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Mars Aims to Reach $1 Billion in Ice Cream Sales Worldwide by 2030
Ambitious Target
Mars, the candy giant, aims to make its mark in the ice cream category, with a target to reach $1 billion in sales worldwide by 2030. Mars tapped Anton Vincent to lead its global ice cream business, adding to his existing role as the president of Mars Wrigley North America, in May. However, Mars faces stiff competition to achieve its ambition in the United States, but the company has been investing in the ice cream business. Mars has spent $50 million upgrading its ice cream factory in Burr Ridge, Illinois, and earmarked an additional $20 million for the facility that remains unspent.
Diversification
As part of a broad-based business, Mars aims to grow its share of the ice cream market. Besides candy and ice cream, Mars also owns a large pet care segment and other food brands. Mars used its $5 billion acquisition of Kind North America, famous for its nut bars, to push into plant-based ice cream substitutes.
Broadening Portfolio
Mars has also been expanding its portfolio, including new flavors such as M&M's Cookies and Cream Ice Cream Cookie Sandwiches and Twix Cookie Dough Ice Cream. Mars is also attempting to increase business in the fall and winter by partnering between the National Football League and its Snickers Ice Cream Bar, besides the summer season, which is still the largest season for ice cream sales. As competition is increasing, Mars is utilizing its big brands and turning them into frozen treats.
Stepping up onto the Ice Cream Market
When Mars purchased Dove in 1986, it entered the ice cream category and bought the brand's manufacturing facility in Burr Ridge, Illinois. These days, the factory manufactures all the ice cream that Mars sells in the US, constituting 55% of its total global demand. Mars ranks as one of the top 10 US ice cream manufacturers by retail sales.
Growing Demand
Mars's global ice cream sales have increased by 42% over the last five years, demonstrating an ambitious growth strategy. The Dove Ice Cream brand alone grew to 12% last year, while the US accounts for more than half the company's ice cream business. Nonetheless, the leading spots in the US ice cream market are outperformed by General Mills, Ben & Jerry's parent Unilever, and privately owned Blue Bell Creameries.
Challenges and Investments
Mars has been investing in the facilities and expanding its portfolio to make its mark in the industry. The company upgraded its ice cream factory with a $50 million investment, which can manufacture hundreds of thousands of Snickers Ice Cream bars per day. Mars is going to spend an additional $20 million on its Burr Ridge, Illinois facility to make more ice cream components like caramel, besides improving capacity for the manufacturing line. Mars's manufacturing process is automated, and workers monitor the machines' activity. The Burr Ridge factory has such designated lines for types of products that Mars manufactures, including sandwiches, bars, and sticks.
Mars's ambitious goal to reach $1 billion in ice cream sales worldwide by 2030 is impressive, but it will face significant competition to achieve it. Mars's investment in its ice cream factory in Illinois and its efforts to diversify its portfolio and expand its flavors is paying off in terms of growth in demand. However, as a new business entering the ice cream market, it is crucial to consider the competition already established in the industry. In addition, the production process is automated, and the company is investing millions to optimize it, indicating a commitment to keeping up with industry trends and staying competitive. As such, a new business should equally invest a substantial amount of money in its production process to remain competitive. In addition, new businesses entering the market may be required to develop unique flavors and strategic partnerships to attract and retain customers. Overall, given Mars's investment in the ice cream industry and the high level of competition, it is a challenging landscape for new businesses to enter, requiring considerable innovation and resources.
