Mars Inc Acquires Kind, Expanding into the Healthy Snacking Space
In a strategic move to tap into the growing demand for healthier snacks, candy giant Mars Inc has acquired Kind, the producer of popular nut bars and granola. With this acquisition, Mars aims to diversify its portfolio and cater to health-conscious consumers who prioritize their well-being when choosing snacks. The deal, which values Kind at approximately $5 billion, solidifies the existing partnership between the two companies and paves the way for further expansion.
Expanding Horizons: Mars and Kind Partnership
Mars and Kind initially joined forces in 2017 when Mars purchased a minority stake in Kind, gaining control of Kind International. This initial collaboration propelled Kind's growth beyond the US and Canada, enabling the brand to establish a presence in over 35 countries, including China, Germany, and France. Moreover, Kind expanded its product offerings to encompass eight categories, such as refrigerated nut butter protein bars, dark chocolate bark, and smoothie bowls.
Mars Takes the Lead
With the latest acquisition, Mars becomes the sole owner of Kind North America. Despite this change in ownership, Kind will continue to operate as a separate entity within the Mars group, ensuring its unique identity and autonomy. Daniel Lubetzky, the founder and executive chairman of Kind, will retain a financial stake in the company and play a crucial role in its future development and expansion.
A Shared Vision for Growth and Health
Grant F. Reid, CEO of Mars, expressed his enthusiasm for the partnership, highlighting the shared vision for growth and positive impact on the healthy snacking category. Mars aims to leverage Kind's expertise and reputation to meet the evolving needs of health-conscious consumers. The addition of Kind to the Mars Family of Companies will enable Mars to diversify its product offerings, which currently consist of iconic candies like M&M's, Snickers, and Twix.
Shifting Consumer Preferences
While the sales of traditional sweets experienced a surge at the onset of the pandemic, there is now a noticeable shift in consumer preferences towards snacks that align with their health goals. Consumers are increasingly seeking snacks that not only satisfy their cravings but also contribute positively to their overall well-being. This acquisition positions Mars to cater to this growing base of health-conscious consumers by offering a wider range of options tailored to their needs.
Advancing the Kind Promise
The acquisition also presents Kind with an opportunity to further advance its Kind Promise, a set of nutrition principles that guide the brand's innovation. The Kind Promise encompasses three key pillars:
1. Kinder to our bodies: Kind is committed to adding over two billion servings of nutrient-dense foods to people's diets by 2025. The brand prides itself on avoiding artificial flavors, added sugar, and preservatives, prioritizing nutrition as the primary criteria for every product.
2. Kinder to our planet: Kind aims to source 100% of its almonds from bee-friendly farms by 2025, demonstrating its dedication to sustainability and environmental responsibility.
3. Kinder to our communities: Kind strives to create inclusive and empathetic communities, breaking down barriers and setting an example for others to follow.
By aligning with Mars, Kind can amplify its efforts in building a leading health and wellness platform. Daniel Lubetzky expressed his confidence in the partnership, emphasizing Mars' shared passion for using business as a force for good. Together, Mars and Kind aspire to make a meaningful contribution towards creating a kinder world.
In conclusion, Mars Inc's acquisition of Kind signifies a strategic move to expand into the healthy snacking space. This collaboration capitalizes on the growing demand for nutritious snacks and allows Mars to diversify its product portfolio. With a shared vision for growth and a commitment to making a positive impact, Mars and Kind are poised to shape the future of the snacking industry, one healthy snack at a time.
