Mars, Incorporated is one of the largest privately held companies in the world, best known for its iconic brands like M&M’s, Snickers, and Pedigree pet food. While many people recognize Mars for its candy products, the company owns more than 40 brands in petcare, snacks, and food and nutrition. Recently, Mars committed to investing $2 billion in U.S. manufacturing by the end of 2026. This funding follows $6 billion already spent over the past five years.

The investments are part of a long-term strategy to improve supply chain resilience, support product innovation, and meet growing consumer demand. The expansion focuses on scaling up production facilities, increasing automation, and modernizing existing plants. These efforts are especially important in a post-pandemic environment where many companies are shifting production closer to home to avoid global supply chain disruptions.

Major Investments

Two standout projects are at the center of Mars’s investment strategy, a pet food factory in Ohio and a plant in Utah. Mars opened its largest dry pet food factory in Lewisburg, Ohio. The $450 million plant is operated under the Royal Canin brand, Mars’s biggest pet food division. The new facility will produce enough dry kibble to feed four million pets per year and is expected to create up to 270 new jobs. The plant also holds a Silver LEED certification, signaling a commitment to environmentally sustainable operations.

Mars also completed a $240 million facility in Salt Lake City for its Nature’s Bakery brand, known for healthier snack bars. This plant can produce nearly one billion bars annually and will add more than 230 jobs. Locating the factory closer to distribution centers helps reduce transportation costs and lead times, enhancing logistics efficiency.

Implications for Procurement, Operations, and Logistics

By increasing domestic production, Mars can rely more on locally sourced materials, reducing dependency on overseas suppliers. This change allows the company to build closer relationships with regional vendors, improve quality control, and support U.S. agriculture and ingredient suppliers.

Modernizing factories with advanced technologies like automation and enhanced quality control systems improves production speed and consistency. It also creates safer workplaces and makes it easier for Mars to develop and test new products. Upgrades to existing plants and the construction of new ones improve operational efficiency across the board.

With more facilities based in the U.S., Mars can reduce the time it takes to deliver products to retailers and consumers. Shorter shipping distances also lower transportation costs and carbon emissions. In addition, having production closer to market enables the company to respond quickly to changes in demand, such as sudden increases in popularity of products like Peanut Butter Snickers.

Changing Consumer Behavior

Mars’s supply chain strategy is not just about making more products faster. It is also about staying ahead of changing consumer preferences. Shoppers are increasingly interested in options that are plant-based, lower in sugar, or made with whole grains. By investing in flexible and modern manufacturing facilities, Mars can innovate new products that reflect these evolving tastes.

The company’s investments in brands like Nature’s Bakery and Royal Canin show a shift toward growing segments like healthy snacks and premium pet food. These categories offer long-term growth potential and align with consumer demand for wellness and quality.

Reshoring

Mars’s decision to expand U.S. manufacturing fits within a broader trend known as reshoring. Many global companies are bringing production back to the United States due to rising shipping costs, geopolitical instability, and a desire for more control over their supply chains.

Producing closer to home reduces risk and increases reliability. It also helps companies like Mars meet customer expectations around freshness, sustainability, and product transparency. The “Made in the USA” label can even be a marketing advantage, especially in emotionally resonant categories like food and pet care. New factories bring jobs, boost local economies, and stimulate demand for suppliers across industries, from packaging companies to transportation providers. These ripple effects stand to strengthen the entire U.S. manufacturing ecosystem.

While reshoring offers many benefits, it also comes with potential challenges. For companies like Mars, bringing production back to the U.S. may lead to higher operational costs due to increased wages, regulatory requirements, and energy expenses. Building new facilities is capital-intensive, and success depends on long-term consumer demand. Additionally, there may be shortages of skilled labor in some regions. Reshoring does not eliminate global supply chain risks entirely, as companies may still depend on international suppliers for certain materials or equipment. Focusing heavily on domestic production could also reduce flexibility in serving global markets. These considerations highlight the trade-offs companies must weigh when reshoring manufacturing operations.

Looking to the Future

Mars’s continued investment in U.S. manufacturing highlights a strategic focus on strengthening its supply chain across procurement, operations, and logistics. These efforts are expected to enhance production capabilities, support future innovation, and position the company to respond effectively to evolving consumer demand and market conditions.

In the Classroom

This article can be used to discuss supply chain management (Chapter 8: Supply Chain: Procurement, Operations, and Logistics).

Discussion Questions

  1. What are the key reasons Mars is investing in U.S. manufacturing?
  2. How do Mars’s new facilities in Ohio and Utah support improvements in logistics?
  3. What are the broader implications of reshoring manufacturing for the U.S. economy and supply chain networks?

This article was developed with the support of Kelsey Reddick for and under the direction of O.C. Ferrell, Linda Ferrell, and Geoff Hirt.