The Future of Sustainability at Mars & Kellanova

How will the companies’ sustainability programs change when Mars’ acquisition of Kellanova becomes final?

Kate Bertrand Connolly, Freelance Writer

October 9, 2024

4 Min Read
Mix of Mars and Kellanova brand logos
Mars Inc.

At a Glance

  • Both companies are committed to 100% reusable, recyclable, or compostable packaging.
  • Their approaches to environmental issues and packaging sustainability are complementary.
  • Shareable tech includes Mars’ digital packaging simulation platform and Kellanova’s AI models and analytics.

Mars Inc.’s acquisition of Kellanova will surely alter aspects of both organizations, including their packaging sustainability strategies and tactics.

In the acquisition announcement of August 2024, the companies emphasized that sustainability will continue to be a focus after Kellanova becomes part of Mars Snacking. The $35.9-billion deal, subject to Kellanova shareholder and regulatory approvals, is expected to close in 2025.

The two entities complement each other in several key areas, starting with products. The combination of Mars brands like Snickers, M&M’s, Twix, Dove, and Kind with Kellanova’s Pringles, Cheez-It, Pop-Tarts, and Rice Krispie Treats brands will create a global snack food dynamo.

The companies’ supply chains, local operations, routes to market, and sustainability approaches are also complementary.

Both currently have robust sustainability programs that address packaging design and broader environmental issues such as greenhouse gas (GHG) emissions, water conservation, and forest stewardship.

Also, both have proclaimed a commitment to achieving 100% reusable, recyclable, or compostable packaging in the foreseeable future.

Kellanova’s Better Days Promise initiative complements Mars’ Sustainable in a Generation Plan, which has made good progress, notably in decoupling business growth from GHG emissions. Kellanova will become part of the Mars Net Zero commitment and align with the Mars Responsible Marketing code.

Related:Official: Mars to Acquire Kellanova for $35.9B

Ultimately, “both companies are dedicated to minimizing their impact on the environment,” says Josh Prigge, founder of Sustridge Sustainability Consulting and cofounder of North Star Carbon Management, a carbon accounting software company.

Prigge notes that “Mars has been incorporating more sustainable materials into its product lines,” while “Kellanova has concentrated on innovation in biodegradable [compostable] packaging solutions. It tries to minimize the lifecycle impacts of its products, has reduced the usage of plastics, and is exploring alternative, plant-based packaging materials.”

A tale of two strategies.

Mars’ three-pillar sustainability strategy focuses on eliminating unnecessary packaging, redesigning for circularity, and investing in circular packaging for its consumer-facing business. Almost half of Mars’ packaging is currently being changed or eliminated as the company redesigns more than 12,000 packaging components to boost consumer reuse or recycling.

Kellanova has a four-pronged approach to sustainable packaging that includes not only redesigning packaging to be recyclable or compostable but also reducing packaging across its product portfolio, removing undesirable plastic items and packaging materials, and increasing recycling.

Kellanova_Better_Days_promise2.png

“Moving forward, their combined strategy will set ambitious, clear targets for reducing overall packaging waste and improving the recyclability of materials,” Prigge says.

“This will most likely lead to investment in R&D to meet the technical challenges associated with sustainable packaging materials and designs,” he adds. “However, the success of these steps will hinge on their ability to integrate and scale Kellanova’s innovative practices across Mars’ global operations.”

Finding efficiencies and economies of scale — and sharing beneficial technologies and best practices for packaging design and operations — are typical routes to integration after a CPG merger or acquisition.

In this case, Kellanova could benefit from Mars’ digital packaging simulation initiative, through which Mars performs virtual package testing and prototyping in collaboration with software developer Ansys.

Digital packaging simulation provides considerable support for Mars’ goal of using 100% reusable, recyclable, or compostable packaging. It also speeds up packaging design/development and time to market. Mars reports that computer modeling has already reduced its packaging development time by up to 40% and reduced its use of plastics for testing by about 246 tons.

On the other side of the equation, Mars could leverage Kellanova’s artificial intelligence (AI) expertise to drive waste reduction.

In an article posted by Interbrand after the October 2023 division of Kellogg Co. into two entities — Kellanova and WK Kellogg — Charisse Hughes, SVP and chief growth officer at Kellanova, wrote that AI and machine learning have improved her company’s understanding of consumers and shaped predictive purchasing models.

She added that these technologies “are contributing to [Kellanova’s] sustainability efforts through packaging line analytics and mitigating out-of-stock occurrences while minimizing waste.”

Consumers and the food industry in general stand to benefit from a successful harmonization of the companies’ packaging sustainability strategies.
“As a sustainability consultant, I feel transparency and consumer engagement are the pillars of sustainability practices,” Prigge says.

The Kellanova acquisition “could result in an improved assessment of packaging’s environmental impact and the sharing of those findings with consumers,” he adds. “This could, in turn, encourage other companies to adopt similar practices, leading to a better sustainable industry standard.”

About the Author

Kate Bertrand Connolly

Freelance Writer

Kate Bertrand Connolly has been covering innovations, trends, and technologies in packaging, branding, and business since 1981.

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