Mars invests big in EU operations as regulators resume Kellanova acquisition probe

Mars plans to invest €1 billion (US$1.18 billion) into its EU operations by the end of 2026 as it seeks EU approval for its US$36 billion acquisition of Pringles maker Kellanova. EU antitrust regulators are investigating the deal amid concerns that it could give the American multinational too much negotiating power with retailers and lead to price hikes for consumers.

The investigation into Mars resumed yesterday. EU regulators had paused it in July after requesting additional information from the companies involved. The European Commission has set a deadline of December 19, 2025, for its decision. The merger cleared a US antitrust review in June this year.

However, Mars’ CFO Claus Aagaard told the Financial Times that the investment plans have “no direct link” to the EU investigation, instead pointing to the need to rebalance the company’s European and US operations amid slowing demand for packaged foods in the US.

“We take a long-term view — we believe in Europe and we would like to see more growth for the benefit of consumers in the EU economies,” says Aagaard in a company announcement. “Our investments are designed to keep our operations world-class, competitive, and aligned with the EU’s long-term priorities.”

“For Mars, this is about more than just growth. It’s also about building a stronger, more resilient business in Europe that delivers more innovation to consumers, delivers value for thousands of our European suppliers, and creates lasting, positive impacts in the communities where we operate.”

The investments will focus on bolstering Mars’ manufacturing capabilities, innovation pipeline, sustainability performance, and economic resilience in Europe. The company has already invested over €1.5 billion (US$1.7 billion) in EU manufacturing over the last five years.

Mars also announced plans last month to invest US$2 billion into its US manufacturing operations by the end of 2026.

European investment plans

The EU investment plans will boost Mars’ 24 factories across 10 EU countries and support the 25,000 people it employs in its direct operations. The company says that 85% of its products sold in the EU are already produced in the region, which is an export hub to over 100 markets globally.

The candy producer plans to modernize its manufacturing footprint in Europe by upgrading facilities to improve efficiency, product quality, and consumer innovation, from new packaging technologies like the Whiskas recyclable pouch to new gum formats such as Extra/Orbit Refreshers.

For example, it will invest around €250 million (US$295 million) into its chocolate factory in Janaszówek, Poland, between 2023-–2027 to deliver state-of-the-art automation to its operations and increase site capacity by 63%.

The company will also prioritize decarbonizing its value chain to improve sustainability and production resilience. In 2022, its ice cream factory in Steinbourg, France — home to Snickers, Twix, and Bounty ice cream bars — became powered entirely by renewable electricity. This was the first Mars site globally to go fossil-fuel free.

Similarly, its pet nutrition facility in Lithuania has installed a state-of-the-art pouch production line powered solely by renewable electricity. 

Mars is also tackling agricultural emissions with a US$47 million Moo’ving Dairy Forward Plan, which will help to cut methane emissions across EU member states, including the Netherlands.