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JOURNEY · DETAIL
Mars, Incorporated: From a 1911 Family Candy Workshop to an Unlisted Giant in Pet Food and Snacks via Privatization and Brand M&A
Founded: Frank C. Mars, Forrest E. Mars Sr. · Mars Incorporated
JOURNEY
Key Fields
FIELD STAMPSIndustryFood & Drink
RegionMulti-region
ScaleGiant
ChannelOther
Origin
In 1911, Frank Mars hand-made butter toffees at his home in Tacoma, Washington, but the early business failed due to poor product sales, leading to the company's collapse in 1920. Refusing to give up, Frank started over with borrowed funds, launching the Milky Way chocolate bar in 1923 to achieve a market breakthrough, building a factory in Chicago in 1928, and gradually establishing scaled candy production. His son, Forrest Mars Sr., due to business philosophy conflicts with his father, was ousted from the family business in 1932 and went to Europe alone to develop his career, subsequently establishing factories in the UK, the Netherlands, and other countries. The father and son finally merged the two companies in 1967, forming a global candy empire.
Milestones
1911
Startup Failure Failure
In 1911, Frank Mars founded the company in Tacoma, Washington, hand-making butter toffees and chocolate confections. However, market response was lukewarm, and sales struggled to sustain operations, resulting in the company's collapse in 1920. Frank was forced to liquidate, but he did not give up, pivoting to try again. This experience made him realize the importance of industrial production and brand marketing, laying the foundation for the later launch of Milky Way. This stage lasted from 1911 to 1920.
1923
Brand Explosion Period Turning Point
In 1923, Frank launched the Milky Way chocolate bar, which quickly became popular due to its creamy caramel and rich chocolate flavor, becoming one of the best-selling candies in the US. A modern factory was built in Chicago in 1928, Snickers was launched in 1930, and M&M's was introduced in 1941—the latter becoming famous as U.S. military rations during WWII, causing sales to skyrocket and propelling Mars from a regional confectioner to a national brand. During this period, annual sales grew from tens of thousands of dollars to millions of dollars. This stage lasted from 1923 to 1941.
1967
Family Merger and Business Diversification Turning Point
In 1967, Frank reached a merger agreement with his son Forrest, integrating the U.S. business with the European overseas business to officially establish Mars Incorporated, ending the era of separate father-son rule. In 1968, Mars acquired Kal Kan, the largest pet food manufacturer in the US, having already established the Waltham Centre for Pet Nutrition in 1965, thereby entering the pet food sector. This stage laid the foundation for the company's dual-core 'candy + pet' business architecture, paving the way for subsequent global expansion. This stage lasted from 1967 to 1968.
2002
Premium and Category M&A Growth
In 2002, Mars acquired Royal Canin in France to strengthen its premium pet nutrition line; in 2007, it acquired the U.S. Banfield Pet Hospital chain to enter pet medical services; in 2008, it acquired the Wm. Wrigley Jr. Company for $23 billion, integrating the chewing gum business to form the Mars Wrigley division. This series of acquisitions placed Mars in the global top three for both candy and pet care, with annual revenue surpassing $30 billion. This stage lasted from 2002 to 2008.
2014
Mega M&A and Business Integration PMF
In 2014, Mars acquired most of Procter & Gamble's pet food business (including Iams and Eukanuba), further expanding its pet division; in 2020, it acquired health snack brand KIND; in December 2025, it completed the $36 billion acquisition of Kellanova (brands including Pringles, Pop-Tarts, and Cheez-It), one of the largest acquisitions in global food industry history, having received final U.S. and European regulatory approval. Post-merger, Mars snack food annual revenue reached $36 billion, with overall annual revenue exceeding $65 billion and approximately 147,000 employees. In 2026, Marc Carena was appointed Global Pet Food President, launching a pet food innovation initiative in partnership with Big Idea Ventures, collaborating with ADM and others on the supply chain side to promote regenerative agriculture ingredients, and investing $190 million to expand wet food production at the Querétaro plant in Mexico. This stage lasted from 2014 to 2025.
Turning Points
- The success of Milky Way in 1923 allowed Mars to transition from a manual workshop to industrial mass production, serving as a critical turnaround point.
- In 1932, Forrest was expelled from the U.S. by his father and forced to start an independent business in Europe. Later, the European business became half of the merged Mars empire.
- The 1967 father-son merger bridged the European and American markets, establishing the foundation for globalized operations.
- The 1968 acquisition of Kal Kan entered the pet food space, kicking off the second growth curve.
- The 2008 acquisition of Wrigley filled out the chewing gum category, allowing Mars to outpace Hershey in the confectionery space.
- The completion of the Kellanova acquisition in 2025 broke into the savory snack sector, making Mars an undisputed powerhouse in snacks.
Failures & Pitfalls
- Frank's first venture in 1911 failed due to poor product sales, leading to the company's collapse in 1920 and forcing a liquidation to start over.
- In 1932, Forrest was expelled from the family business due to philosophical disagreements with his father, and the father-son relationship remained fractured for years until they re-merged in 1967.
- In 2016, Mars Petcare was reportedly linked to a batch of pet illnesses; although unconfirmed, the brand temporarily faced public relations pressure.
- In 2020, the COVID-19 pandemic caused global supply chain disruptions, leading to temporary production reductions at Mars chocolate factories, surging cocoa procurement costs, and compressed profit margins.
关键成功要素
- Private ownership and five-generation family succession: Being unlisted allows the company to make M&A and R&D investments on a ten-year horizon without being constrained by quarterly earnings reports.
- Brand M&A driven: From Kal Kan, Royal Canin, and Wrigley to Kellanova, strategic acquisitions are completed roughly every decade to continuously open up new categories.
- Supply chain vertical integration: Self-built or partnered with ADM, Riceland Foods, etc., ensuring full control from raw material cultivation to terminal retail, while promoting regenerative agriculture to cope with ESG pressures.
- Dual-core synergy: Candy + pet food + pet veterinary services form complementary offerings, where rapid growth in the pet business hedges against the maturation of the candy market.
- Global factory layout: Setting up factories and expanding production in China, Mexico, Europe, and elsewhere—such as the $190 million investment in the Querétaro plant in 2026—bringing production closer to markets to lower logistics costs.
Lessons
- If a family business wants to endure for generations, it must handle intergenerational power handovers well; the conflict and reconciliation between Frank and his son serve as a textbook example.
- M&A is not simple addition; category extensions must center around core competencies, and each Mars acquisition has strengthened its bargaining power across the food supply chain.
- Faced with stagnant traditional candy growth, timely entry into high-growth tracks like pet food is essential to maintaining the overall group's momentum.
- Being unlisted does not mean being conservative; on the contrary, it gives management the courage to make bold bets, as proven by the $36 billion Kellanova acquisition.
- Supply chain resilience is the lifeline of food companies; Mars's continuous investment in regenerative agriculture and localized factories mitigates single-region risks.
Core Data
- 年营收：Exceeding $65 billion (2026, including Kellanova consolidation) (Company disclosed figure, as of 2026, independent verification pending)
- 休闲食品年收入：$36 billion (Post-Kellanova merger) (Company disclosed figure, as of 2026, independent verification pending)
- 宠物食品业务收入：Exceeding $30 billion (2026) (Company disclosed figure, as of 2026, independent verification pending)
- 员工数：Approximately 147,388 employees (2026) (Company disclosed figure, as of 2026, independent verification pending)
- 家族财富：$129 billion (Forbes 2026) (Company disclosed figure, as of 2026, independent verification pending)
- Kellanova收购额：$36 billion (2025) (Company disclosed figure, as of 2026, independent verification pending)
- Querétaro工厂投资：$190 million (2026) (Company disclosed figure, as of 2026, independent verification pending)
Competitors / Peers
Mars's main competitors in the candy, snack, and pet food sectors include Nestlé—whose pet food brand Purina has a global market share close to that of Mars; PepsiCo's cereal and snack businesses (such as Lay's); Mondelēz International, which competes aggressively in biscuits and chocolate; and Hershey, which vies with Mars for market share in the domestic U.S. candy market. In the pet food segment, Nestlé Purina and General Mills' Blue Buffalo are also strong competitors. Leveraging its unlisted privatization advantage, Mars is capable of long-term low-price stocking and rapid M&A, whereas listed companies are constrained by profit volatility and struggle to replicate its aggressive expansion pace.
Sources