Food giant Mars plans to invest $2 billion by the end of 2026 to expand its U.S. manufacturing capabilities and boost product innovation.
The M&M’s, Snickers and Ben's Original maker said the investment will boost production in America, where 94% of Mars’ products sold are manufactured locally. Mars previously spent $6 billion during the past five years to expand its manufacturing footprint.
"This investment is about building a stronger, more resilient business in the U.S.,” Claus Aagaard, Mars’ CFO, said in a statement. "The U.S. is our biggest and most important market, and a key engine of growth for the long term.”
While Virginia-based Mars is best known for its candy and sweets business, it also has a large presence in pet food and snack bars, including Nature's Bakery, which it acquired in 2020. It’s also in the process of buying snacking giant Kellanova for nearly $36 billion, a deal which would add Cheez-It, Pringles, Eggo and Pop-Tarts to its already sprawling portfolio.
Mars’ decision to invest billions in its U.S. production and innovation should help it meet demand and provide the capabilities to add new products as well as innovate existing ones.
Mars noted the $2 billion investment includes a $240 million facility for Nature's Bakery in Utah that is opening Wednesday. The plant will create more than 230 new jobs in the region and expand the brand's capacity, with the ability to produce nearly one billion bars each year.
Nature's Bakery has been a bright spot for Mars. The company said last November that the healthier soft-baked snack bar posted a 30% increase in volume during the prior year, bucking the broader slowdown in the snack bar category.
