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Mars Inc. - The Chocolate Story (Audio)

M&M’s, Snickers, Milky Way, Double Mint, Ben’s Rice, Pedigree, Whiskas, VCA, Banfield… all the brands you know, owned by the company you know nothing about: Mars, Incorporated. And Mars itself is 100% owned and deeply intertwined with the Mars family, who are currently the second wealthiest (and perhaps first most secretive!) family in the United States. Tune in for one of the 20th century’s most incredible entrepreneurial stories across candy and pet care, and one that’s all the more incredible because it’s so little-known! Sponsors: Many thanks to our fantastic Fall ‘24 Season partners: J.P. Morgan Payments https://bit.ly/acquiredJPMPF245yt Crusoe https://bit.ly/acquiredcrusoefall24 Statsig https://bit.ly/acquiredstatsig24 Links: Hershey’s M&M response: Hershey-ets https://shop.hersheys.com/holiday/sweet-treats/032284016385.html Our past episodes on Berkshire Hathaway https://www.acquired.fm/episodes/berkshire-hathaway-part-i LVMH https://www.acquired.fm/episodes/lvmh Novo Nordisk https://www.acquired.fm/episodes/novo-nordisk-ozempic Worldly Partners Multi-Decade Mars Study https://worldlypartners.com/wp-content/uploads/2024/12/Mars-Inc.pdf Episode sources https://docs.google.com/document/d/1saoPN-Scw7bcyf4nbNNY10Ek5GuVwQep6eIq0-bAK6U/edit?usp=sharing Carve Outs: Dandelion Chocolate https://www.dandelionchocolate.com The Dandelion Chocolate Advent Calendar https://www.dandelionchocolate.com/products/2025-advent-calendar-preorder Tesla Model Y + repair service https://ts.la/ben11770 Silo https://www.imdb.com/title/tt14688458/ Home Alone https://www.imdb.com/title/tt0099785/ More Acquired: Get email updates with hints on next episode and follow-ups from recent episodes https://www.acquired.fm/email Join the Slack http://acquired.fm/slack Subscribe to ACQ2 https://pod.link/acquiredlp Check out the latest swag in the ACQ Merch Store! https://www.acquired.fm/store Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.

Ben GilberthostDavid Rosenthalhost
Dec 16, 20243h 53mWatch on YouTube ↗

CHAPTERS

  1. M&M’s varieties as a hook—and why Mars is bigger than you think

    Ben and David open with a rapid-fire tour of M&M’s flavors, then reveal they accidentally uncovered a much bigger story: Mars Inc.’s wartime roots, technology breakthroughs, and family drama. They frame Mars as a massive, still-private powerhouse with revenue exceeding many iconic public companies.

  2. Frank Mars’s early life: polio, kitchen candy-making, and repeated failures

    The story begins with Frank C. Mars’s childhood, shaped by polio and time spent baking with his mother. His first three candy ventures fail, leading to bankruptcy, divorce, and separation from his young son Forrest—setting up the central father–son tension.

  3. How chocolate works—and why Hershey rewired American taste

    To understand Mars, the hosts detour into the technical and economic leap from sugar candy to chocolate. They cover chocolate’s complex process (fermentation, roasting, conching, tempering), the invention of milk chocolate via Nestlé’s condensed milk innovations, and Hershey’s crucial role in defining America’s “chocolate” flavor profile.

  4. World War I, Prohibition, and the candy-bar gold rush (Hershey as ‘AWS’)

    WWI turns chocolate into rations and mass-introduces Americans to Hershey. After the war and during Prohibition, candy bars boom: tens of thousands of regional bars emerge, most buying wholesale chocolate from Hershey—making Hershey the indispensable supplier in a fragmented market.

  5. Mars’s fourth attempt succeeds: Minneapolis chocolates and the Milky Way breakthrough

    Back in Minneapolis, Frank’s fourth company finally gains traction by moving into chocolate products like buttercream truffles. The pivotal moment is Forrest’s reentry and the creation of the Milky Way—an industrially produced, nationally scalable bar that changes Mars’s trajectory overnight.

  6. Forrest Mars: ambition forged in Saskatchewan, systems thinking via Berkeley & Yale

    The episode zooms into Forrest’s origin story—his hard-scrabble upbringing, intense drive, and early business instincts. At Yale, he gains exposure to elite industrial management (DuPont/GM) and internalizes a scale-and-systems worldview that becomes the Mars operating philosophy.

  7. Chicago scale-up: factories, 24/7 production, and the Snickers/3 Musketeers era

    In Chicago, Forrest drives modern factory intensity while Frank enjoys newfound wealth—creating strategic friction. Despite the Great Depression, Mars grows rapidly, launching Snickers (named after a horse) and 3 Musketeers, demonstrating candy’s resilience and the power of low prices + scale.

  8. Father–son break: control fight, Milky Way rights, and Frank’s death

    Forrest demands ownership and control to pursue world domination; Frank refuses. Forrest departs with $50k and international rights to the Milky Way recipe, and the estrangement becomes permanent—Frank dies soon after, and Forrest doesn’t return for the funeral.

  9. Europe apprenticeship: learning chocolate as a line worker and building Mars UK

    Forrest moves to Switzerland and secretly works factory jobs at Tobler and Nestlé to learn real chocolate-making. He then launches the Mars Bar in Slough, England—using Cadbury chocolate—proving he can scale a hit product abroad and laying down the company’s cultural DNA.

  10. Pet food diversification and the ‘Mars Principles’ culture system

    In the UK, Forrest buys Chappie’s canned dog food—an early, counterintuitive diversification that becomes cash-generative. The episode outlines the cultural/operating system that emerges: quality obsession, high performance-linked pay, egalitarian ‘associate’ norms, and ROTA-driven capital discipline.

  11. Return to America and the Trojan horse: M&M’s via Hershey partnership in WWII

    Locked out of Chicago Mars, Forrest returns to the US and partners with Hershey president William Murrie’s son to create M&M’s. The deal cleverly secures scarce wartime chocolate and military demand—turning Hershey, the rival, into the enabler of Forrest’s American comeback.

  12. Postwar struggles to breakout: Bruce Murrie ousted, modern marketing transforms M&M’s

    M&M’s consumer launch is initially tepid, triggering escalating conflict between Forrest and Bruce Murrie. After buying Bruce out, Forrest applies sophisticated market research and TV-era marketing to reposition M&M’s for parents and kids—creating one of the most iconic slogans in advertising history.

  13. Hostile reunion: Forrest regains Mars Inc., ends Hershey dependence, and wins the candy war

    Through inheritance, pressure campaigns, and a distressed buyout, Forrest gains control of Mars Inc. in the early 1960s and rapidly imposes his operating system. He then builds in-house US chocolate production, launches a value/size war, and capitalizes on Hershey’s strategic missteps to become #1 in America.

  14. After Forrest: globalization, mega-acquisitions, and Mars as a pet-care-led conglomerate

    Forrest retires in 1973, briefly returns with Ethel M, and then exits as Mars becomes more private. The next generations globalize the brand portfolio and execute major acquisitions—most notably Wrigley—while the business quietly evolves into a pet-care-dominant empire with candy as only part of the story.

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