BRUSSELS — Mars, Inc. said it plans to invest €1 billion ($1.18 billion USD) in its European Union operations by the end of 2026, part of an effort to strengthen the company’s manufacturing capabilities, sustainability and innovation in the region.
The investment follows more than €1.5 billion ($1.28 billion USD) that Mars has invested in EU manufacturing over the past five years. During that time, the company said it has modernized facilities, increased production capacity and accelerated efforts to decarbonize its value chain.
“We take a long-term view — we believe in Europe and we would like to see more growth for the benefit of consumers in the EU economies,” said Claus Aagaard, chief financial officer at Mars. “Our investments are designed to keep our operations world-class, competitive and aligned with the European Union’s long-term priorities. For Mars, this is about more than just growth. It’s also about building a stronger, more resilient business in Europe — one that delivers more innovation to consumers, delivers value for thousands of our European suppliers, and creates lasting, positive impacts in the communities where we operate.”
Highlights of the plan include €250 million ($294.06 million USD) earmarked for upgrades to the company’s chocolate facility in Janaszowek, Poland, between 2023 to 2027. The 30-year-old plant, which Mars said is central to its growth ambition in the region, also will receive a 63% bump in site capacity.
Additional plans include upgrading its pet food facilities, like those that produce its WHISKAS range, to allow for new recyclable packaging technologies. Earlier this fall, the company introduced new recyclable pouches for WHISKAS in Europe.
Mars also said it is embedding environmental initiatives across key stages of its value chain. For example, in 2022 the company’s ice cream facility in Steinbourg, France, became powered entirely by renewable electricity, becoming the first Mars site globally to become fossil-fuel free. Beyond manufacturing, Mars said it has a $47 million Moo’ving Dairy Forward Plan in place, which is intended to help reduce methane emissions across multiple EU member states, including The Netherlands.
Mars operates 24 facilities across 10 countries in the European Union. Eighty-five percent of Mars’ products sold in the European Union are produced locally, the company said.
Earlier this year Mars unveiled plans to invest about $2 billion through 2026 to expand its US-based manufacturing operations nationwide. Mars said the plan, announced July 29, builds on the more than $6 billion it has invested in its US manufacturing over the last five years.
Meanwhile, Mars is awaiting European approval of its $35.9 billion deal to acquire Kellanova. The US Federal Trade Commission on June 25 gave Mars the green light to proceed with the transaction, but on the same day the European Commission (EC) said it launched an “in-depth investigation” of the planned acquisition, citing competitive concerns. Initiation of the EC review led Mars to push back its expected completion of the acquisition — which would take publicly held Kellanova private into family-owned Mars — from the first of half 2025 to “towards the end of 2025.”
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