3 Lessons From These

Chocolate-Dipped Billionaires

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

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

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

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

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.

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.

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

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

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

Warren Buffett's biggest

fear is about to come true