Mars is expanding its domestic production footprint as packaged food groups face softer consumer spending and shifting preferences toward healthier diets. The candy and snacks maker says the planned $1.4 billion investment in 2027 is aimed at speeding growth and innovation across its food and snack portfolio.
Highlights
- Mars will invest $1.4 billion in 2027 to modernize U.S. manufacturing facilities, strengthen its supply chain, and improve operations.
- The new commitment adds to over $9 billion Mars has invested in U.S. operations since 2017 and follows its $36 billion Kellanova acquisition.
- Recent investments target expansion of Trü Frü production, efficiency upgrades, and modernization of pet food operations amid pressured snacks demand.
Manufacturing upgrade plan for 2027
As reported by Reuters, Virginia-based Mars says the investment will be used to modernize its manufacturing facilities, strengthen its supply chain and improve operations across its U.S. network.The company says it makes about 94% of the products it sells in the U.S. domestically, citing Chief Financial Officer Claus Aagaard. Mars also says the latest commitment builds on more than $9 billion it has invested in its U.S. operations since 2017.
Following its $36 billion acquisition of Kellanova last year, Mars says it has added 15 new factories and plans further spending to modernize its U.S. manufacturing network.
Expansion supports broader U.S. operations
Recent U.S. investments include expanding production of Trü Frü, the premium fruit-based snacks brand Mars acquired in 2023. Other spending has focused on improving efficiency and energy performance at manufacturing sites and modernizing pet food operations with advanced processing.Mars says it employs 80,000 associates across its U.S. manufacturing, office and veterinary operations. The new investment underscores how major food companies are using plant upgrades and supply-chain spending to support output and efficiency as demand for chocolates and snacks comes under pressure.
We have previously noted Richemont’s talks to join a De Beers bid as luxury groups seek tighter control of supply chains.