How an Ex-Prisoner Invented M&M's and Fought 30 Years to Save the Mars Company
The Journey of Frank Mars: From Failure to Success
Early Life and Challenges
- Frank Mars was born in 1883 in Newport, Minnesota, and faced significant health challenges as a child, surviving polio which left him disabled for life.
- His early exposure to chocolate-making through his mother sparked his interest in the candy industry. By high school, he began selling bulk candy to local stores.
Struggles in Business
- The introduction of the Hershey bar led to fierce competition, causing Frank's business to fail multiple times; he went bankrupt three times before finding success.
- After moving to Seattle and then Tacoma, he attempted various candy ventures but continued facing bankruptcy due to established competitors like Brown & Haley.
Turning Point: The Milky Way
- Returning to Minnesota with only $400 left, Frank expanded his product line and created the Maro bar and buttercreams from his apartment. This marked a turning point as they began making a living again.
- His son Forrest suggested creating a chocolate melted drink inside a candy bar, leading Frank to experiment with nougat and eventually launch the Milky Way bar, which significantly boosted sales.
Expansion and Family Dynamics
- With Forrest joining the family business after graduating from Yale, they launched new products like Snickers and Three Musketeers; however, Forrest pushed for international expansion while Frank was content with their current success.
- Tensions arose when Forrest demanded one-third of the company or threatened to leave; ultimately, he accepted cash and rights for Milky Way instead of partnership. He moved abroad seeking opportunities in Europe.
Forrest's Innovations Abroad
- In Europe, despite initial failures with products like pineapple chocolate bars, Forrest persevered until he developed the sweeter version of Milky Way called the Mars bar that became highly successful across Europe.
The Rise of Forrest Mars and the Creation of M&M's
Early Partnerships and Innovations
- Forrest Mars partnered with Bruce Murray, son of the Hershey's president, to create a new chocolate product during World War II when cocoa was scarce.
- The candy was named "M&M's," representing Mars and Murray, and became one of the first candies to be sent into space.
Establishing His Own Business
- After establishing Mars in Europe, Forrest took his father's advice to start his own business, leading to the creation of Food Manufacturers.
- He launched Uncle Ben's Rice as the world's first brand name raw commodity but faced personal loss when his father passed away at 50.
Family Dynamics and Company Control
- Following his father's death, Forrest’s stepmother Ethel became president but showed little interest in running the company effectively.
- Ethel left operations to her half-brother William Kruppenbacher, who implemented restrictive measures against Forrest.
Struggles for Leadership
- Under William’s management, company profits declined due to cost-cutting on ingredients while Forrest remained excluded from decision-making.
- Despite being a billionaire with significant sales from Food Manufacturers, he sought control over Mars by convincing family shareholders to sell their shares.
Achieving Leadership and Transforming the Company
- After 30 years of struggle, Forrest became chairman and CEO of Mars; he reformed company culture by eliminating extravagances like executive dining rooms.
- By 1978, under his leadership, sales soared to $7.2 billion as he focused on employee welfare and product quality.
Legacy and Success Insights