Mars goes far on a sweet mission

Food company wants to invest for next 50 years, or even 100 years, says its chief

It is one of the largest food companies in the world with about $33 billion in sales, but one that has always managed to stay under the radar. Despite the low profile, most of Mars, Inc's brands are household names, be it the Mars or M&M's chocolate, Wrigley's gum or its range of petcare products.

Grant Reid, the president and CEO of Mars, Inc, believes that China is still the sweet spot in the company's long-term plans, despite the slowing economy.

"We want to continue investing for the next 50 years, or even 100 years. And we can do that only as a private company," he says, when asked as to why the company invested $15 million on a global food safety center in Beijing in September.

"About 95 percent of what we do in this center is what we call pre-competitive and we make it available for everyone, including our competitors," says Reid, who has been with Mars for 27 years.

"What we are trying to do is to raise the standards for the whole industry, be it the segment we are in, or for other food segments around the world."

Reid spoke extensively to China Daily about Mar's business strategies in China, his style of leadership, how the 104-year-old company is waking up to a changing world of e-commerce. The following are edited excerpts:

How does the investment in a food safety center help with your long-term plans in China?

We have been in China for a few decades and we have got 13,000 associates. We also have seven state-of-the-art factories. We have deep roots in China.

We are not looking at an investment for one or two years. Instead, we see it as something for 50 or even 100 years.

We consider China more like our second home. As for the current investment, we think it is a good fit for our business and gels well with our future strategies for development in China.

I think that the center will be an ideal fit as there is an increasing awareness about food safety, both at the local and governmental level. The center will also help establish China's global credentials.

What are your investment strategies and game plan in China?

It is important to understand that we don't look at China from a one - or two-year perspective.

We can afford to look at the long-term as we are a privately held company. Being the CEO of Mars is a challenging task. But I also don't have to explain each and every decision or analyze every quarter what we are going to invest for the long term.

It is difficult for me to explain to analysts as to why I have invested $15 million on a pre-competitive food safety center in Beijing. But I can easily convince the Mars family about the need for such a center. A private company always believes in giving back to the community in which it operates.

How do you assess the changing market conditions and operating environment in China?

I think the Chinese economy is still very strong. People are talking about 7 percent GDP growth now.

Believe me, there are lots of big economies around the world who would love to be growing, at 7 percent. Even if the growth drops to 5 percent, China is still a formidable player.

So from a business perspective I think it is all about making sure that we have the right products in the right packaging for the right occasion for the consumers at the right price point.

The Chinese economy, I think more than anything around the world, is changing dramatically and its chances are rooted to the market. We have realized this and now have more offerings available through e-commerce channels.

Mars has kept a low profile for several years. Why is it suddenly proactive about its activities and strategies?

I think technology has changed everything. You know, in the old days, there were advantages of not being on the radar. But today, it is a different story as we are surrounded by social media, Facebook, Snapchat and various other platforms.

If you don't tell your story, someone else will tell the story that they think they should tell on your behalf. One of the things all of them are unanimous about is that we have a great story to tell. So we realized that it is better for us to tell it in our own words.

We want to do something more than just make money. Rather, we want to wake up in the morning and feel that we have made a difference to the society. This will help people to understand what we stand for, what we believe in and what they can expect from us.

Is Mars planning to expand its e-commerce initiatives?

We are going to be where the consumers are. The consumer is our boss. So if the consumer is shopping over the wireless, then we will be there also. If they shop elsewhere, we want to be there.

I think we have to move things a little bit more rapidly, not just here, but across the world. It is important to take advantage of the trends and realize that things are moving at a much faster pace than before. Companies must embrace that, be more agile and make sure that they are moving with the times.

How do you motivate your employees?

Associates are more than just employees. They are actually partners and part of the family. And when you're part of the family, you can't really leave your family.

The second trait that is necessary is passion. I have been with Mars for about 27 years and I love every aspect of it, be it standing here, or talking about what we did to put something back into the community, it is all very exciting. It is important to wake up in the morning and be excited about why you want to do something and why you are there.

The third trait that is required is to be a winner. At the end of the day, you have to win. If you don't have a good business plan, then you can't put something back into the ecosystem. So what I found in Mars is that they always find a way to win. I think it's the entrepreneurial spirit combined with the long-term view, which is quite engaging. We have no hierarchy. You will see that my desk is just like that over there. I have no office.

How do you find time for sports and other leisure activities despite your busy schedule?

I exercise in the morning and late at night. When I am home and with the family, I'm with them, not texting.

Find more interviews at: http://www.chinadaily.com.cn/business/qaceo

wangzhuoqiang@chinadaily.com.cn

(China Daily European Weekly 11/20/2015 page20)