McLean's Mars Inc. Buying Out Buffet Stake in Wrigley Gum: Report

McLEAN, VA -- Mars, Inc., the secretive candymaking company based in McLean, is buying out Warren Buffet's minority stake in its Wrigley chewing gum business, Reuters reported Thursday.

"I have enjoyed all of Berkshire's experiences with the Mars family and management and wish them the very best," Buffett said in a statement. "Both Mars and Berkshire have profited from our investment and that's the way it should be."

The company announced Thursday that it is combining Mars Chocolate and parts of Wrigley to create Mars Wrigley Confectionery. "The new segment, which brings together the successful century-long heritages of Mars Chocolate and Wrigley, will help us serve our customers better, address consumer trends and accelerate growth opportunities in a vibrant global confectionery category," the company said in its announcement. "We’re excited by the opportunities this combination will unlock for our Associates, customers and consumers."

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Mars Wrigley Confectionery will include some of the world’s best known brands in Chocolate (SNICKERS®, M&M’S®, DOVE®, GALAXY®, MALTESERS®, TWIX®), Gum and Mints (DOUBLEMINT®, EXTRA®, ORBIT®, 5™, ALTOIDS®, LIFESAVERS®), and Fruity Confections (SKITTLES®, STARBURST®).
Martin Radvan, current Global President of Wrigley and a 30-year veteran of Mars, will lead the new Mars Wrigley Confectionery segment. Martin will guide the segment’s 30,000 associates operating in about 70 countries, the company said.

“Mars Wrigley Confectionery brings together two great businesses, strengthening our ability to create win-win relationships with our customers, and improving our opportunities to address dynamic retail and consumer trends together,” Radvan said.

"At Mars, our Five Principles are at the heart of everything we do. Each one of our principles – Quality, Responsibility, Mutuality, Efficiency and Freedom – inspires us to be our best. Since Mars acquired Wrigley in 2008, Berkshire Hathaway has held a minority stake in Wrigley that was subject to purchase by Mars over time. Keeping our Freedom Principle in mind, we accelerated the purchase of Berkshire Hathaway’s entire equity interest in Wrigley."

Grant F. Reid, Office of the President and CEO of Mars commented: “We are grateful for the strong and productive partnership we have with Warren Buffett and Berkshire Hathaway. It is a great relationship that has yielded value on both sides. We’re equally pleased that sole ownership of Wrigley provides us with an opportunity to rethink how we simplify our Chocolate and Wrigley businesses so that we can bring a more holistic approach to this vibrant category.”

The global hub for the new Mars Wrigley Confectionery will be in Chicago. Mars Chocolate and Wrigley will continue to operate separately for the time being. Jean-Christophe Flatin will continue as president, Mars Global Chocolate, and Casey Keller, previously regional president of Wrigley Americas, will become president, Global Wrigley. The combination is proposed to be phased in during 2017.

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