Biography of John Mars: tracing the success gene from grandfather to grandson. History of the Mars Company The International Space Station also belongs to no one
Recently, the issue of resource extraction on the Red Planet has become increasingly relevant; interest is shown, first of all, by representatives of organizations that have found financial support in Silicon Valley.
Experts believe that a lot of work is required to determine the rights to resources taken from celestial bodies, otherwise conflicts between firms and countries will inevitably flare up. Barry Kellman, a law professor who studies space governance, says there is a serious debate about companies traveling into space and extracting useful resources from there.
Selling water from asteroids
A US company called Planetary Resources aims to extract water from asteroids within the next 10-15 years. The first robotic test mission as part of the asteroid exploration mission will begin in 2020.
The CEO of this company, Chris Levitsky, made a statement that everything mined in space and brought to Earth is the property of the person who carried it out, in accordance with space laws of the United States and Luxembourg. Moreover, such resources, like any other property, can be sold, stored or donated, and much more.
The company has plans to extract oxygen and hydrogen - the main components of water - from asteroids, and then sell the water for sale. At the same time, Levitsky is going to sell water not on Earth, but in outer space, which is expected to be in demand during various missions. Other spacecraft will be able to use the hydrogen and oxygen available on the ISS. Moving these fuels from our planet to space requires a lot of financial resources, so it is necessary to organize available energy to facilitate the journey of ships. For example, to carry out one launch, it is enough to obtain oxygen and hydrogen from one relatively small asteroid the size of a football field.
Mars Association
However, not all experts are confident in the legality of collecting space water.
Currently, there is a treaty in force from 1967 regulating basic space standards, according to which space is the property of all mankind. States cannot appropriate any celestial bodies to themselves.
If the American corporation SpaceX claims profit from the use of asteroids, can this be considered a national treasure?
However, individual countries are beginning to adopt their own laws giving the right to exercise property rights on a global scale. The American space agency takes a neutral position on this issue.
From the seas to space
Lawyers believe that when resolving space issues, one can be guided not only by national laws and the 1967 treaty, but also by other earthly rules. The Convention on the Law of the Sea provides for the exclusive right of countries to use natural resources located within an area of up to 200 miles from the coastline, and the movement of ships and aircraft of other countries can take place in these waters. A similar rule can be applied in outer space: companies can have exclusive economic rights at their landing site, but will not be able to use the entire astronomical object, for example, Mars.
Professor Kellman believes that even if a universal regime of property rights in outer space is adopted, this will not save us from conflicts between countries and companies.
Mars is a privately held, non-public, family-owned company. Shares of ownership are distributed among the grandchildren of Frank Mars (state estimates - according to Forbes magazine, 2006):
John Mars, Chairman of the Board - estimated net worth US$10.5 billion
Forrest Edwards Mars (Jr.) - estimated net worth US$10.0 billion
Jacqueline (Jackie) Mars - estimated net worth US$10.4 billion
According to Forbes, members of the Mars family rank 27th, 28th and 46th on the planet's list of billionaires. The company's closeness to the press makes it difficult to accurately imagine the degree of involvement of members of the Mars family in the management of the business, but it is known that long-time managers, John and Forrest Mars, formally resigned and handed over control to current CEO Paul Michaels.
The status of a private company, or perhaps its location next to the headquarters of the CIA, led to the fact that Mars has always been a closed company. Its founders never sought personal fame or to show off on the cover of Forbes (however, this does not prevent them from being included in the hundred richest people in the United States according to the famous magazine). This secrecy gave rise to a lot of rumors circulating around the company. Many claimed that the company's CEO, Forrest Mars, goes on a daily walkthrough during which he tastes all Mars products, including pet food! Be that as it may, it’s worth lifting the veil of secrecy over Mars by talking about this company.
Foundation of the company
The history of Mars dates back to the 19th century. In 1883, the future founder of the chocolate giant, Franklin Clarence (Frank) Mars, was born. Frank's parents lived quite poorly, so he had to grow up early and go to work. At the age of 19, he was already selling sweets with all his might. It was from this moment that he entered the industry, which determined his entire life. Frank gradually rose through the ranks, and eventually earned quite decent money. No, he certainly didn’t live richly, but he did have his own home and married a girl named Ethel, who would become his main business partner.
At the age of 28, Frank quits his job and decides to start his own business. Together with his wife, he begins to sell sweets, opening his own confectionery shop right in his home. All trade took place through the Mars family's kitchen window. Sales began to grow quickly and the couple founded a company called Mar-O-Bar. This happened in 1911. Frank's dream of owning his own business, which would allow him to forget about hired work once and for all, began to come true.
In general, at that time the main assortment of the Mars confectionery family were various sweets with a wide variety of fillings. The idea that changed Frank's whole life came to him completely by accident. One day he went with his son to the store. Forrest (that was the name of little Mars) asked his father to buy him chocolate. At that time, chocolate was sold only by weight. It was, to put it mildly, not very convenient. Clients quickly got dirty with it. It was at that moment that Frank thought, why not start selling small pieces of chocolate wrapped in foil? The idea seemed promising to him. After talking with his wife, he came to the conclusion that it was worth a try. We tried it. The Milky Way bar became a hit in a matter of days. By 1925, Milky Way would be a recognized market leader. Sales will begin to grow annually, and the company will open more and more new markets.
In the 20s, Mars will have its own factory in the suburbs of Chicago. The company's staff will begin to grow. All this will result in the emergence of new products, including the legendary Snickers chocolate bar, which is still one of the flagships of the Mars product line.
Meanwhile, Forrest Mars graduates from Yale University. Having received an excellent education, he was about to enter the world of business. There are certain discrepancies regarding what happened. The fact is that historians do not have a common opinion regarding this time. It is known that Forrest went to England, where he started his own business, not related to the Mars company. According to one version, it was his father who invited him to try his hand at creating his own business from scratch. But there is another version, according to which the relationship between father and son seriously deteriorated, and as a result, Forrest left the United States to start his own business. Be that as it may, Forrest started with his father’s money (not counting the fact that Mars Jr.’s company received the exclusive right to produce Milky Way chocolate outside America). And this suggests that father and son maintained some kind of connection, even if the second theory is correct.
In 1932, Forrest Mars purchased premises for a factory in the city of Slow. Having hired several employees, he begins production. It was at this factory that another legendary candy bar would later be born, in no way inferior in popularity to Snickers - Forrest would call it Mars. It is worth noting that the first steps in the production of chocolate bars were not easy for Forrest. He even had to give up the idea of developing his own chocolate at first. Instead, he partnered with Cadbury.
Unlike his father, Forrest was not obsessed only with confectionery. The idea of differentiation was completely foreign to him. It is not surprising that it was with his light hand that animal food such as Whiskas and Pedigree appeared in the company’s assortment. But Forrest’s main discovery will appear a little later - it will be the now popular MM candies. It is a pity that Mars Sr. will no longer see this success of his son, since he will leave this world in 1934. He will die of heart failure.
“Melts in your mouth, not in your hands”
If Forrest's father invented the famous Milky Way chocolate bar, then his son owns the equally famous MM candies. The idea came to Forrest when he came to Spain to solve some problems related to his business. There he saw the candies that became the prototype of MM. The problem with most chocolates of that time was that they quickly melted in your hands. Especially on hot summer days.
Forrest Mars solved this problem with the help of a special protective shell that covered all MM candies. Thus, a sweetness appeared that consumers, tired of chocolate melting in their hands, had long dreamed of. Needless to say, MM overnight becomes the main product of Forrest Mars' company. Moreover, his success was so great that Mars Jr. decided to change the name of the company to MM Ltd.
The next important step for Mars was the purchase of Uncle Ben's. This was another important move in terms of diversification. At that time, Uncle Ben's was one of the leaders in the instant rice market. Having such a strong range of goods, Forrest began to visit America more and more often. And in 1964, he merged his company with his father’s brainchild. The MM/Mars company appeared, which even then amazed with its power and the number of successful brands in its product portfolio. However, there was no talk of going public. Forrest believed that the company should remain a family asset. At least until his death, it was pointless to talk about selling at least some part of the company.
Of course, all the business magazines of the time wrote about Forrest's return to Mars. This was truly a significant event for all of America. It's a pity that Forrest took such a step so late. The thing is that in the early 30s, the father really wanted young Mars to return to the company, but he refused. This was very offensive to Frank, since when he died he was still in some discord with his son. However, Forrest eventually returned and led the company on a new course to new heights.
Revolution in management
Forrest Mars never advertised his wealth. He generally didn't like it when people talked about him too much. He didn't like to show off on the covers of business magazines. He was absorbed in his work, but completely uninterested in the accompanying fame. The Mars device of that time was very similar to the modern Apple. It was difficult to get any information about the company. However, we are aware of some revolutionary moves that Mars has made in relation to its employees.
Firstly, Mars had very strict control over product quality. Of course, so far it has not been delivered as well as the Japanese, but Mars monitored the quality. At the same time, Forrest always got personal when certain problems arose. He openly criticized certain employees. However, this does not mean that he did not value his employees. Not at all! He understood perfectly well that the fate of his company depended on them, and tried to organize the best conditions for them.
The second important point was that Mars abandoned private offices and any partitions separating employees from each other. This was done specifically so that employees could feel like a team. In addition, this move allowed everyone to convey information to another person, including the manager, much faster. Today, organizing work in this way is very popular (one office of the Soup company, which owns LiveJournal, is worth something).
Finally, it is worth noting that the company has its own employee training center. This happened in the middle of the 20th century, and was truly a revolutionary innovation. Overall, this is just a small part of what Forrest Mars has done for the company. Today Mars belongs to the third generation of the family. To be more precise, Frank’s grandchildren, Jacqueline, Forrest Jr. and John, decide her fate. At the same time, they moved away from direct management of the company. Mars CEO is hired manager Paul Michaels.
What's surprising is that Mars is still a private company. Possibly the largest private company in the world. Judge for yourself, the company's income in 2007 amounted to $25 billion. According to data for the same year, the company employed 48 thousand people. Mars owns world-famous brands in three industries: confectionery, animal food, rice (looking ahead, I note that there is another one, which will be discussed below). I think you all know brands such as Milky Way, MM, Twix, Skittles, Snickers, Whiskas, Chappy, Pedigree, Incle Ben’s, Dove Chocolate, Bounty, Royal Canin and many others that are simply pointless to list.
Finally, Mars was the first to introduce beverage dispensers that were capable of accepting paper money. This is another area of the company’s activities that few people know about. However, this does not prevent the slot machines from bringing solid profits to Mars’s treasury.
Mars today
The three main activities of Mars are:
basic food products (rice and Uncle Ben’s sauces, Gurmania soups, etc.)
confectionery products under the brands MM’s, Snickers, Mars, Dove, Milky Way, Skittles, Twix, Bounty, etc.
Pet food (dog and cat) Pedigree, Whiskas, Kitekat, Сhappi, etc.
In addition, the group includes enterprises producing:
vending machines (Mars Electronics International)
drinks (Four Square).
Its own information support service, Information Services International (ISI), is incorporated as a separate company and provides services to all group companies.
The company's total sales in 2006 amounted to more than $20 billion (in 2005 - more than $18 billion).
Mars in Russia
Mars activities in Russia began in 1991 (JSC Masterfoods, since 1995 Mars LLC). At the end of 1993, the first regional representative office was organized (Vladivostok), and in 1994, a network of sales branches was deployed in other regions of the country.
The first production site - the plant in Stupino - came into operation in 1995; in 1996, the head office of Mars LLC was moved from Moscow to Stupino. Subsequently, production facilities were opened in Lukhovitsy near Moscow and Novosibirsk.
In September 2007, the company announced the start of construction of two new factories (a confectionery and one for the production of animal feed) in the Ulyanovsk region. The cost of the first stage of the project is $90 million. In February 2008, it was announced that the amount of investment in these projects would be increased to 4.6 billion rubles.
Revenue in Russia in 2006 amounted to 24.63 billion rubles, net profit - 3.68 billion rubles. The total volume of accumulated investments in Russia since 1993 is about $1 billion.
The large private company Mars is a peculiar phenomenon of the American market. All key positions in the company's administration belong to members of one family, which is particularly mysterious. Mars owners earn billions without any fuss.
Mars is the story of the world's largest private company. The Mars company is one of the most mysterious in the American market. It is one of the few private companies in which key roles are held by family members.
Mars's revenues amount to billions of dollars, it owns more than 10 brands, and you can easily build a separate business around each of them. Mars was and remains a private company from the start. Its owners never sought to create a buzz around their names, and did not express a desire to show off on the cover of Forbes. This, in turn, gave rise to many rumors about the company.
Some claim that the owner and director of the company, Forrest Mars, began every working day by touring the production and personally tasting samples of products, including animal food! Let's lift the veil of mystery over this company a little and get to know its founders better.
How it all began
The history of Mars goes back to the 19th century. The future founder of the “sweet giant,” Franklin (Frank) Clarence Mars, was born in 1883. The family in which Frank grew up was not wealthy, and he had to start working at a fairly early age. At the age of 19, he quickly sold sweets. This was Frank’s “start” in the confectionery industry. Little by little, Mars rose through the ranks and began to earn quite well.
It was difficult to call him rich, but Frank had his own house, a stable income, and by the age of 28 he married his girlfriend Ethel. By the way, Franklin Mars’s wife became his first business partner. But let's not get ahead of ourselves. When Mars turned 28, he decided to quit work, and... Together with his wife, he starts selling sweets. The Marses' first "store" was located right in their house, and trade took place through the kitchen window. Things got going, sales were constantly growing, and the couple decided to start their own company.
They called it Mar-o-Bar in 1911. This is how Frank’s dream of owning his own business began to come true. The product range then consisted mainly of sweets with different fillings. Nothing original. The idea that radically changed Frank's life and gave his business a significant boost came to him by accident. At that time, chocolate was sold exclusively by weight. Naturally, it quickly melted in their hands, people got dirty, it was inconvenient and unpleasant. Frank thought - what if we sold pieces of chocolate wrapped in foil?
This is how the “Milky Way” bar was born. In just a few days it became something of a hit among sweets. By the beginning of 1925, the Milky Way bar broke all sales records in this market segment. 20s. Mars opens its factory near Chicago. The company's staff is constantly growing. New products appear. Among them is the world-famous Snickers bar.
At this time, Frank's son, Forrest, graduates from Yale University. Having received his diploma, he has firm intentions of entering the world of business. Forrest goes to the UK, where he opens his own business. According to one version, the reason for his departure from the States was a disagreement with his father. One thing is certain - Forrest “started” in business with his father’s money. In addition, his company received the right to produce and distribute Milky Way chocolate. So, even if you believe the version of the quarrel between Frank and Forrest, they still maintained certain relationships.
In 1932, in the city of Slow, Forrest bought a small premises for production. By the way, it was at this factory that another equally famous product of the company would subsequently appear – the Mars bar.
Having acquired a modest staff, Forrest began to work. It should be noted that Mars Jr. did not concentrate exclusively on confectionery products, like his father. It was at his instigation that the company’s assortment was replenished with animal food – Whiskas and Pedigree. Forrest's father came up with the idea for the Milky Way bar. Forrest would not be a true Mars if he had not come up with something of his own, no less grandiose. He succeeded to the fullest - M&M candies are the brainchild of Forrest Mars.
Their stunning success was explained very simply - they were covered with a special shell and did not melt in your hands. This feature formed the basis of the advertising slogan that we still hear today: “Melts in your mouth, not in your hands.” The popularity of the candy was so great that Forrest decided to rename his company M&M Ltd. Unfortunately, Frank Mars could no longer share his triumph with his son - in 1934 he died of heart failure.
The most successful deal for M&M Ltd was the purchase of Uncle Ben’s. This company was a leader among instant rice producers. With such a powerful product range, Forrest increasingly looked towards the American market. In 1964, he merged his company with his father's company. This is how the M&M/Mars giant was born. Interestingly, Forrest did not want to hear about going public, and insisted that the business should remain at the disposal of the family.
Features of company management
Forrest Mars did not like to advertise himself or his income. He was not attracted by the covers of popular business magazines. All the time Forrest worked, rolled up his sleeves, and nothing else interested him. The structure of the company at that time was very similar to the modern one. It was almost impossible to get any information about her. But some of the methods that Mars used against its employees are still known.
First of all, this is strict control over product quality. Forrest tried to create the best working conditions for employees, as he perfectly understood that the success of the company depended on them. This, however, did not stop him from subjecting guilty workers to the harshest criticism, sometimes getting personal. Another important point is that Mars has abandoned offices and any partitions separating workers from each other. This was done so that all employees could feel like one team.
Today, such organization of workplaces is also quite popular in some companies. It is also necessary to note the fact that the company was one of the first to acquire its own personnel training center.
Mars Company today
The Mars giant remained a private company, perhaps the largest in the world. It is now managed by Frank's grandchildren - Jacqueline, Forrest Jr. and John. The company makes great efforts to ensure that its products meet modern requirements.
Thus, Mars has abandoned the use of many potentially harmful additives and has significantly changed the composition of almost all of its products. For example, the bar of the same name lost artificial flavors and became much less caloric. The company constantly holds promotions to promote a healthy lifestyle, in particular in England. Mars continues to develop; the company is doing well, despite the crisis. And, apparently, we will never witness the company going public.
The 1967 Outer Space Treaty clearly states that all extraterrestrial real estate “belongs to all mankind” and cannot be claimed by any state as sovereign territory. This form of sovereign ownership was and is fundamental to any claim to property rights: any government must somehow grant that right to you. Currently, land ownership is secured by a system of legal regulation, either a country's constitution or an international treaty that establishes such a system... in this case, that's what the Outer Space Treaty does.
On the other hand, the 1967 Treaty does not make private property illegal in space or on other planets. Like any sound legal system, the 1967 Treaty laid the foundation, and later laws passed in countries that signed the treaty built on it. For example, both Luxembourg and the United States of America have enacted laws that clarify ownership of "space resources", regardless of whether those resources are located on moving objects (e.g. asteroids, comets) or on or below the planetary surface ( like any resources that can be found on Mars... Venus or another planet) or even if these resources are solar flux that photovoltaic panels turn into electricity.
So, currently, you can land on Mars and create your own settlement: you will be given ownership of everything you brought with you, but not the land on which you dumped it all.
But as your construction robots shovel Martian soil onto your temporary home to protect it from radiation, that soil is now a “resource” that you mine and use. Now it is also your property.
Your Sabatier reactors (not nuclear, don't worry) and your plant begin to use the thin Martian atmosphere and release oxygen, methane and water from it. You drill a well to reach the geothermal aquifer deep beneath your settlement and use that well to generate electricity, heat your settlement, engage in scientific experiments (look for “microbial life”!) and carry out careful filtration to provide yourself with a water supply: all these “resources” "now belong to you.
But now the situation has become more complicated. You drilled a well and got the rights to use it...does that give you "water rights" to the giant aquifer you were tapping? In some ways? You have built so many structures in a clearly defined area: even if you cannot own it as your “real estate”, can’t you claim it by setting up everything and setting up production?
You have a launch pad nearby (but not too close) with radar telemetry around it: you have no rights to the open space above the launch pad, you only own the pad, but you can assert those rights: your future neighbor can't build a bridge right above your launch pad, because it will prevent you from using the landscaped spatial resource that belongs to you.
Your rude neighbor might be an idiot and set up a flimsy inflatable dome next to your launch pad, since you can't point to the boundary line of your property and say "don't go beyond it, kid," and since it doesn't physically prevent you from using your property. You have the right to use your previously installed equipment and fry his dome. So this is not about property rights, but about how a sane mind can deal with idiocy.
As you can see, as soon as people begin to use space resources, property laws will be created quite quickly. They have not yet been created... but the basic legal regime is clear: Mars "belongs" to everyone and therefore, in essence, to no one.
John Franklin Mars (born October 15, 1935) is an American businessman, co-owner of the family corporation Mars Incorporated, and from 1999 to 2004 - chairman of the company's board.
Mr. Mars is the third generation heir to the family business. The company, founded by his grandfather Frank Mars in 1911, brings good dividends to his grandson in the 3rd millennium. In Forbes' ranking for the past year, The World's Billionaires-2017, John ranks 26th on the list ($27 billion), as does his sister Jacqueline ($27 billion). Previously, John Mars’ older brother Forrest Jr., who died in July 2016, also appeared in the ranking.
John Mars became the richest resident of Wyoming, his sister is the richest resident of Virginia (Forbes data for 2017).
In the Forbes ranking of the richest people in America “Rischest-400” in 2017, brother and sister are also on the same line, occupying 16th place. According to updated Forbes data as of February 2018, John’s fortune has decreased slightly, but is also impressive – $23.6 billion.
The surname “Mars” is quite worthy of becoming a household name, like, for example, the surname Rockefeller. John Mars not only took over the management of his grandfather's company, but also made his own contribution to its development.
Now Mars Inc. – a global manufacturer of confectionery, pet products, and food products. The company ranks 6th on the list of America’s Largest Private Companies 2017, with sales volumes of $35 billion.
“Mars” is not going to stop there – judging by the logo that presents the corporation on Facebook and translates as “grow further.”
How did the heir to a family corporation manage to grow up hardworking, not spoiled and purposeful? The biography of John Mars will refute the idea that being born with a silver spoon in your mouth makes it easy to go through life.
John Mars's childhood and family
John Mars was born in the USA in Arlington, Virginia on October 15, 1935. To understand in which family little John’s character was formed, let’s look at his pedigree – it was to his relatives that the boy owed who he became.
To this day, the company remains a family-run, “Martian” business, with members of the Mars clan still at the helm.
Start of a family business: founding grandfather
The family business was founded by the grandfather of the hero of today’s article. Frank's parents - Franklin Mars is better known by this name - lived poorly. The difficult financial situation of the family was also complicated by Frank’s illness - he was sick with polio.
Due to illness, he could not attend school like his peers. But it’s not for nothing that the proverb says: “every cloud has a silver lining.” Sitting not at a school desk, but at the kitchen table at home, young Frank, watching his mother, learned the basics of making sweets.
After 15 months of married life, John Mars' father, Forrest Mars Sr., is born.
In 1910, when the boy turned six, his parents divorced. Ethel and her son moved to another city. Frank Mars received custody and an obligation to pay $20 a month. Having started to think about his own business early, Frank did not immediately manage to become financially secure: he could not always pay even “twenty” for his son.
Franklin Mars marries for the second time. Due to the fact that both his wives had the same name - Ethel - sometimes different dates for the founding of the company are given. According to one version, Frank’s first marriage fell apart precisely because of his failed attempt to start a business and provide for his family; according to another, that Mars opened his own business after the divorce, together with his second wife. The official founding date given in Forbes is considered to be 1911, the location is Tacoma, Washington.
The newly minted Mars couple sets up a sweets shop in their newly acquired house and sells confectionery directly through the kitchen window. The business did not generate stable income; short moments of prosperity were followed by sharp failures. In 1920, the Marses moved to Minneapolis, Minnesota, with only $400 in hand. To prepare the sweets that his wife sold, Frank woke up at 3 a.m. every morning. Soon he begins to experiment in the candy business, and one of the innovative innovations becomes fateful.
The beginning of the 20s becomes a turning point in the history of the family company.
Mars founded the Mar-o-Bar company, which began producing Mar-o-Bar candies in 1922, and Milky Way chocolate bars in 1923. And - lo and behold! – within a year, the company’s sales increase 10 times: from $72,800 to $792,900.
Key events in the history of companies are often shrouded in legend. Just as there are several versions of the appearance of the company name, Milka Way has its own story-legend about its origin. It says that the idea of releasing Milky Way - a chocolate bar in a package - came to Frank while walking with his son. Having bought him chocolate by weight (and at that time sweets were sold without packaging and only by weight), Franklin, looking at the child’s hands stained with chocolate, thought something like: “Eureka! Why not sell chocolate in packaging, for example, a foil wrapper?”
In the opinion of the author of the article, the legend is subject to doubt. It is enough to compare the years of the initial release of Milky Way (1923) and the age of Frank’s son - Forrest Mars turned 19 years old at the time of the appearance of the candy bar. How many years ago was Frank walking with his son, and why did he wait so long for the implementation of the idea that came to him during the walk? An implausible, “sweet” story.
The selection of candidates when hiring Frank Mars' factory was tough, but he also paid above average. The boss did not tolerate misconduct and violations: once in the workshop Mars noticed an employee who picked up a fallen chocolate bar from the floor and intended to wrap it in packaging. Mars immediately jumped up to the worker, grabbed him and pushed him away from the workplace.
In 1928, after graduating from Yale University, Mars' son Forrest came to the factory. Although he did not hold an official position, the right of the son of the company founder allowed him to influence production processes. Frank Mars did not like this balance of power. A former assistant to Frank Mars recalls: “He was proud of his son, but he was not going to give him control.” It is no secret that the father-son relationship between the Mars was not simple; in fact, Forrest grew up without a father.
In 1932, Mars sends his son “to hell”: “This company is too small for both of us. Go to some other country and start your own business.” Frank “sweetened” the farewell a little: he gave his son $50 thousand and granted the right to release a “sweet hit” - Milky Way. Forrest leaves for the UK and opens a chocolate factory in the city of Slough (southeast England).
In 1930, mass production of the Snickers bar began. Mars, Inc. becomes one of the largest candy manufacturers in the country.
In 1930, sales amounted to $24.6 million, and almost $2.3 million.
During the years of the Great Depression (the global crisis of the 30s), sales of sweets fell by two-thirds, but Mars and his wife continued to live in grand style. The trappings of a wealthy life were there: the finest cars (a $20,000 Duesenberg and a 16-cylinder Cadillac), the Marlands mansion near a lake in Minocqua, Wisconsin, and a huge (about 1,000-hectare) farm in Tennessee called Milky Way Farms. Way Farms). Over a couple of years, Frank Mars spent about $2 million on real estate, where about 100 people constantly worked. And once he did not have enough money to pay his father’s alimony of 20 dollars...
Frank Mars died at the age of 50, leaving control of the business to his second wife. Mars's widow, while serving as president, was more interested in racing and breeding stallions at the Milky May farm. In fact, her half-brother, vice-president of the company William Kruppenbacher, took over the management of the company. In 1945, when Ethel Mars died, a serious struggle broke out for the right to manage the company.
The struggle for inheritance: the activities of Forrest Mars Sr.
Forrest, meanwhile, is setting up the production of Milka Way in Foggy Albion.
In addition to the production of the Mars TM, Forrest is launching a new sweet brand – M&M’s glazed chocolates. In 1941, their production began for the US Army. Advertising “melts in your mouth, not in your hands” appeared already then.
Sweet pills went only to the front, bypassing regular stores. The Mars company was not the only one that showed up during hostilities - stories and examples of this. In 1945, M&M's became available to the civilian population and came out in tin boxes.
Unlike his father, Forrest was not obsessed with sweets. It is expanding its product line and adding animal food to its range of brands. In 1939, KITEKAT cat food entered the UK market.
Later, the Pedigree (1957) and Whiskas (1958) brands appeared.
To launch another brand - Uncle Ben's rice - Forrest Mars takes out a government loan. The government decided to support the production of this parboiled rice, which was transported better and faster than regular rice. However, everything comes at a price. The American magazine Reader's Digest published a laudatory article about Uncle Ben's in 1944, and interested creditors requested a patent from Mars for the production of this rice. Without revealing their secrets, the Marses have since stayed away from the media and government loans.
Like his father, Forrest was obsessed with quality. Once in a store he came across poorly packaged homemade candy. Forrest rushed to the plant, gathered the top managers and began throwing these candies one after another directly into the glass wall of the boardroom (to the delight of the rest of the employees who were watching the performance).
In 1945, after the death of his stepmother, Forrest decided that there was a good chance to regain control of the family company. At that time, he was the holder of a third of the securities, his half-sister Patricia (Patty) owned another third of the shares, Kruppenbacher had one-sixth of the securities, the rest of the shares were distributed among old employees.
Forrest hoped to form an alliance with his sister: she had a large family, and, having inherited a large lifestyle from her parents, Patricia was only interested in the size of the dividends. Forrest outlined to her the prospects of great income if he led Mars. But Patty found her uncle's voice more convincing: Kruppenbacher insisted that loyalty to the uncle she had known all her life was more important than the money her stepbrother promised her.
With Patty's support, Kruppenbacher remains at the helm of Mars, Inc. His attempt to deny his opponent entry to the plant looked a little childish - having introduced a pass system at the enterprise, he did not issue a pass to Forrest Mars. However, already in 1947 a “truce” was concluded: Forrest Mars received 3 out of 9 seats on the Board of Directors. In late 1959, James R. Fleming, Patty's third husband, replaced Kruppenbacher as president. In 1962, Kruppenbacher sold his shares, and Forrest and Patty each had 41%. After 2 years, Patty sold the securities to her brother.
And so, three decades later, Forrest Mars took back control of Mars. In 1964, he merged his own company with his father's.
At the time of the merger, the annual sales of Forrest's Food Manufacturers, Inc., including its subsidiaries, were many times greater than those of Mars. The combined corporation (about 80% owned by Forrest Mars and his family) was named Mars, Inc. and became one of the largest in the world.
Gathering the executives of his father's firm into a conference room, the new boss, 60-year-old Forrest Mars, said: “I'm a believer. I pray for Milky way, I pray for Snickers" (eng. “I pray for Milky Way. I pray for Snickers”).
So succinctly he outlined his management principle: all employees of the organization should be united by faith in the company’s leadership and the product being released.
One of Forrest's first decisions at his father's enterprise was to demolish the partitions - the walls in the office, in his opinion, interfered with communications between departments. The luxurious dining room for the “chosen few” was also dismantled, the interior of which was decorated with the family coats of arms of privileged employees. Treating subordinates fairly and equally was an integral part of Forrest Mars' management.
In 1966, Fortune estimated sales of Mars, Inc. amounted to more than $350 million, which significantly exceeded the same figure for the famous American candy company Hershey Chocolate Corp. ($226 million).
John Mars' childhood
Forrest Sr. kept a tight rein on his children; in childhood, they sometimes did not even get candy. This is life “in chocolate”. From a young age, John Mars had to learn the lessons of saving: his father did not allow him to squander his savings, investing all his funds in business. There were no fashionable clothes, expensive cars - all that is called “signs of a luxurious life.” Young John has acquired the habit of working to get what he wants.
The father wanted to instill hard work in his children, to make them productive people, not pampered playboys. “Everything in life must be earned,” he believed. It is interesting that modern billionaires, for example, also adhere to a similar approach to raising children.
Education of John Mars
In 1953, John graduated from Hotchkiss School in Connecticut.
He then continued his education at Yale University, graduating in 1957. Subsequently, his children (as well as the children of his older brother) will receive diplomas from this prestigious university.
The Mars brothers, having left the walls of the university, did not forget about their “alma mother”. They provided financial assistance to their native university. In 1999, John and his brother supported the university's Ethics, Politics and Economics (EPE) program, contributing $2 million to its development.
Richard Levin, Yale's president since 1993, expressed his gratitude to Forrest and John Mars: "I am truly grateful for their thoughtful support of one of the University's most innovative and promising interdisciplinary programs."
After graduating from university, John Mars served in the US Army for two years.
John Mars's first independent steps in the family business
After military service, John Mars, with the consent of his father, joined the family business. But even here no one presented him with everything ready on a silver platter.
John Mars' first assignment is to launch animal feed in Australia. It was a task beyond the level of a novice businessman, but nevertheless, John accepted the challenge. Gradually, in the country of kangaroos, he learns all the basics of doing business. Overcoming obstacles, John grew into a successful businessman. He will become the real brain, the intellect of the company. And his brother, Forrest Jr., did not waste time - he managed to open chocolate factories in France and Holland.
Despite this, the father found something to “scold” his offspring for. Old-time workers said that Forrest Sr. He sometimes lectured his sons so loudly in the factory that the screams could be heard several floors away. In 1969, Forrest Mars retired and the baton of managing the family corporation was finally picked up by his adult sons. Forrest Sr. He set a condition for the children: not to sell the company while he was alive.
John Mars's contribution to the development of the company: a business shrouded in mystery
Mars Inc. is one of the most closed to prying eyes. The company's sparse press releases make it difficult to specify in detail the extent of John Mars' involvement in the management of the business. It is known that John was responsible for innovation and launching new products. The secrecy of the company and its successors from the media has become the talk of the town. This applies not only to the working life, but also to the personal life of Mars.
Here are a few facts that allow you to imagine the scale of the secrecy of Mars and Co.:
1 Mars Forrest Sr. gave only one interview - to the Candy Industry and Confectioners Journal. He admitted to reporters: “Money will come to you if you produce a really good product that people need.”
2 Mars Forrest Jr. also gave one interview to the Washington Post in 1992. The tape recording of his voice was destroyed according to the agreement.
3, the company did not provide reporters with information regarding Forrest Mars Sr.: it was not clear whether he was dead or working for the company.
4 Americans find it funny that the company's central office is located in the same place as one of the CIA headquarters - in the city of McLean, Virginia. Coincidence?
5 in the 1980s, when John Mars entered the list of people with the greatest personal wealth, Forbes was unable to get a photo of him. And in 2018, instead of his image, there is this:
Members of the Mars family can compete in their dislike for candid interviews and photo sessions with such people as the founder of Wildberries, and the richest lady in China.
The year of crisis was 1988, when the Hershey company, for the first time in the history of the industry, pushed Mars off the leadership pedestal. During this period, John Mars helped his brother Forrest Jr. regain the palm.
The brothers acquired Ethel M Chocolates (the company created by their father after leaving Mars), which expanded the company's activities and returned it to its leading position in 1991.
In 2008, Mars made a major deal - it merged its business with chewing gum manufacturer Wrigley. Having invested $23 billion, the corporation became the main shareholder of Wrigley. , the founder of Berkshire Hathaway, partially financed the deal. The fact that both Mars and Wrigley have a common feature played a role in the purchase: they are family companies, like, for example, Inc., which is not easy in modern realities.
In January 2017, John Mars paid $7.7 billion to purchase VCA, Inc., a company specializing in pharmaceuticals for animals (pets).
Martian Chronicles: interesting facts about the MARS company
- the number of MARS Incorporated employees is about 100 thousand workers in more than 80 countries around the world
- In 2017, Mars took 4th place in the TOP of employers “Great Place to Work”. The international rating is valuable because the best employer is chosen directly by employees. Not a bad result for MARS, considering that in 2017, 10 million workers from 6,600 companies were surveyed
- At the headquarters of Mars Inc there is a sculpture of a scaffold with an ax, captioned: “The head of every employee lies on the scaffold of responsibility.”
Trademarks included in the corporation increase John Mars' capital - the portfolio contains dozens of famous brands. Here is just a small list of well-known brands: M&M's, Snickers, Dove, Orbit, Spearmint, Milky Way, Mars, Skittles, Twix.
The Orbit brand even ended up in a song by the group Splin - chewing gum was immortalized in the musical hit Orbit Without Sugar
Activities of Mars Inc. illustrates successful diversification (expansion of the line of goods produced). The Mars family has established a sustainable non-commodity business.
It is not at all correct to talk about the company only as a “confectionery empire”, because Mars operates in 5 global business segments:
2 pet products Petcare
3 food
4 Drinks
5 Symbioscience – division studying life science
The company has strong strategic marketing. For example, chocolate bars are produced for a specific target audience, a specific situation.
This allowed us to successfully enter the Russian market in 1991; in 2016, the company celebrated its 25th anniversary of activity in the Russian Federation.
Mars-ians (as the employees call themselves) “go among the people”: they hold meetings with students, telling them about the opportunities for professional development at Mars. Mars Days were held at Moscow State University, Moscow State Technical University named after. Bauman and Financial University.
In 2011, the company published its “Five Operating Principles.” Briefly enough, as for the charter of a global corporation. Often, celebrity advice and company strategies include a much larger number of points: remember “8 principles of leadership from” or “25 rules for success.”
The rules that all members of the Mars family have signed up to are as follows:
- responsibility
- efficiency
- quality
- mutual benefit
- Liberty
Principles are not an empty phrase. Let's take, for example, the 1st point “responsibility”.
With the advent of the 90s, the company set itself the goal of making its products more useful. An agreement was concluded with Procter & Gamble to purchase caprenin (a cocoa butter substitute). But when it turned out that caprenin increased cholesterol, Mars suspended the contract.
The company fights against childhood and adult obesity. In 2008, Mars began producing Generation Max, low-calorie sweets sold in vending machines.
In 2016, Mars announced that it was phasing out the use of dyes in its products. This decision is dictated by the company's concern for customer safety.
Responsible managers of Mars Inc. The situation with accusations of violation of labor laws was also resolved. Large corporations are often subject to similar accusations; Nike has also been criticized for concluding contracts in countries with cheap labor. Mars was accused of using child labor. The crux of the problem was that the company purchased cocoa beans from Indonesian farmers who exploited child labor. The company launched a program aimed at improving the lives of women and children in Indonesia. Mars has officially stated that it partners with suppliers who adhere to labor standards.
If we take point 5 “freedom”, then the freedom of “Mars” lies in the non-publicity of the company: shareholders (since there are none) do not impose decisions on management.
Personal life of John Mars
At the age of 23, John Mars married Adrienne Bevis. The marriage took place in June 1958. The couple had three children - daughter Linda Anne Mars (born 05/23/1960), son Frank Edward Mars (03/13/1963) and Michael John Mars (11/22/1967).
Previously, the billionaire lived in his native Arlington, and currently he and his wife live in Jackson, Wyoming.
In March 2015, Queen Elizabeth II awarded him the title of knight at Windsor Castle.
In 2018, the corporation's heir, Sir John Mars, will turn 83 years old. The big business tycoon is a participant in charitable initiatives.
Changing CEOs in the third millennium
In 2004 Mars - John and Forrest Jr. – officially handed over management responsibilities to Paul Michaels. Michaels has worked at Mars since 1988 and became the first CEO in the history of the company not from the Mars family. The media hoped that the new CEO would make Mars more open to the press, but their hopes were not realized.
Since 2016, Grant Reed, who previously worked in various areas of the brand, has become the company’s CEO.
The company is currently managed by the fourth generation of Mars. Victoria Mars, Forrest Jr.'s daughter, is now the company's president.
But no matter who is at the helm of the company, the strategy of the Mars family corporation for more than a hundred years has been described as follows: to qualitatively satisfy the needs of consumers, while being responsible for the result.
