Mars to pump $2B into U.S. manufacturing

McLean-based candymaker and pet care giant Mars announced on Tuesday that it plans to infuse $2 billion into its U.S. manufacturing operations by the end of 2026.

The maker of Snickers, M&M’s, and Twix says the investment will support a new, $240 million facility for Nature’s Bakery in Salt Lake City, slated to open on Wednesday. The 339,000-plus-square-foot site will create over 230 jobs and expand the brand’s capacity.

“This investment is about building a stronger, more resilient business in the U.S. — one that can grow with our consumers, deliver for our partners and create lasting economic impact in the communities where we operate,” Mars Chief Financial Officer Claus Aagaard said in a statement.

Mars says 94% of its products sold in the U.S. are produced in the country.

“The U.S. is our biggest and most important market, and a key engine of growth for the long term — not only through our legacy manufacturing footprint but also through the expansion of strategic acquisitions like Nature’s Bakery, which is already scaling quickly,” Aagaard said. “That’s why we’ve committed $6 billion to U.S. manufacturing in the last five years, with another $2 billion planned by the end of next year.”

The $2 billion investment isn’t the only major new initiative to come from Mars. Earlier this month, the company announced the launch of a $250 million investment fund dedicated to fostering business innovation and growth. The innovation fund aims to provide capital to companies developing solutions to address sustainability challenges in the food industry.

Mars says it plans to deploy the fund as direct investments. It will focus on supporting technologies that reduce the emissions associated with agricultural inputs in its products, developing lower emission alternatives to current ingredients and creating a new type of packaging designed for circularity, with a focus on recyclable, compostable or otherwise bio-benign replacements for flexible plastics.

The fund was announced on July 1, the day Mars released its most recent sustainability report. In that report, Mars said that by the end of 2024, it had achieved another 1.9% reduction in absolute greenhouse gas emissions compared with its 2015 baseline while growing the business by over 69% to approximately $55 billion in annual sales during the same period.

Last month, the European Union’s antitrust watchdog organization announced that it has opened an investigation into Mars’ proposed $35.9 billion acquisition of Kellanova, the producer of Cheez-It, Pop-Tarts, Pringles and Eggo. Although the deal could still go through, it will be delayed at least through Oct. 31, possibly until the end of the year. However, the U.S. Federal Trade Commission cleared the deal following an antitrust review.

Mars is Virginia’s largest privately held company and the fourth largest in the United States. In recent years, it has made acquisitions in the pet care and candy sectors in an effort to double its sales by 2033. The company employs more than 70,000 people globally.