CEO & Office of the President, Mars, Incorporated (parent), Wm. Wrigley Jr. Company (Mars Wrigley)
CEO DIALOGUE #42 - Poul Weihrauch, Mars
Mars CEO Poul Weihrauch shares how family ownership enables long-term thinking, purpose-driven leadership, and sustainable ...
About Poul Weihrauch
In a July 2025 interview, Mars CEO Poul Weihrauch discussed how the company's family ownership enables long-term strategic thinking. He stated that "more than 90% of our earnings are invested into the company every year since forever," describing this as both a "massive advantage" and a "big responsibility." Weihrauch added that the company's growth activities must "do good as well as grow the company." He also said, "We act in generations and not in quarters," attributing this approach to the family ownership structure. Weihrauch described the company's 2024 acquisition of pet healthcare company Banfield as an example of leveraging existing knowledge, noting that Mars had a "deep understanding of the pet parent" from its food business before entering pet healthcare. He emphasized the importance of prioritization, saying he reviews his calendar once or twice a year to ensure his time allocation matches his three to five priorities. Weihrauch stated that he loves his job because he works with "amazing people around me that give me positive energy."
Transcript (52 segments)
J
Jean-François0:07
I'm very happy today to be joined by Poul Weihrauch, CEO of Mars. Not the Mars bar, Mars the company, a name we've all heard, but a company that most of us don't know as well as we think. That's in part because Mars is a private company with more than a hundred-year history and one shareholding family known for their discretion. Mars is a very large organization, ranked the fourth largest American private company by Forbes, with over $50 billion revenue in 2024, more than 150,000 Associates. It's about to close the $36 billion acquisition of Kellanova. Poul is going to tell us more, but I want to read a paragraph from Mars' website: 'As a global company with the footprint of a small country, we have the responsibility to leave a lasting impact...' Poul himself is Danish, started at Stimorol, then Nestle, before joining Mars in 2000, and became group CEO in 2022. He serves on several boards. Poul, thank you for joining us.
P
Poul Weihrauch2:45
Thank you for inviting me, Jean-François, it's always a pleasure to come to Lausanne and be at IMD.
J
Jean-François2:50
Now, let's start with understanding Mars' various businesses. When we think of Mars, the first thing is the chocolate bar, but Mars is a lot more. We're looking at three segments: snacks, food and beverages, and pet care. Please tell us more.
P
Poul Weihrauch3:15
Yes. We were born in 1911 as a confectionary company. The second generation moved to the UK in the early '30s with the Mars bar recipe and a little money, started a chocolate company in 1932. He found a pet food facility in Manchester, bought it, and that became our pet food business. During WWII, the family branched into food with a parboiled rice patent. So three businesses: snacking, pet, and food. The pet business is about 60% of revenue, food 4-5%, rest snacking. We operate everywhere, facilities in 70 countries.
J
Jean-François4:47
And with the acquisition of Kellanova, the segments will be rebalanced.
P
Poul Weihrauch4:55
Yes, it's pending approval. The ship was a bit lopsided, so we'll have two largely equal segments: snacking and pet, with food as is.
J
Jean-François5:23
Now, Mars is a rare large company still 100% family-owned, with 4th and 5th generations involved. Tell us about the role of the family and the impact of the ownership structure.
P
Poul Weihrauch5:47
The family are owners and board members, not operationally active. We have six family members on the board. They are guardians of our principles and stability. Family ownership is a big advantage in an unstable world. They want the company to prosper by doing good, so they've put governance structures around sustainability and operations.
J
Jean-François6:49
One thing they do is allow the company to retain a large percentage of profits for reinvestment.
P
Poul Weihrauch7:01
Yes. More than 90% of our earnings are invested every year. That's a massive advantage and responsibility. The family in 2017 started 'Sustainable in a Generation' and developed the Compass, our shareholder objectives with traditional growth and financial targets plus positive societal impact and trusted partner. On societal impact, we target greenhouse gas, thriving people in supply chain, plastic recyclability. On trusted partner, corporate reputation. This year we'll invest $750 million in sustainability. Since 2016, we've grown 60% and lowered absolute greenhouse gas by 16%. We have broken the curve.
J
Jean-François9:12
Right. Because you've been able to grow and reduce the footprint.
P
Poul Weihrauch9:16
Yes, and that's a fallout from the family's decision to have a positive impact. With cocoa up over 500%, many would stop investments, but we take a longer-term view, acting in generations not quarters. This is thanks to family ownership and the next generation's importance.
J
Jean-François10:25
And so the Compass is important, and it's associated with a significant impact on compensation.
P
Poul Weihrauch10:45
Yes. More than 40% of my long-term compensation is on non-financial metrics. I don't think many CEOs of this size can say they take this seriously. It's an archetype of being taken serious.
J
Jean-François11:14
People might think you have it easy as a private company, but we know you have performance targets. Tell us about the joint focus on short and long term.
P
Poul Weihrauch11:47
We have a performance culture with annual targets and quarterly reviews against a peer set. We don't talk to analysts season, but we talk to our owners. Life is a marathon won by sprints. You can't only work on long term or short term; it's a healthy balance.
J
Jean-François12:59
How much time do you spend with the board and family?
P
Poul Weihrauch13:12
More than a typical public company. We have four board weeks per year, each three days, plus regular updates and a biennial offsite. We want our family to have deep insight into the company.
J
Jean-François14:01
What do the three segments have in common and what's different?
P
Poul Weihrauch14:13
They came together somewhat by coincidence. They share great brands and consumer centricity. In pet care, we branched into veterinary healthcare to truly live our purpose 'A Better World for Pets'. What they have in common is deep understanding of the consumer or pet, and a passion for manufacturing and science.
J
Jean-François16:56
Mars has acquired many organizations successfully. What makes you a good acquirer?
P
Poul Weihrauch17:41
More than 60% of our growth is organic. We're patient and respect the culture we acquire. For Royal Canin, we kept it separate and expanded. For Wrigley, we studied its strength at checkout and then merged. We don't compromise on our Five Principles and people development. We spend 3-4x more on development, and people stay 3.8x longer.
J
Jean-François20:41
You expanded into veterinary healthcare, a different business model. How did you think about that?
P
Poul Weihrauch21:41
We had 18,000 veterinarians and 40,000 nurses. We took time to understand them. Curiosity and respect for the business were key. We shared a deep understanding of the pet parent, so it wasn't completely foreign.
J
Jean-François23:04
I hear humility and pride. You said you can do better.
P
Poul Weihrauch23:32
Yes.
J
Jean-François23:35
Tell us about the term 'Associates' and what it means for leaders and for Associates.
P
Poul Weihrauch23:58
We believe Associates should run the business as if it was their own. We give early responsibility. It's not transactional; we want people to have a career. We invest heavily in development. 75% of leaders are grown from within, with external hires for new capabilities.
J
Jean-François26:05
So leaders have expectations and pressure.
P
Poul Weihrauch26:16
Absolutely. We measure leadership performance annually. We have a team model and encourage self-awareness. It's holistic.
J
Jean-François27:23
Tell us about the Five Principles and how you keep them alive.
P
Poul Weihrauch27:57
The principles guide decisions. For example, mutuality means win-win relationships with suppliers. We measure their use. New joiners are trained.
J
Jean-François30:42
You stepped up from SBU to CEO. How do the roles differ?
P
Poul Weihrauch31:02
The buck stops with you. You own board relationships and represent all Associates. Success shifts from presenting well to orchestrating meetings.
J
Jean-François32:47
You've been right often. How do you avoid becoming deaf?
P
Poul Weihrauch33:49
Use your ears proportionately. Create an atmosphere where dissent is comfortable. Always ask what's at stake. Build authentic relationships where people can give feedback.
J
Jean-François36:16
How do you balance personal connection with making tough decisions on team composition?
P
Poul Weihrauch37:02
Put the company first. We have a management development review. It's a responsibility for the organization and the people below.
J
Jean-François38:32
Would I have known 30 years ago that you'd be leading Mars?
P
Poul Weihrauch38:46
My friends say I was always ambitious. I never had a plan, but I always thought I could do a bit better.
J
Jean-François39:29
What remains of the Poul from 30 years ago?
P
Poul Weihrauch39:40
Football and politics conversations, but less loud. More self-awareness about impact.
J
Jean-François40:18
How deliberately have you worked on yourself as a leader?
P
Poul Weihrauch40:31
Since early career, I've had coaches and 360 feedback. I spend several days a year with a coach. It's a continuous investment.
J
Jean-François42:32
How do you stay sane with all the demands?
P
Poul Weihrauch42:52
Family helps. Exercise without distractions. Basic rules on sleep, alcohol, eating. Check in with yourself. You have to let go of some things.
J
Jean-François44:16
You say no often?
P
Poul Weihrauch44:17
Yes. Unless you say no, your priorities disappear. I review my calendar twice a year against my three to five priorities.
J
Jean-François45:13
You love your job because?
P
Poul Weihrauch45:16
Amazing people who give me energy and make me better every day.
J
Jean-François45:29
Thank you for your candor and insights.
P
Poul Weihrauch45:34
Thank you for hosting me.