2. The Mars Family
With $20.5 billion each, the three heirs of the Mars family fortune
have certainly hit the sweet spot for wealth
• Jacqueline, John, and Forrest, Jr. remain board members of the privately owned
company
The family is notoriously secretive, but there are three big lessons we
can learn from the company’s history that may be helpful to
entrepreneurs and investors alike
• The value of persistence
• Creative thinking
• Selective partnerships
3. 1. The candy business isn’t always sweet
Mars, Inc. had truly humble beginnings
• Frank Mars, Founder
• Started and shuttered several different candy
companies between 1910 and 1920
• Finally found success in 1923 with the creation of the
Milky Way chocolate Bar
Source: Mars website
4. 1. The candy business isn’t always sweet
Family struggles can sour business
• Forrest Mars, Sr., Frank’s son
• Turned away from the family business by father in 1932
• Received $50,000 in starting capital from Frank Mars
• Created a successful candy and pet food company in
Europe
• Stepmother’s death in 1945 looked like opportunity to merge
family businesses
• Was turned away again by step-mother’s brother
• Ultimately gained control of the company in 1964, after
other stakeholders (including his sister) sold out to him
5. 2. Unlikely pairings can breed success
Common knowledge says that there are two things that
shouldn’t mix: chocolate and pets. Mars has flipped that
notion on its head.
As it turns out, the two most “recession-proof” industries may just be pet care and chocolates.
Source: mymms.com
Source: pedigree.com
6. 2. Unlikely pairings can breed success
There’s no denying that the world has a big appetite for chocolate.
• $16 billion global market
• 1.4% growth over the past 4 years, with consumers shifting
towards organic and dark cocoa products
• 1923 creation of the Milky Way bar lead to development of 4 of
the world’s 10 top chocolate bars
• Snickers is the No. 1 chocolate bar worldwide, while
Hershey’s “Great American Bar” comes in 4th
A strategic acquisition in 2008 aligned Wrigley brands with the Mars
portfolio of products, expanding the company’s non-chocolate
offerings.
7. 2. Unlikely pairings can breed success
Forrest Mars, Sr. spies an opportunity in England
• 1935 - acquired a pet food line after seeing that most pets just got
table scraps
• Company would later be renamed Pedigree
Consumer spending on pets is a huge market in the U.S.
• American’s spent a record $55.7 billion last year
• Food costs account for the largest portion of that spending, placing
Mars in a top position to exploit its eight food brands
• Pet diets often mirror their owners’ own food choices, so the
introduction of organic and other healthier choices among
Mars’ food offerings exposes it to conscientious animal lovers.
8. 3. You can’t always do it alone
Picking the right partner can be a huge task, but the Mars family
has a proven track record of choosing extremely well.
• The Hershey Company played an integral role in the success of Mars, in two
ways:
• The first Milky Way bars were coated with Hershey chocolate
• Forrest Mars, Sr. recruited R. Bruce Murrie to create M&Ms
• Murrie’s father was president at Hershey
• Onset of WWII greatly disturbed cocoa supplies, but with help from
Hershey, the project received uninterrupted supply of chocolate
• M&Ms would grow to become a top candy worldwide, and the first
candy in space
Source: Mars website
9. 3. You can’t always do it alone
In 2008, Mars, Inc. got some help from Warren
Buffett’s Berkshire Hathaway in order to acquire
The Wm. Wrigley Jr. Company for $23 billion
• Credit was drying up as the country headed
towards the Great Recession
• Buffett provided $4.4 billion in loans and
purchased a $2.1 billion minority interest in the
Wrigley subsidiary after the deal closed
• Not only did the deal allow Mars to make a smart acquisition,
but it formed a relationship with one of the top businessmen in
history, which continues to show positive results today.
Source: Insider Monkey
10. Like what you see with Mars?
Though Mars, Inc. is a privately owned business, investors can still
use the lessons from these chocolate magnates to spot other tasty
investment options:
• Look for dedicated founders and management
• They don’t let setbacks stop their drive to succeed
• Invest in companies that position themselves at the top of
markets
• If they take advantage of consumer “addictions” like with
chocolate and pets, all the better
• Watch who businesses choose to partner with
• Smart deals can result in further business down the road
