Connect with us


Insider Q&A: Mars Inc.’s Stephen Badger



Insider Q&A: Mars Inc.’s Stephen Badger

Mars Inc. marches to its own beat.

It makes Milky Way and Snickers bars, but it doesn’t market them to kids in an effort to fight obesity. It makes 50 brands of pet food, but it’s also the largest operator of veterinary hospitals in North America. Americans know it for M&Ms, but it sells gravy in South Africa and mustard in Australia.

As a private, family-owned company — with $35 billion in annual revenue — Mars has some leeway to experiment. It’s working on a chickpea-based snack that could help fight child malnutrition in India. It even developed a DNA test for cats and dogs.

“We’re a 100-year-old business. We intend to be around 100 years from now, and part of what is incumbent upon us is to evolve with the times,” says Mars Chairman Stephen Badger, the great-grandson of Mars’ founder Franklin Mars.

Badger spoke to The Associated Press about candy, nutrition and other parts of Mars’ business. The interview has been edited for length and clarity.

Q. What do you do about the trend toward healthy eating and the way candy is perceived?

A. It’s very, very much at the forefront of our mind. We’re a calories-in business, not a calories-expenditure business. And we take very seriously the notion of ensuring that consumers know what our products contain. We ensure that on the front of the pack we put caloric information, and then on the back of the pack we put nutritional information as well. So even in advance of, or in excess of, what a country might require legally, we’re committed to ensuring that consumers know what’s in our products. Also, with our confectionary products, we are really very clear that they are treats. They’re not a meal, they’re not a meal replacement and they’re not meant to be eaten with meals. Consumer information is at the forefront of what we try to do.

Q. Candy is an impulse buy. How will the growth of online shopping change that?

A. I think it’s not going to change — I think it has changed. Hard retail will always be there. I think it’s up to retailers to figure out how to entice consumers so they actually have an experience that makes them want to come back. That being said, as a manufacturer it’s really incumbent upon us to try to figure out how to generate that impulse online. It’s through a lot of rolling up our sleeves and getting dirty with testing and learning both in our own right as well as in partnership with the likes of Alibaba, Tencent or Amazon.

Q. You have partnered with Kind, which makes nutrition bars, and you’re working on your own high-protein snacks to fight malnutrition. Why is that part of your business?

A. When you look at us as the third-largest food manufacturer in the world, and you look at the scale of the issues facing the world — whether it’s sustainability, income, human rights, child labour — those issues need to be dealt with. Then you fast-forward to the other side of the equation, in terms of consumers and how are we going to feed the 7 billion that we have, not to mention the 12 billion we’re projected to get to. It’s going to have to be in some kind of sustainable fashion and it’s going to have to be affordable. It’s going to have to be accessible. It’s going to have to be all of those at scale. I’m not suggesting there’s one product that is going to fix all of that, but it is a product that in the mix can really fundamentally change the trajectory of childhood nutrition.

Q. Why is Mars in the veterinary business?

A. How do you stay open to trends and understand what’s transpiring? I think it’s by keeping your ear to the ground and looking at opportunities and sometimes making small investments and placing bets and then seeing where those bets go. Our entrance into veterinary care was predicated on an opportunity to invest in Banfield (a chain of more than 975 vet hospitals). What started as a small investment grew over time. It opened our eyes to the reality that if we really want a better world for pets, the best way to do that is to invest in the veterinary practice. I wouldn’t be honest if I said we’ve figured out how to bring to life the totality of that ecosystem, but we can see a real pathway through a number of angles.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


‘Fantastic Beasts’ flies to top of weekend box office




‘Fantastic Beasts’ flies to top of weekend box office

LOS ANGELES — “Fantastic Beasts: The Crimes of Grindelwald” worked its magic at the weekend box office and opened as the top film.

The latest offering from the Harry Potter universe earned $62.2 million for Warner Bros. in the United States and Canada, according to studio estimates Sunday.

That fell short of the opening of the first film in the series, 2016’s “Fantastic Beasts and Where to Find Them,” which debuted with $74 million in a similar November release and went on to earn $234 million in the U.S. and Canada.

Last week’s top film, “Dr. Seuss’ The Grinch,” was second with $38.1 million, bringing its domestic tally to $126 million for Universal after two weekends.

“Bohemian Rhapsody” is still rocking, taking third place with $15.7 million for a total of $127 million.

Continue Reading


DP World chairman says trade tensions will make 2019 challenging




DP World chairman says trade tensions will make 2019 challenging

Global ports operator DP World believes international trade tensions such as those between the United States and China will make 2019 challenging but not unmanageable, its chairman said on Sunday.

Continue Reading


Watch geeks drive booming trade in preowned pieces




Watch geeks drive booming trade in preowned pieces

NEW YORK — Around two dozen traders sit in an open-layout second floor of a building in suburban Philadelphia. Surrounded by computer monitors, loud conversation and ringing phones, the energy on this trading floor is high and the commodity is blingy.

At the headquarters of Govberg, they’re not dealing in diamonds or gold but preowned luxury watches, of which company sells about $200 million worth a year.

Some 100 miles (160 kilometres) northeast, 23-year-old Christian Zeron sits in his parents’ dining room in suburban New Jersey looking at around 30 preowned vintage watches. In a few days, he’ll put them up for sale on his company’s website,, which sells $2 million worth of watches annually.

Govberg, in the watch business for 35 years, and Theo&Harris, founded only three years ago, are part of the thriving preowned luxury watch business. Along with dozens of other companies, they are the core of an industry that has exploded over the past few years, rivaling the new luxury timepiece business in size.

“It’s bigger than people think,” said Reginald Brack, executive director and industry analyst for watches and luxury at NPD Group, which studies $2 trillion in consumer spending across 20 industries.

Brack said it’s difficult to quantify precisely the market for preowned watches because nobody tracks it thoroughly. But some estimates put it at three times the new luxury watch market, itself estimated to be worth up to $10 billion just in the U.S.

“I wouldn’t disagree with that statement,” Brack said. “And it’s only getting bigger.”

Even though watches have been disappearing from people’s wrists with the spread of mobile phones, luxury watches remain a popular status symbol. In fact, sales have slightly crept up in the last two years.

The preowned business allows shoppers to get a good deal on modern watches like Rolex Submariner, while also offering a large selection of vintage pieces like an early 20th Century Cartier Tank.

Danny Govberg, the founder of Govberg’s global watch operation WatchBox, compared the rise of preowned watches to the “quartz revolution” nearly five decades ago.

The introduction of battery-operated quartz movements in wristwatches took a big bite out of the market share from major automatic or mechanical watch brands such as Rolex, Omega, Patek Philippe, Jaeger-LeCoultre, and Audemars Piguet. Those brands, which have since recovered, are now the bread and butter of today’s preowned watch traders.

“Preowned watches are coming out of drawers so fast and furious now that I’ve never seen anything like it,” Govberg said in an interview in the company’s headquarters in Bala Cynwyd, just outside Philadelphia. “It’s a real disruption coming to our industry.”

Luxury brands have taken note. In June, Richemont, the owner of such brands as Cartier and IWC, bought Watchfinder, a British online platform for trading preowned watches.

“The preowned market has taken some business from the new market, there’s no question,” said Steven Kaiser, a veteran watch industry executive and founder of Kaiser Time, a New York-based luxury industry consulting firm.

Govberg entered the preowned watch business in 1983 when he introduced watches to his family’s jewelry store on Jewelers’ Row on Philadelphia’s Sansom Street.

“People weren’t collecting vintage watches back then,” he said, recalling that he would travel to Europe to buy used Rolexes and Patek Philippes from watch shows. “Little shows that you would go to, almost like trading card shows. Like wristwatch swap shows.”

At the turn of the millennium, new platforms such as eBay drove Govberg to adopt his own online strategy. Ultimately, he founded WatchBox, a digital platform and app that includes video reviews and a trading market for valuable timepieces. The company recently launched a second season of “The Classroom,” a YouTube series that aims to educate watch enthusiasts about the intricacies of owning a watch that could be worth hundreds of thousands of dollars.

Zeron, of Theo&Harris, also uses video to offer his thoughts on the industry. He regularly gets hundreds of thousands of views for his four weekly YouTube posts.

“Social media is where it took off,” he said, sitting in his parents’ living room with Anna Griffin who was his first employee and a fellow student at Seton Hall University in New Jersey. “We don’t have a retail store — there was no actual foot traffic. It was all social buzz.”

The young entrepreneur, who founded the company with $10,000 in saved up birthday money when he was a college sophomore, has a larger-than-life persona on social media, with a no-holds-barred approach to roasting iconic brands such as Breitling. Some of his viewers comment that he needs to lay off the caffeine or sugar.

The internet has democratized horological knowledge, much like other niche areas of expertise like aviation.

A watch enthusiast can spend hours on web forums, debating the differences between the various iterations of a $4,500 Tudor Black Bay (“I love the domed crystal but I’d be interested to see it 1mm thicker,” says one member on of the latest “Fifty-Eight” release.)

The explosive growth of preowned watch sales has deeper roots than social media, however. There’s an emotional and intellectual appeal to owning a mechanical device that could have three hundred small pieces inside.

“Nothing that anyone consumes is very interesting anymore,” said Zeron, sporting a 1980s 18-karat gold Rolex Oyster Perpetual Day-Date.

Take the ubiquitous iPhone — easily replaceable, Zeron notes.

“If your vintage Omega breaks, that’s it. It’s over. You will never get another one like it,” he said. “You are going to remember the drinks and the dates and the arguments you had in it. You are going to be sad that you lost it.”

Then, there is the sheer volume and variety on offer, with supply constantly flowing out of people’s drawers.

“If you went into an IWC boutique, they may have 50, 60, 70, 80 watches to choose from,” Govberg said. “But in the preowned space of IWC, you may have 900 watches to choose from.”

But the bottom line is that a preowned luxury watch in great condition is usually a third of the price of a new one.

“For someone that is collecting, for someone that’s trying various pieces, is a natural fit,” said Paul Bragan, a watch collector and senior partner at market research firm Wakefield Research, based in Arlington, Virginia.

Bragan spent hours quizzing Zeron online before taking the plunge with his first vintage watch purchase: a 1978 Rolex Datejust, which the Theo&Harris founder personally delivered during a trip to the Washington, D.C., area. It was the start of a friendship, and many more purchases for Bragan.

“There’s a trade-in value proposition with preowned watches much like the car industry,” said Brack, of NDP.

Watch executives often say their business is like the car industry — only better.

“In the car business, you have about 15 years on a car,” Govberg said. “Watches are meant to last 100 years.”


Follow Amir Bibawy on Twitter @AmirBibawy

Continue Reading


Recent Posts

Like Us On Facebook