Latest / Family Business Stories with Fexingo: Succession, Legacy, and Multi-Generational Companies / How the Mars Family Built a Private Candy Empire
Transcript
- Lucas: Picture this: it's 1911, and Frank C. Mars is hand-rolling buttercream candies in his Tacoma kitchen. He's not exactly an overnight success — his first candy business actually failed. But that kitchen operation eventually became Mars, Incorporated, a company that now generates over forty billion dollars a year in revenue and remains one of the largest privately held corporations in the world. And the family behind it? They've managed to keep control for over a century without ever once tapping the public markets. Luna: That's remarkable, especially when you think about how many family empires eventually go public or get acquired. What's their secret? Lucas: Well, it starts with a culture of extreme secrecy and a fanatical focus on vertical integration. Mars has always insisted on controlling every step of the supply chain — from the cocoa farms to the packaging. And they've historically paid for growth out of their own profits, not by selling equity. That combination has kept the family firmly in the driver's seat for five generations. Luna: But it wasn't always smooth sailing. I've read that Frank's son, Forrest Sr., was pretty estranged from his father for a long time. Lucas: Yeah, that's a huge part of the story. Frank and Forrest had a notoriously difficult relationship. After a bitter falling-out, Forrest actually left the country and built his own candy business in Europe — the company that eventually became Mars UK. He only returned to the U.S. after his father passed away in 1934, and then he took the reins and transformed the company into the global giant we know today. Luna: So the succession wasn't exactly a smooth handover. It sounds like it was more of a hostile takeover within the family. Lucas: In some ways, yes. Forrest Sr. was ruthless and demanding, but he was also a brilliant operator. He introduced the Mars bar to the U.S., launched M&M's during World War Two, and drove the company into new markets with an almost obsessive intensity. By the time he stepped back in the 1970s, Mars had become a global candy powerhouse. Luna: And then the third generation took over — his kids, Forrest Jr., John, and Jacqueline. How did they handle the transition? Lucas: They actually did something unusual: they shared control. Forrest Jr. and John co-ran the company for decades, and they famously kept such a low profile that even their neighbors didn't know they were the Mars family. They maintained that tradition of secrecy — no interviews, no press releases, no annual reports. It's almost like the company's brand was built on the candy, not on the family behind it. Luna: But with three siblings, you'd expect some power struggles. How did they avoid the infighting that's torn apart so many family businesses? Lucas: Well, they didn't entirely avoid it. There were tensions, and at times the siblings had very different visions. But they managed to keep those disagreements private and work through them. One key move was separating ownership from management — the family members who weren't actively running the business still held equity, but they didn't meddle in day-to-day decisions. That's a lesson a lot of family businesses could learn from. Luna: That's interesting — separating ownership from management. It's a structure that's worked for a lot of dynasties, but it also requires a lot of trust and discipline. Lucas: Exactly. And Mars has maintained that discipline even as the family has grown larger. Today, the fourth generation is involved, but the company is still privately held, with the family's collective ownership intact. They've also expanded well beyond candy — into pet care, food, and even healthcare. But the core philosophy remains the same: stay private, stay focused, and keep the family in control. Luna: It's almost a counterpoint to the trend of family firms going public for growth capital. Mars proves you can scale up without selling out — if you're willing to be patient and reinvest relentlessly. Lucas: Right. And that reminds me — if these conversations have moved your work forward in some small way, or just made you think differently about how businesses are built, listener support is what keeps this podcast ad-free and independent. You can help us keep going at buy me a coffee dot com slash fexingo. Every contribution, no matter how small, goes directly toward production and research. And if you can't, that's totally fine — just being here and listening is more than enough. Luna: Yeah, and it's a great way to show some love for the show. We really appreciate it. Lucas: So, back to Mars. One of the most fascinating aspects is how they've handled the question of succession across generations. In many family empires, the founder's death is the moment of crisis. But Mars seemed to have a knack for preparing the next generation — even if it came through conflict and exile, like with Forrest Sr. What do you think made that preparation effective? Luna: I'd say it's the combination of formal training and real-world experience. Forrest Sr. wasn't just handed the company — he had to build his own business first. That gave him the credibility and skills to eventually take over. And later on, the third generation was groomed from a young age to work in the factories. It's like an apprenticeship model. Lucas: And that apprenticeship model extended to their leadership style. Mars is known for its egalitarian offices — everyone, including the CEO, sits in open-plan cubicles, dresses casually, and flies coach. That's a deliberate way to break down hierarchy and encourage direct communication. It's also a way to keep the family humble and focused on the business rather than on personal perks. Luna: There's a certain wisdom in that. But with the family growing larger and more spread out, do you think they can sustain that culture? The current generation — the fifth — is already in their twenties and thirties. How do you keep that entrepreneurial spirit alive when you've inherited a massive, mature company? Lucas: That's the billion-dollar question, literally. Mars has started to address it by bringing in non-family executives from outside — like the current CEO, who isn't a Mars. That's a big shift from the past, when the family always ran the show. They're recognizing that the complexity of a global business sometimes requires external expertise. But they're careful to preserve the family's strategic vision and values. Luna: So it's a hybrid model — professional management, but family ownership and oversight. That might be the way to ensure longevity. Lucas: Absolutely. And it's a pattern we've seen in other family dynasties that have endured. The key is to separate the family's role as shareholders from the management's role as operators. Mars seems to be doing that more deliberately now, and it's a model that could serve them well for another century. Luna: It's also worth noting that Mars has diversified quite a bit. They're not just a candy company anymore — they're a major player in pet care, with brands like Pedigree and Whiskas. That broader portfolio might actually reduce the risk of being too dependent on one product line. Lucas: Right, and that diversification has been key to their resilience. But it also brings new challenges — like managing a complex portfolio of brands across different industries. That's where professional management becomes essential. The family can't be experts in everything, so they need to rely on people who are. Luna: So, looking ahead, what do you think is the biggest threat to Mars' continued family control? Lucas: I'd say it's the classic problem of wealth concentration and family size. With each generation, there are more family members, and their interests can diverge. Some may want to cash out, others may want more control. The Mars family has avoided that so far, but it's an ongoing challenge. They need to keep the family aligned, which often requires formal governance structures — like a family council or a written constitution. Luna: And that's something many family businesses don't set up until it's too late. Lucas: Exactly. Mars has been more proactive. They've established family governance mechanisms that are not publicly known, but likely include regular meetings, clear conflict resolution procedures, and a shared vision for the company. That kind of infrastructure is crucial for a family that wants to stay in control for generations. Luna: It's fascinating to see how a company that makes candy bars can be such a case study in corporate governance. Lucas: Oh, absolutely. And it's a lesson for any family enterprise: the real product isn't just the candy — it's the longevity of the family's ownership and the values they pass down. Mars has managed to keep both intact for over a hundred years. The question is whether they can continue that streak in the decades to come. Luna: And that's a question that goes beyond Mars — it's relevant to every family business listener out there. Lucas: For sure. But for now, I think we've got a good picture of how the Mars family built their private candy empire — and what it takes to keep it going. Thanks for joining us.