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Paris: Mars Group General Manager Paul Warwick said in an interview with Agence France-Presse that climate change imposes on large companies, including those operating in the chocolate industry, a moral duty to reduce their impact, considering that growth and environmental preservation can be inseparable.
The name of the giant “Mars” company in the field of food industries is associated in the minds of many with chocolate bars from world-famous brands such as “Snickers”, or other delicious products, including “M&M”.
However, since its inception, the well-established company (which also owns brands of pasta or chewing gum) has diversified its activities, working especially in the field of products intended for domestic animals.
And “Mars” made a radical change in 2017, with its purchase of the “VCA” network of veterinary clinics for regarding nine billion dollars, before purchasing the European “Anicura” network in the following year.
The group has been present in the sector for decades through well-known animal feed brands (most notably “Pedigree” and “Whiskas”).
The 54-year-old general manager of the group, Paul Warwick, explains from inside a store belonging to the French “Royal Canin” brand, which was bought by “Mars” in 2002 and generates six billion dollars in annual revenues, that the animal care products division now represents 60% of the group’s revenues, which Nearly $50 billion in 2022.
The sector is generating strong profits, with annual growth expected to reach 8% in the United States by 2030, according to a note issued by Morgan Stanley, while Europe is witnessing a similar trend.
Is it possible to discern a desire among the unlisted family group to reduce dependence on the confectionery industry at a time when obesity is a global epidemic?
Paul Warwick “categorically” denies this. “Without chocolate, the world would be boring. We were the first company to adopt a responsible marketing policy towards children,” explains the general manager, who assumed leadership of the group last year following two decades at the company.
The word “responsibility” is frequently used by the Danish general manager who resides in the United States and visits France regularly. He confirms that this concept constitutes one of the main values of “Mars”.
But Warwick acknowledges that the food industry is one of the sectors with the most environmental impact. Great efforts need to be made in this context to reduce the damage of plastic packaging, the supply of palm oil that encourages deforestation, and greenhouse gas emissions.
Mars has set a goal of achieving zero direct and indirect emissions by 2050, and has invested $1.1 billion in sustainable projects since 2020, and plans to double that amount in the next three years. The group is also investing to build on wind power for its veterinary clinics, to ensure a more sustainable supply of cocoa, or to develop new packaging for 12,000 products.
The change will also include new techniques for recipe formulations. “In the food sector, there are thousands of ingredients being researched (…) some of which are not the best in terms of emissions, others pose health problems. It’s a long-term development, and we’re still at the beginning of the road,” Warwick stresses.
“We have a moral obligation to invest in these areas,” Warwick adds. He notes that his company has been working to reduce greenhouse gas emissions since 2018. “Mars wants to be known for making a difference, not just with words,” he says.
But this happens without sacrificing growth. “This is the missing link in the current debate: if your business doesn’t have a solid foundation, you will never invest in sustainable development,” says Warwick.
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