Will Mars’ Acquisition of Kind Help Them Compete in the Healthy Snack Market?

Mars, one of the world’s largest candy corporations, has acquired healthy snack company Kind, for an undisclosed amount. The maker of a number of iconic brands, such as Snickers and M&M’s, Mars was motivated to acquire Kind to add a healthier snack option to its brand portfolio.

Three years ago, Mars took a minority stake in Kind North America, at which point the company valued Kind at $5 billion. As part of that deal, Mars took control of Kind International, helping them grow outside of the US and Canada.

Grant Reid, CEO of Mars, said in a statement, “when we began this partnership, I said it was one built on mutual admiration and a shared vision for growth. After three years, you can see the impact, as together we have grown the healthy snacking category and brought Kind and the Kind Promise to 35 countries and into new categories. We’re delighted to continue to build on this success and welcome Kind North America into the Mars Family of Companies.”

Kind’s founder and CEO, Daniel Lubetzky, will still retain a stake in the company and will stay involved according to the company’s statement.

Kind is known for its brightly colored logo, clear packaging and simple ingredients. They sell bars with flavors such as Almond Mocha and Dark Chocolate, Cashew Raspberry Chia, Peanut Butter and Dark Chocolate and Honey Roasted Nut and Sea Salt. In 2009, Starbucks made a deal with Kind that helped them expand their product in a crowded snack market. Kind offers more than just snack bars; they now offer Kind Bark, Kind Frozen Bars, Kind Smoothie Bowls and more.

During the pandemic, there were various signs of an increase in consumer interest in healthy foods. “It is challenging in the year of COVID to introduce new items across the world,” said Lubetzky to the New York Times. “Kind is gaining a lot of traction globally, but it’s just taking longer than we would have liked.”

Kind began in 2004 with a $100,000 investment from profits that Lubetzky made from PeaceWorks, a marketing, consulting and distribution firm that he also founded. In 2007, Kind was picked up by Walmart, but was subsequently dropped the following year due to insufficient tracking and monitoring on Kind’s part, according to Forbes. Three years later, Kind got back into Walmart and then into Target as well.

Today, Kind’s sales are at $1.5 billion, according to The New York Times.

“I am so proud of how well the Mars and Kind teams have complemented and strengthened each other over the past three years, Luketzky said in a statement about the acquisition. “We are now well-positioned to further advance our efforts and continue building a foremost health and wellness platform. As we said in 2017, Mars is a company that shares Kind’s passion for business as a force for good, and I am confident that together, we will be able to make our small contribution to make this world a little kinder.”