliver a 50% reduction in GHG emissions by 2030.

The company’s goals are science-aligned and focus on reducing environmental impacts across its value chain to support people and the planet.

The plan is focussed on four ‘priority areas’: 

• Healthy Planet 
• Thriving People 
• Nourishing Wellbeing 
• Rethinking Packaging

Mars’ new sustainable agriculture initiatives

Almost 60% of Mars’ value chain GHG footprint comes from agricultural ingredients, so the company has decided to scale up new ‘climate smart’ agriculture.

These initiatives aim to drive continued decarbonisation alongside improving soil health and farm resilience whilst providing financial support and training for farmers. 

Barry Parkin , Chief Sustainability and Procurement Officer at Mars, says: “It is critically important to strengthen our programs with farmers to help the transition to climate smart and regenerative agriculture.” 

• Working with partners to establish a grower-centric programme
• Extending a partnership between Mars brand Royal Canin and Soil Capital
• Continuing to support the Next Generation Soil programme in Mexico and Brazil
• US$47m sustainable dairy plan ‘Moov’ing Dairy Forward’

Healthy Planet

Mars’ Healthy Planet priority focusses on climate action, water stewardship and land use.

In 2023 alone, Mars achieved an 8% decrease in GHG emissions across its value chain, 16% below its 2015 baseline. 

The company uses simple measures, like insulating pipes, alongside making revolutionary strides in manufacturing processes.

It sources 59% renewable electricity in support of its commitment to 100% renewable energy by 2040. 

Mars maintains the use of 100% deforestation free palm and palm kernel oil that it buys directly and has achieved 96% traceability to plantation.

Rice accounts for 66% of Mars’ unsustainable water usage , so the company is partnering in a joint project with three other multinational companies and a range of experienced partners in the rice sector to implement practices to reduce this.

Thriving People

Mars’ Thriving People priority focusses on increasing income, respecting human rights and unlocking opportunities for women .

The company employs more than 150,000 associates in more than 70 markets and impacts thousands of additional jobs through its global value chain.

Amanda Davies, Vice President of Global Research and Development, Sustainability and Commercial at Mars Snacking, says: “We are proud of our progress but recognise the need to continually assess our programs to ensure that we are meeting our targets.

“Our Thriving People ambition focusses on increasing smallholder farmers’ incomes, respecting human rights and unlocking opportunities for women to build a brighter, more inclusive future for all.”

Since starting this initiative, Mars’ programmes have reached around 750,000 people in its supply chain. This includes 142,000 farmers and 103,000 women. 

Nourishing Wellbeing

Mars’ Nourishing Wellbeing priority aims to advance science, innovation and marketing.

Gülen Bengi, Lead Chief Marketing Officer at Mars, says: “Ensuring that our associates and partners uphold our commitment to market our brands responsibly is non-negotiable.”

Launched in 2007, Mars’s Marketing Code commitments avoid marketing to children under 13, instead equipping parents with information to decide what’s right for their child’s diet. 

The commitments ensure that Mars doesn’t undermine the pursuit of healthy, balanced diets and active lifestyles.

By 2025 the company aims to deliver 5.5 billion healthy meals per year and a 5% reduction in sodium.

So far, Mars is delivering 3.1 billion healthy meals, 120 million servings of fibre and 346 servings of vegetables per year.

In 2023, Mars delivered a 5.1% reduction in sodium, beating its target two years ahead of schedule. 

Emma Reynolds, Global Vice President of Corporate Affairs at Mars Food and Nutrition, says: “We want to help people eat better by making food healthy, tasty and accessible.

“We are proud of our progress and are committed to doing more, helping consumers make healthier choices in their daily lives.”

Rethinking packaging

Packaging plays an important role in keeping products safe and fresh to avoid food waste, but leads to Mars selling 210,000 tonnes of plastics annually. 

Most plastics are made from fossil fuels and will never fully decompose, so the company is prioritising removing these from its packaging.

As of the end of 2023, it has removed 99% of PVC from its packaging and is exploring alternative materials. 

Mars is working to bring about a circular economy where all packaging is recyclable, reusable or compostable. 

Although the company does not expect to fully meet the  Ellen MacArthur Foundation Global Commitments by the end of 2025, it is working hard to increase the share of its packaging designed for circularity and has increased this to 61%.

Balancing sustainability and growth  

Alongside delivering these impressive environmental and social results, Mars has grown over 60% in the same period to more than US$50bn in annual sales. 

Poul Weihrauch, CEO and Office of the President at Mars says: “Running a financially fit and a sustainable business are not two mutually exclusive things. In fact, they are self reinforcing in my opinion.

“Running a profitable business is the only way we can generate the resources necessary to invest and make a real difference to people, pets and planet.

“And when we run a sustainable business, it helps ensure we have a healthy planet where our consumers, clients and stakeholders thrive, while remaining an attractive place to work, grow and develop.”

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Kellanova shareholders approve proposed acquisition by Mars

CHICAGO — Kellanova shareholders have voted overwhelmingly in favor of the snack maker’s $35.9 billion deal to be acquired by Mars Inc.

In a special meeting on Nov. 1, more than 99.5% of the 266,772,146 shareholder votes cast gave the go-ahead to the merger agreement, Chicago-based Kellanova reported in a Nov. 4 filing with the Securities and Exchange Commission. Shareholders participating in the vote represented approximately 77.5% of Kellanova’s outstanding shares of common stock, according to the filing.

In another vote at the meeting, 58% of voting shareholders rejected the merger’s proposed executive compensation package, the filing said.

Kellanova and McLean, Va.-based Mars announced the acquisition deal on Aug. 14. Under the transaction, Mars agreed to buy Kellanova for $83.50 per share in cash. The agreement will take publicly held Kellanova private into family-owned Mars.

In reporting third-quarter results last week, Kellanova again said that the transaction is expected to be finalized in the first half of 2025, now pending regulatory clearance and other customary closing conditions.

For the quarter, Kellanova’s net income rose 36% year-over-year, while organic net sales climbed 6.1%. The company didn’t provide any forward-looking guidance or hold a call with analysts because the quarterly report came on the eve of the shareholder vote.

Steven Cahillane, chairman, president and chief executive officer, said the latest quarterly results reflect the company’s “more growth-oriented and profitable portfolio as Kellanova” – referring to the October 2023 spinoff from Kellogg Co. – and show that Kellanova is “executing at a high level as we prepare for our exciting next chapter as part of a global snacking powerhouse with Mars.”

When the merger was announced, Mars said adding Kellanova would help drive its plan to double the Mars Snacking business over the next decade . That business unit already includes 15 billion-dollar brands, and Kellanova would add another two – Pringles and Cheez-It – plus boost Mars’ presence in better-for-you snacks with the addition of brands like RXBAR and Nutri-Grain.

Mars is known mainly for candy and chocolate brands like Snickers, M&M’s, Mars, Twix, Dove, Milky Way, 3 Musketeers, Skittles, Extra, Wrigley’s Doublemint, Life Savers and Starburst. Acquiring Kellanova would bring Mars into the cracker, salty snacks, bar and breakfast sections of the grocery store via such popular brands as Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, Nutri-Grain and RXBAR, along with Eggo in the frozen breakfast category.

Under the merger, Kellanova is slated to be integrated into Mars Snacking, led by global president Andrew Clarke and based in Chicago. 

“This acquisition would be one of the largest deals ever in the packaged foods space, and one that could spark more consolidation among food companies,” CFRA Research analyst Arun Sundaram said in a research note on the merger deal back in August.

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