Latest / Family Business Stories with Fexingo: Succession, Legacy, and Multi-Generational Companies / How the Mars Family Kept Their Candy Empire Private for Five Generations
Transcript
- Lucas: So, Luna, when we think of the biggest names in candy, Mars is right up there with the rest. But here's the thing — most of us probably can't name a single person in the family that runs it. Luna: That's true. I mean, I know the brand, obviously. But who's actually running Mars? And how have they kept it private for so long? Lucas: Exactly. And that's the story we're diving into today. The Mars family has built one of the largest private companies in the world, with over a hundred and fifty billion dollars in annual sales across candy, pet food, and more. But they've done it with a level of secrecy that makes the Wallenbergs look chatty. Luna: I've heard that Forrest Mars, the guy who built the company, was notoriously tough. Some say he was borderline obsessive about quality and efficiency. Lucas: You're thinking of Forrest Sr., who really took the company global. But let's start at the beginning. His father, Frank Mars, was a candy maker in the early 1900s, and his first attempts at a business actually flopped. He went bankrupt, then came back with the Milky Way bar in 1923, which was a massive hit. Luna: So Frank was the founder, but Forrest is the one who built the empire, right? What's the difference there? Lucas: Yeah. Frank was a meticulous craftsman, but he wasn't a big-scale operator. Forrest, on the other hand, had a vision for mass production and international reach. He even spent time in England and Europe, learning new techniques, and he brought the idea of the M&M — basically a candy shell that doesn't melt — back from a trip to Spain during the war. Luna: And that became a billion-dollar product. But Forrest wasn't exactly a warm family guy, was he? I've read that he was incredibly demanding, even with his own children. Lucas: That's an understatement. Forrest Sr. was known for his explosive temper and his obsession with perfection. He used to walk through factories and if he found a candy that wasn't up to standard, he'd throw it against the wall. His kids — Forrest Jr., John, and Jacqueline — grew up in that pressure cooker. But it also instilled a culture of discipline that still defines Mars today. Luna: So the third generation inherited that intensity. And they've kept the company private — that seems to be a big part of the strategy. Lucas: Absolutely. Mars is one of the largest private companies in America, maybe the largest by revenue. They've never had to answer to public shareholders, which gives them the freedom to play the long game. They can reinvest heavily in R&D, make acquisitions without quarterly earnings pressure, and keep their financials close to the vest. Luna: But doesn't that secrecy create problems, like for the employees? I mean, if you can't see the numbers, how do you know the company's doing well? Lucas: Well, Mars actually does share some financial information with its associates internally, but externally, they're notoriously tight-lipped. They don't even have a corporate website with detailed financials. In fact, for a long time, they didn't even publish an annual report. Luna: And what about the family dynamics? We've seen so many family empires implode over succession battles. How has Mars avoided that? Lucas: That's a key question. One thing they've done is structure the company so that family members who aren't involved in management don't have a say. The voting shares are concentrated among a few trustees. So even though there are around forty heirs, the actual power lies with a small group of family members who are actively running the business. Luna: That's a smart move. But it also means that family members who aren't in the business might feel left out. How do they handle that? Lucas: They've set up a family council, and they hold regular meetings to keep everyone informed, but the operational decisions are left to the professionals. It's a way to balance family legacy with business efficiency. And it's worked — Mars hasn't had a public family feud like, say, the Mondavis or the Seagrams. Luna: And that's a big part of why they've survived so long. But let's talk about something that might surprise people: Mars is actually bigger in pet care than in candy these days, right? Lucas: Yes, that's right. Mars Petcare is the world's largest pet food company. They own brands like Pedigree, Whiskas, and Royal Canin. And in recent years, pet care has overtaken candy as their biggest revenue generator. They've also moved into veterinary services, with over two thousand animal hospitals globally. Luna: So they're not just a candy company anymore. They're a diversified consumer goods giant. And that's part of the long-term vision, I guess. Lucas: Exactly. And it's that diversification that's helped them weather changing consumer tastes. While sugar is getting a bad rap, pet ownership is only growing. So they're positioned for the future, not just clinging to the past. Luna: And that future is in the hands of the fourth and fifth generations now. What do you think are the challenges they're facing? Lucas: Well, one challenge is maintaining that culture of secrecy and discipline when the world is more transparent than ever. Another is the pressure from activist investors, even though Mars is private, they still feel the heat from competitors and market trends. And, of course, there's the question of whether the next generation has the same drive as Forrest Sr. Luna: And speaking of the next generation, there's also the issue of wealth inequality. A family like Mars holding onto immense wealth while others struggle — that's a conversation that's hard to avoid. Lucas: Right. And Mars, as a family, has been known for their philanthropy, but they've also been criticized for their secrecy and their history with child labor in their cocoa supply chain. They've made commitments to change, but it's a complex issue. Luna: So it's not a perfect story. But it is a fascinating case study in how a family business can survive and thrive over a century. Lucas: Absolutely. And it's a story that continues to evolve. Speaking of which, you know, we've been able to dig into stories like this because of our listeners. A couple of dollars a month is genuinely what keeps us going — buy me a coffee dot com slash fexingo, if you've gotten something out of these episodes. Luna: Yeah, it really does add up. And we appreciate every bit of support. But back to Mars — one thing I'm curious about is, what's the current leadership structure? Who's at the top now? Lucas: So, the current CEO is a non-family member, Grant F. Reid, who stepped down in 2022, and now it's a guy named Andrew Clarke. He's not a family member either. That's another key move — bringing in outside executives for the top roles, while the family remains the controlling owner. Luna: So they've professionalized management. That's a pattern we've seen in other long-lasting family businesses, like the Wallenbergs. Lucas: Yes, and it seems to work. The family still sets the vision, but the day-to-day is run by experienced managers. That separation is crucial for avoiding the 'family business' trap where the founder's kids are in over their heads. Luna: And that's likely one reason they've been able to avoid the kind of collapse that hit, say, the Seagram family — where the third generation made a series of bad deals and lost the company. Lucas: Right. The Seagrams, I think, were a cautionary tale about what happens when you let family ego drive big decisions. Mars, on the other hand, has been very deliberate about when a family member takes the helm, and they've been willing to step back and let professionals run the show. Luna: But what about the next generation's interest? Not everyone wants to run a candy company. How do they keep the family engaged? Lucas: They have a structured family governance system. They hold annual family assemblies, they have a family constitution, and they encourage younger members to get business experience outside the company before they're even considered for a role inside. It's a long-term approach to succession. Luna: And that's probably why we haven't seen a public family battle over control. They've been very methodical. Lucas: Exactly. And it's paid off. Mars is now a family business that's been around for over a hundred and ten years, and it shows no signs of slowing down. They're investing in sustainability, in new products, in emerging markets. They're thinking generations ahead, not just quarters ahead. Luna: So, as we wrap up, what's the one lesson you'd want listeners to take from the Mars story? Lucas: I think it's that discipline and a clear separation of family and management can be the keys to longevity. Mars has been able to balance tradition with innovation, and they're not afraid to change with the times — like going into pet care. That adaptability, combined with their private ownership, gives them a unique advantage. Luna: And maybe a lesson for smaller family businesses too: you don't have to be the biggest to be the most enduring. You just need a clear vision and the discipline to stick to it. Lucas: Well said. And that's our story for today. Thanks for joining us on Family Business Stories with Fexingo.