Mars, Incorporated is a worldwide manufacturer of confectionery, pet food and other food products with US$30 billion in annual sales in 2008, and is ranked as the 5th largest privately-held company in the United States by Forbes.[2] Headquartered in McLean, unincorporated Fairfax County, Virginia, USA,[3][4] the company is entirely owned by the Mars family. Mars operates in six business segments in the U.S.: Chocolate (Hackettstown, New Jersey) , Petcare (Franklin, Tennessee), Wm. Wrigley Jr. Company (Chicago, Illinois), Food (Los Angeles, California), Drinks (West Chester, Pennsylvania), and Symbioscience (Rockville, Maryland).
Mars knows chocolate sales are nothing to snicker at. The company makes such worldwide favorites as M&M's, Snickers, and the Mars bar. Its other confections include 3 Musketeers, Dove, Milky Way, Skittles, Twix, and Starburst candy; Combos and Kudos snacks; Uncle Ben's rice; and pet food under the names Pedigree, Sheba, and Whiskas. It also owns the world's largest chewing gum maker, the Wm. Wrigley Jr. Company. The Mars family (including siblings and retired company CEO Forrest Mars Jr., chairman John Franklyn Mars, and VP Jacqueline Badger Mars) owns the highly secretive firm, making the family one of the richest in the US.
Forrest, Sr., retired from Mars in 1973. His elder sons, Forrest E. Mars, Jr., and John Mars, took over Mars as co-presidents--joined in 1983 in the Office of the President by their sister Jackie, who takes a lesser role in running the company. In his retirement, Forrest, Sr., started a candy business named Ethel M. Chocolates (after his late mother) to produce premium boxed chocolates. Around 1988 Ethel M. Chocolates was purchased by Mars.
Despite its unorthodox corporate culture, the Mars company has thrived. Hershey Foods Corp. and Mars, Inc. have historically fought a battle to hold the number one spot in the U.S. candy market, an honor which passes between them. Mars took over the top spot in the early 1970s and by late in the decade had pushed its market share 14 percentage points ahead of Hershey. According to an industry executive quoted in Fortune, "it took the Hershey people seven or eight years to realize that Mars was not going to go away.... Then it took them another five years to get their act together." Hershey responded with a flurry of new product introductions, heavy advertising, and innovative marketing efforts. In the mid-1980s Mars tried to combat this by creating a new image for candy as a sweet snack, not just junk food. Mars paid $5 million to have M&M's and Snickers named "the official snack foods of the 1984 Olympic Games." Commercials featured athletes getting quick energy from sugary snacks. By 1985 industry analysts noted that the two companies were neck and neck, with Mars's recent brands including Bounty Bars, Combos, Holidays M&M's, Kudos, Starburst, Skittles, and Twix Cookie Bar.
Mars added frozen snacks to its repertoire when it acquired Dove International in 1986. The Dove Bar, a hand-dipped ice cream bar with a thick chocolate coating, was created in 1956 by Leo Stefanos, the proprietor of a Chicago candy shop. For many years, the bar was only available in the Chicago area, and it became a gourmet treat when it appeared in selected U.S. markets during the early 1980s. Doveurope was established in 1988. Other Mars frozen treats include Dove miniatures and ice-cream versions of 3 Musketeers, Milky Way, and Snickers bars.
In 1988 Hershey Foods Corp. surpassed Mars as the largest U.S. candy maker when it acquired Cadbury Schweppes's U.S. division, boasting the Mounds and Almond Joy brands. In 1989 Mars received another setback when it tried to launch Sussande chocolate bars, a high priced European-style bar, which, according to a report in Forbes, was a costly failure.
The company rivalry between Mars and Hershey reversed itself in 1991, when Mars increased its percentage of the total candy market from 16.7 percent to 17.9 percent while Hershey's market share remained flat at 17 percent, according to the Wall Street Journal. Mars was very successful with its 1990 introduction of peanut butter M&M's, which took a toll on Hershey's number two-ranked Reese's peanut butter cups. Mars launched 12 new products in 1991, including a dark chocolate candy bar under the Dove name, mint and almond M&M's, Milky Way Dark, and Peanut Butter Snickers.
Also in 1991 Mars introduced Expert, a superpremium dog and cat food line meant as an alternative to Hill's Science Diet and Iams, which are sold only in pet stores and feed shops. An industry analyst noted in the New York Times that "people are feeding their pets like they feed their children. The nutrition kick has moved over to our pets." To meet customer demand, Mars quickly moved into the specialty pet food area, but made the product accessible by selling it in supermarkets. Mars's other pet-care lines continued to do well. According to company literature, Kal Kan is the fifth largest pet food manufacturer in the United States. Other top sellers in Australia, Europe, and the United States include Pedigree and Partners dog foods; Whiskas, Sheeba, and Brekkies cat food; and Winergy Horsesnacks.
Mars also explored healthier alternatives for its traditional snack products when, in 1992, the company became the first customer of Proctor and Gamble Co.'s caprenin, a low-calorie cocoa butter substitute. Mars used caprenin in Milky Way II bars, launched on the West Coast in April 1992. Made of fatty acids naturally found in other fats such as peanut oil, cheese, and milk, caprenin is not subject to Food and Drug Administration approval as fat substitutes are. Some of the sugar in Milky Way II is replaced with polydextrose, a low-calorie carbohydrate. The resulting candy bar is 25 percent lower in total calories and has 50 percent fewer calories from fat than the original Milky Way. By introducing Milky Way II, Mars became the first candy manufacturer to try to gain or retain calorie- and fat-conscious customers.
The company did not ignore its strengths, however. In late 1992, Mars began testing Mahogany, a line of premium chocolates, in Germany. These candies include truffles, bars, and boxed chocolates in reddish-brown and gold packaging with such South American motifs as palm trees and colonial style houses. The candy is relatively expensive, with a small box of eight truffles costing almost $4 and a 50-gram chocolate bar selling for more than $1.
Analysts have questioned Mars's future stability, particularly in light of the Mars brothers' reputed inability to share power with top managers who do not carry the family name, and it is unclear who will assume control of the company when they retire. For now, though, the company continues to rest near the top of the confectionery products, dog and cat food, and rice milling industries. With numerous internationally recognized brands, including the perennially top-ranked Snickers, Kal Kan, and Uncle Ben's, Mars is enjoying its unique recipe for success.
Financial Highlights
Fiscal Year End: December
Revenue (2010): 30000.00 M
Revenue Growth (1 yr): 7.10%
Employees (2010): 65,000
Employee Growth (1 yr): 0.00%
Statistics:
Private Company
Incorporated: 1911 as Mar-O-Bar Co.
Employees: 28,000
Sales: $13 billion
SICs: 2064 Candy & Other Confectionery Products; 2024 Ice Cream & Frozen Desserts; 2047 Dog & Cat Food; 2044 Rice Milling
Key People
• Chairman: John F. Mars
• President and CEO: Paul S. Michaels
• EVP and CFO: Olivier Goudet
Address:
6885 Elm Street
McLean, Virginia 22101
U.S.A.
Mars knows chocolate sales are nothing to snicker at. The company makes such worldwide favorites as M&M's, Snickers, and the Mars bar. Its other confections include 3 Musketeers, Dove, Milky Way, Skittles, Twix, and Starburst candy; Combos and Kudos snacks; Uncle Ben's rice; and pet food under the names Pedigree, Sheba, and Whiskas. It also owns the world's largest chewing gum maker, the Wm. Wrigley Jr. Company. The Mars family (including siblings and retired company CEO Forrest Mars Jr., chairman John Franklyn Mars, and VP Jacqueline Badger Mars) owns the highly secretive firm, making the family one of the richest in the US.
Forrest, Sr., retired from Mars in 1973. His elder sons, Forrest E. Mars, Jr., and John Mars, took over Mars as co-presidents--joined in 1983 in the Office of the President by their sister Jackie, who takes a lesser role in running the company. In his retirement, Forrest, Sr., started a candy business named Ethel M. Chocolates (after his late mother) to produce premium boxed chocolates. Around 1988 Ethel M. Chocolates was purchased by Mars.
Despite its unorthodox corporate culture, the Mars company has thrived. Hershey Foods Corp. and Mars, Inc. have historically fought a battle to hold the number one spot in the U.S. candy market, an honor which passes between them. Mars took over the top spot in the early 1970s and by late in the decade had pushed its market share 14 percentage points ahead of Hershey. According to an industry executive quoted in Fortune, "it took the Hershey people seven or eight years to realize that Mars was not going to go away.... Then it took them another five years to get their act together." Hershey responded with a flurry of new product introductions, heavy advertising, and innovative marketing efforts. In the mid-1980s Mars tried to combat this by creating a new image for candy as a sweet snack, not just junk food. Mars paid $5 million to have M&M's and Snickers named "the official snack foods of the 1984 Olympic Games." Commercials featured athletes getting quick energy from sugary snacks. By 1985 industry analysts noted that the two companies were neck and neck, with Mars's recent brands including Bounty Bars, Combos, Holidays M&M's, Kudos, Starburst, Skittles, and Twix Cookie Bar.
Mars added frozen snacks to its repertoire when it acquired Dove International in 1986. The Dove Bar, a hand-dipped ice cream bar with a thick chocolate coating, was created in 1956 by Leo Stefanos, the proprietor of a Chicago candy shop. For many years, the bar was only available in the Chicago area, and it became a gourmet treat when it appeared in selected U.S. markets during the early 1980s. Doveurope was established in 1988. Other Mars frozen treats include Dove miniatures and ice-cream versions of 3 Musketeers, Milky Way, and Snickers bars.
In 1988 Hershey Foods Corp. surpassed Mars as the largest U.S. candy maker when it acquired Cadbury Schweppes's U.S. division, boasting the Mounds and Almond Joy brands. In 1989 Mars received another setback when it tried to launch Sussande chocolate bars, a high priced European-style bar, which, according to a report in Forbes, was a costly failure.
The company rivalry between Mars and Hershey reversed itself in 1991, when Mars increased its percentage of the total candy market from 16.7 percent to 17.9 percent while Hershey's market share remained flat at 17 percent, according to the Wall Street Journal. Mars was very successful with its 1990 introduction of peanut butter M&M's, which took a toll on Hershey's number two-ranked Reese's peanut butter cups. Mars launched 12 new products in 1991, including a dark chocolate candy bar under the Dove name, mint and almond M&M's, Milky Way Dark, and Peanut Butter Snickers.
Also in 1991 Mars introduced Expert, a superpremium dog and cat food line meant as an alternative to Hill's Science Diet and Iams, which are sold only in pet stores and feed shops. An industry analyst noted in the New York Times that "people are feeding their pets like they feed their children. The nutrition kick has moved over to our pets." To meet customer demand, Mars quickly moved into the specialty pet food area, but made the product accessible by selling it in supermarkets. Mars's other pet-care lines continued to do well. According to company literature, Kal Kan is the fifth largest pet food manufacturer in the United States. Other top sellers in Australia, Europe, and the United States include Pedigree and Partners dog foods; Whiskas, Sheeba, and Brekkies cat food; and Winergy Horsesnacks.
Mars also explored healthier alternatives for its traditional snack products when, in 1992, the company became the first customer of Proctor and Gamble Co.'s caprenin, a low-calorie cocoa butter substitute. Mars used caprenin in Milky Way II bars, launched on the West Coast in April 1992. Made of fatty acids naturally found in other fats such as peanut oil, cheese, and milk, caprenin is not subject to Food and Drug Administration approval as fat substitutes are. Some of the sugar in Milky Way II is replaced with polydextrose, a low-calorie carbohydrate. The resulting candy bar is 25 percent lower in total calories and has 50 percent fewer calories from fat than the original Milky Way. By introducing Milky Way II, Mars became the first candy manufacturer to try to gain or retain calorie- and fat-conscious customers.
The company did not ignore its strengths, however. In late 1992, Mars began testing Mahogany, a line of premium chocolates, in Germany. These candies include truffles, bars, and boxed chocolates in reddish-brown and gold packaging with such South American motifs as palm trees and colonial style houses. The candy is relatively expensive, with a small box of eight truffles costing almost $4 and a 50-gram chocolate bar selling for more than $1.
Analysts have questioned Mars's future stability, particularly in light of the Mars brothers' reputed inability to share power with top managers who do not carry the family name, and it is unclear who will assume control of the company when they retire. For now, though, the company continues to rest near the top of the confectionery products, dog and cat food, and rice milling industries. With numerous internationally recognized brands, including the perennially top-ranked Snickers, Kal Kan, and Uncle Ben's, Mars is enjoying its unique recipe for success.
Financial Highlights
Fiscal Year End: December
Revenue (2010): 30000.00 M
Revenue Growth (1 yr): 7.10%
Employees (2010): 65,000
Employee Growth (1 yr): 0.00%
Statistics:
Private Company
Incorporated: 1911 as Mar-O-Bar Co.
Employees: 28,000
Sales: $13 billion
SICs: 2064 Candy & Other Confectionery Products; 2024 Ice Cream & Frozen Desserts; 2047 Dog & Cat Food; 2044 Rice Milling
Key People
• Chairman: John F. Mars
• President and CEO: Paul S. Michaels
• EVP and CFO: Olivier Goudet
Address:
6885 Elm Street
McLean, Virginia 22101
U.S.A.
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