At TechNexus Venture Collaborative, we're experts in corporate innovation. For a decade, we've accelerated business opportunities between leading corporations and hundreds of startups, creating new products, services, and business models to help drive growth.
We’re also deeply connected to Chicago, which we’ve called home since our founding in 2007. Combining our corporate innovation chops and love for the Windy City, TechNexus is launching a series called Corporate Innovation, Chicago Style. This interview series will offer Q&As with executives at iconic Chicago corporations who discuss their approach to technology, startups, and innovation.
Innovation is at the heart of Mars' continued success with a long history of beloved snacking brands, including M&Ms, Snickers, KIND bars, Orbit gum, and Starbursts to name a few. But in the ever-evolving food industry, resting on past successes is not an option. Mars understands that continuous innovation is essential to stay relevant and meet the changing demands of consumers.
Mars, whose Mars Snacking division is based in Chicago, has a global presence in the snacking industry, with its products enjoyed by millions worldwide. But for Mars, innovation means more than just maintaining market share. It's about anticipating future trends, embracing new technologies, and creating products that delight and inspire.
We spoke with Greg Hocking, an R&D and Innovation Leader at Mars Snacking, about the company's approach to innovation, its focus on external partnerships, and technology's role in shaping the company’s future.
Q: Let's start by talking about corporate innovation at Mars. How does a company with such beloved and iconic brands like M&Ms approach innovation? How do you balance new innovations while still delivering timeless, beloved products?
A: It's a balance. We cherish our iconic brands and maintain the quality and consistency that consumers expect. But we also recognize the need to evolve and innovate. We do this through both internal R&D and external partnerships. We're actively seeking out collaborations with startups and other companies that align with our values and bring new capabilities to the table.
It’s about being able to consistently deliver on consumer expectations of the product and the whole experience around the products. We've got brands like M&Ms that are strongly purpose driven. It takes effort to make sure your brand equity isn't diluted and it continues to be that brand that stands for something in the hearts and minds of consumers, not just in their mouths. It’s about consistently delighting consumers with moments of everyday happiness.
Q: It sounds like Mars is embracing a very open and collaborative approach to innovation?
A: Absolutely. We believe that by working together, in a multi-lateral way, with startups and scaled suppliers, we can achieve more than we ever could alone. It's about creating a win-win situation where all parties benefit from the collaboration that focuses on three core capabilities:
One, Strategic Intimacy: Establishing trusting relationships with partners and a clear understanding of our goals as an organization and their goals as a partner. This allows us to work together as fast as possible.
Two, Risk Appetite: Building this capability to take more intelligent and informed risk. Developing a partnership that works for both sides and is optimized for success. We want to make sure we’re not overburdening partners and smaller companies.
And three, Collaborative Advantage: Solving complex, industry-wide challenges require not only an ecosystem of like-minded partners working together, but also a clear articulation of the opportunity to address.
We have a dedicated team called “OxyGEN” (Growth Enabling Networks) to build these capabilities across the enterprise and to execute this strategy. It is a cross-functional effort with associates in commercial, legal, and R&D with leadership sponsors across all our major verticals to ensure this is embedded across our business.
Q: For internal R&D, tell us more about the Snacking R&D Innovation Hubin Chicago. What are some of the innovations taking place there?
A: The center serves as a hub for cross-functional collaboration, bringing together marketing, R&D, supply chain, and procurement teams to develop innovative solutions for our entire portfolio of brands. It's equipped with state-of-the-art R&D tools, including a new pilot plant for chocolate, enabling rapid prototyping and iterative development. This allows us to experiment with new ideas, test them quickly, and bring innovations to market more efficiently.
Q: How about external innovation? Why is that so important to Mars' innovation strategy?
A: We believe the future lies in collaborative advantage. Partnering with startups allows us to tap into their agility, speed, and fresh perspectives. We recognize we don't have all the answers internally. There are times when others can do it better and faster, and we can decrease our risk and costs by partnering.
Q: What are some initiatives that are in place as a result of this collaborative approach?
A: This year we launched an initiative called Unreasonable Food to build venture cohorts aiming to redefine the future of sustainable foods. It is a three-year commitment where we work with a cohort of 10 to 15 growth-stage companies each year. These companies are selected in partnership with the Unreasonable Group and align with our sustainability goals.
We're serious about these goals. Mars Snacking has ambitious plans to achieve them, and we're investing heavily in this area. In our first year, we brought in 14 companies and demonstrated our commitment to building strategic intimacy by hosting a week-long offsite program with the founders. This allowed us to forge strong relationships, share our strategy, and get to know the founders and their companies on a deeper level.
We're now in the process of defining proof-of-concept projects with these companies and connecting them with our key suppliers. Many of our sustainability goals relate to Scope 3 emissions, so it's crucial to integrate these technologies into our supply chain.
Unreasonable Foods allows us to test our capabilities and put our thesis into action. For example, we can connect a company focused on reducing methane emissions in cows through red seaweed with one of our major dairy suppliers. This is the type of multilateral partnership we aim to foster.
This initiative has also broadened our network, connecting us with climate tech VCs, investors, and disruptive technology startups, so we only expect the program to get better and better each cohort.
Q: How about other efforts where Mars is collaborating with startups for internal innovations?
A: We have several exciting partnerships underway and at the core of our growth strategy is partnering. For example, we've collaborated with companies like Notco to leverage AI for new product development, specifically in recipe and formula optimization. This is still an early-stage technology, but we believe it has the potential to revolutionize how we create new snacks.
Q: This approach to corporate-startup engagement seems very aligned with the philosophy of TechNexus. Can you speak to that?
A: Yes, we very much appreciate the TechNexus model. You understand that corporations need to engage startups because they can move faster and pivot more effectively. Startups bring an external perspective and aren't bound by the same constraints as a corporate organization. We believe this type of collaboration is essential for driving innovation and staying ahead in today's dynamic environment.
Working with startups presents a cultural shift that not only provides an extra perspective, but also the notion that there are times where you should not be doing the innovations by yourself because there is someone out there that can do it faster and better. Greenfielding startups internally can be successful, but oftentimes we find that we are better positioned for success all around if we effectively mentor/support ventures as opposed to building out internally from the ground up.
Q: Any final thoughts on the future of innovation at Mars?
A: We're committed to continuous innovation, both internally and through external partnerships. We believe this is key to not only maintaining our position in the market but also to driving positive change in the snacking industry. We're excited about the future and the opportunities that lie ahead.