Mars

Consumer Goods

Mentions

Podcasts

Episodes

Podcast consensus

Points of consensus

▶Mars Inc. is a private company of immense scale, with annual revenues exceeding $50 billion, making it larger than The Coca-Cola Company and one of the top five largest private companies in America.May 2026

▶The company has pursued an aggressive acquisition strategy to fuel growth and diversification, evidenced by major purchases like Wrigley for $23B, VCA Inc. for $9B, Kind Bar for $5B, and a pending $35.9B deal for Kelanova.

▶Pet care is Mars's largest and most critical business segment, accounting for 59% of revenue and driven by strategic acquisitions that have made it a dominant competitor against rivals like Nestlé.May 2026

▶Mars has a long and storied history of intense competition with Hershey, having surpassed them in the 1970s to become the #1 US candy company through tactics like price wars and superior operational efficiency.

Points of debate

▶The company's market dominance is viewed differently depending on the scope; it is the global leader in a fragmented candy market with an 11% share, but in the U.S. market, it is in a tight race with Hershey, where both hold approximately 24% share.May 2026

▶There is a contrast between the company's fiercely private and secretive culture, which includes not producing financial statements for bankers, and its reliance on public market mechanisms and figures like Warren Buffett to finance its largest acquisitions.

▶The modern company's strategic focus on pet care and health foods (Kind Bar) represents a significant evolution, and potential departure, from the historical core identity built by Forrest Mars around confectionery and ruthless manufacturing efficiency.

▶The company's founding narrative contains internal conflict, contrasting founder Frank Mars's early business failures with the demanding nature and ultimate success of his son, Forrest Mars, whose demand for a one-third stake led to his initial departure from the company.Apr–May 2026

Key themes

▶Aggressive Diversification Beyond Confectionery

While founded as a candy company, Mars has strategically and aggressively expanded into more lucrative sectors, particularly pet care and veterinary services. This segment now constitutes the majority of its revenue (59%) and employee base, driven by major acquisitions like VCA Inc., Royal Canin, and Calcan.

This diversification insulates Mars from volatility in commodity prices and shifting consumer health trends away from sugar, positioning it as a more resilient and growth-oriented CPG giant than its confectionery-focused rivals.

▶The Doctrine of Ruthless Efficiency

The company's culture and operational model are deeply rooted in the principles of Forrest Mars, emphasizing extreme efficiency, data-driven management, and high performance standards. This is exemplified by the use of Return on Total Assets (ROTA) as a core metric, high employee compensation, and a history of winning price wars against competitors like Hershey.

This operational intensity creates a durable competitive advantage, allowing Mars to achieve significantly higher revenue per employee than rivals and maintain lower costs, which in turn fuels its ability to fund large-scale acquisitions.

▶Strategic Use of Private Status

As a privately held family company, Mars operates with a long-term perspective, free from the quarterly pressures of public markets. This allows it to make massive, multi-decade strategic bets, reinvest profits, and maintain a culture of secrecy, reportedly not even sharing full financials with its bankers.

This privacy is a key strategic asset, enabling Mars to execute complex financial maneuvers, like the Berkshire Hathaway-financed Wrigley deal, and pursue acquisitions without public shareholder scrutiny, giving it a significant advantage in long-term planning.

▶Dominance Through Strategic Acquisitions

Mars's history is marked by transformative acquisitions that have either established new market leadership or solidified existing dominance. Key examples include the $23B Wrigley purchase to dominate the gum market, the $9B VCA acquisition to scale its vet services, and the recent $35.9B agreement for Kelanova to expand its snack portfolio.

Mars's growth model appears to be less about organic product innovation and more about a disciplined, well-financed M&A strategy, indicating its core competency lies in identifying, acquiring, and integrating large, established brands to rapidly gain market share.

Source episodes

Timeline

1924-1932

During the Great Depression, the company experiences explosive early growth driven by the Milky Way bar, with sales soaring from approximately $800,000 to $25 million.

1934-1940s

After a dispute with his father, Forrest Mars moves to the UK, establishes a successful candy company, and makes Mars's first entry into the pet food industry by acquiring Chapel Brothers in 1934.

1973-1980s

Under the leadership of Forrest Mars's children, the company surpasses Hershey as the #1 US candy company, initiates price wars, and begins diversifying its US portfolio with acquisitions like Calcan Foods (pet food) and Dove (ice cream).

2002-2008

Mars accelerates its diversification and scale with the acquisition of pet food specialist Royal Canin (2002) and the massive $23 billion takeover of the Wrigley Company (2008), financed with help from Warren Buffett.

2016-2020

The company doubles down on high-growth sectors, acquiring veterinary giant VCA Inc. for $9B (2017), buying out Berkshire Hathaway's stake in Wrigley (2016), and acquiring health-focused Kind Bar for $5B (2020).

Present

Mars surpasses $50 billion in annual revenue and announces its largest acquisition yet, a $35.9 billion definitive agreement to purchase Kelanova, cementing its status as a dominant, diversified CPG powerhouse.

Suggested prompts

How does Mars's private ownership structure enable its aggressive, long-term acquisition strategy compared to its publicly traded competitors like Hershey and Nestlé? &nearr;Analyze the evolution of Mars's business model from a confectionery-focused company to a diversified CPG giant dominated by its pet care segment. What are the primary drivers and risks of this transformation? &nearr;Evaluate the lasting impact of Forrest Mars's management principles, such as the ROTA metric and high-performance culture, on the company's current operational efficiency and competitive advantages. &nearr;Given the planned $35.9 billion acquisition of Kelanova, what are the potential synergies and integration challenges for Mars, and how does this move position the company within the broader snack food market? &nearr;

Key concepts

M&A Strategy 1 ep Pet Care Division 3 ep Financial Performance & Metrics 1 ep Competition with Hershey 1 ep Forrest Mars's Leadership & Culture 1 ep Brand Portfolio 2 ep Private Company Structure 1 ep Berkshire Hathaway Partnership 1 ep

Notable quotes

“Do you know Mars now does more revenue than the Coca-Cola company?”

Ben Gilbert · Mars Inc. - The Chocolate Story (Audio)

“Mars crossed $50 billion in sales last year”

Ben Gilbert · Mars Inc. - The Chocolate Story (Audio)

“in August, Mars announced that they have entered a definitive agreement with Kelanova to purchase the company for $35.9 billion.”

Unknown · Mars Inc. - The Chocolate Story (Audio)

“One of the areas in pet that made me nervous is that we increased our scale in dog food. And in hindsight, that was not the right decision... You're going up huge against huge competitors like Nestlé and Mars.”

Mark Smucker · How Uncrustables Became a Billion Dollar Brand

Report last updated: Jun 10, 2026

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