Dive into the secretive world of Mars, Incorporated, a candy and pet care titan. Uncover the fascinating origins of iconic treats like M&M’s and Snickers, and explore the family dynamics behind this private empire. Learn about the transformational journey of Frank Mars, from childhood struggles to candy mogul, and discover how the company evolved into a powerhouse in pet food. Plus, explore innovative marketing strategies and the chocolate-making process, revealing the sweet secrets that shaped the industry.
Mars Incorporated's journey from founding to a major chocolate manufacturer was shaped by founder Frank Mars's early challenges and eventual focus on chocolate production.
The competitive landscape between Mars and Hershey highlighted the impact of early marketing strategies and product innovation on chocolate consumption in America.
Mars's innovative marketing tactics, such as memorable slogans and targeted advertising, significantly contributed to the brand’s dominance in the confectionery industry.
The company's successful expansion into pet care products showcases Mars's strategic diversification and recognition of changing consumer dynamics in family structures.
World War II marked a pivotal moment for Mars as M&Ms became associated with soldiers, establishing a lasting cultural connection and driving post-war sales growth.
Deep dives
Varieties of M&Ms
The discussion highlights the numerous varieties of M&Ms available today, which include classics like milk chocolate, peanut, and almond M&Ms, along with newer additions such as peanut butter, crispy, caramel, and special seasonal flavors. Some flavors are discontinued or limited to holidays, with mint M&Ms being a seasonal offering. Additionally, unique flavors like fudge brownie and birthday cake M&Ms were mentioned, showcasing the brand's attempt to attract different consumer preferences. Despite the variety, the conversation concludes that the most significant selling varieties remain the milk chocolate and peanut versions.
The History of Mars Incorporated
Mars Incorporated’s origins trace back to the personal and professional challenges faced by founder Frank Mars. Starting his candy business in Minneapolis, Frank struggled with multiple bankruptcies and a difficult personal life before turning the business around by focusing on chocolate manufacturing. His early experiences laid the foundation for one of the largest candy manufacturers in the world. As chocolate gained popularity, Frank Mars evolved from penny candy to creating innovative chocolate bars, ultimately leading to the establishment of Mars Incorporated as a household name.
The Role of Milton Hershey and Competition
The podcast discusses Milton Hershey's foundational influence on the American chocolate market, particularly his introduction of solid chocolate and mass production methods. Hershey's chocolate bars became iconic, with pricing strategies that targeted affordability but adversely affected quality over time. As Hershey’s brand became synonymous with chocolate, it inadvertently positioned itself against Mars, whose competition strategy would flourish during later decades. The rivalry became particularly salient during the mid-20th century when both companies vied for dominance in an expanding chocolate market.
Mars's Revenue Growth and Dominance
The growth of Mars into a dominant player in the confectionery industry is highlighted through its innovative marketing strategies and branding. M&Ms became synonymous with candy-coated chocolates, capturing significant market share thanks to targeted advertising and clever messaging, such as the famous slogan ‘melts in your mouth, not in your hand.’ With M&Ms surpassing Hershey's bar sales, Mars positioned itself as a leader in consumer preferences. This growth trajectory demonstrated the brand's ability to adapt to market conditions and consumer expectations.
Forrest Mars’s Vision and Strategy
Forrest Mars's ambitious vision drove the company to become a global food powerhouse spanning candy and pet care products. His strategies included diversifying product lines, expanding into international markets, and crafting a corporate culture centered around quality and responsibility. Additionally, Forrest implemented innovative marketing approaches that helped establish lasting consumer connections. This entrepreneurial spirit combined with a focus on quality allowed Mars to thrive, making it a formidable force against other major competitors.
The Impact of World War II
World War II dramatically affected the candy industry, providing Mars with significant opportunities to serve military contracts for its famous M&Ms product. M&Ms became essential during the war due to their resistance to melting and were distributed to soldiers, building a strong brand association and customer base. This pivotal moment solidified their place in American culture post-war, leading to an increase in civilian consumption. Mars capitalized on the military's demand for portable, shelf-stable candy, setting the stage for the brand's explosion in popularity.
The Intersection of Pet Care and Candy
Mars’s diversification into the pet care industry reflects the company's strategic foresight and adaptability. Recognizing the growing importance of pets as family members, Mars expanded its portfolio to include pet food brands, leading to significant revenue expansion. The addition of pet hospitals further entrenched Mars's position in the pet care market, allowing cross-promotion of products. This dual strategy not only safeguarded against market fluctuations in candy but also created a sustainable revenue stream.
Ethel M Chocolates and Legacy
Ethel M Chocolates, established by Forrest Mars in honor of his mother, focuses on premium chocolates, including liquor-filled varieties, highlighting Mars's commitment to quality. Set in Henderson, Nevada, this venture exemplifies Forrest's entrepreneurial spirit even in late adulthood. Ethel M has since become a notable brand, catering to a different segment of the chocolate market compared to mainstream offerings. It showcases Mars's broader strategy of tapping into niche markets across their diverse range of product lines.
The Power of Marketing in Confectionery
The success of Mars in the candy industry can be attributed significantly to its innovative marketing strategies and branding efforts in the latter half of the 20th century. TV commercials, sponsorships of popular shows, and memorable slogans, such as that for M&Ms, have kept Mars at the forefront of consumer consciousness. By consistently refreshing its branding and engaging with contemporary cultural moments, Mars has managed to sustain a strong market presence. This focus on marketing has allowed the company to thrive, even against fierce competition from other established brands.
Future Prospects and Innovations
As Mars continues to expand its product offerings, including recent moves into plant-based snacks and pet products, it remains well-positioned for future growth. The acquisition of Kind and interest in companies like Kelanova reflect a strategy focused on diversification and adaptation to current consumer trends. The company’s historical dedication to innovation and quality supports a vibrant pipeline for new products. With a keen eye on sustainability and health trends, Mars is likely to maintain its competitive advantage in the evolving market landscape.
M&M’s, Snickers, Milky Way, Double Mint, Ben’s Rice, Pedigree, Whiskas, VCA, Banfield… all the brands you know, owned by the company you know nothing about: Mars, Incorporated. And Mars itself is 100% owned and deeply intertwined with the Mars family, who are currently the second wealthiest (and perhaps first most secretive!) family in the United States. Tune in for one of the 20th century’s most incredible entrepreneurial stories across candy and pet care, and one that’s all the more incredible because it’s so little-known!
Sponsors:
Many thanks to our fantastic Fall ‘24 Season partners:
Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
