Mars to invest €1bn in Europe as Kellanova deal remains unresolved

American multinational confectionery firm Mars will invest €1 billion in Europe by the end of 2026, the sweetmaker announced on Thursday. The funding will go towards boosting manufacturing and innovation across its 24 factories in 10 countries in the European Union.

This follows an investment of €1.5bn that the company, behind brands including M&M’s, Skittles and Whiskas, has already funnelled into EU manufacturing over the past five years.

Mars’ investments come amid an antitrust probe by EU regulators, who are scrutinising its proposed acquisition of Pringles-maker Kellanova. In a recent update, the European Commission said that the final decision is expected by 19 December.

In a statement, Mars said its newly announced investment aims to modernise its European facilities, which employ 25,000 people and export to over 100 markets, calling the region “central” to its global success. However, 85% of the products it sells in the EU are produced locally within the bloc.

“With the region serving as a critical hub for global operations, this investment reflects Mars’ long-term commitment to EU growth, sustainability leadership, and consumer-driven innovation,” said the company.

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The company’s chocolate factory in Janaszówek, Poland, is set to improve capacity by 63% following a €250 million allocation to “boost efficiency, product quality, and innovation – such as recyclable packaging and upgraded automation”.

The investment will also fund new packaging technologies, including recyclable formats and new gum formats for its Orbit brand.

A further €100mn has been earmarked to modernise and digitise industrial sites in France.

Mars said that the investment will support further partnerships with local suppliers and technology providers in order to strengthen economies across the EU.

The group is stepping up its decarbonisation efforts, funding the transition to renewable electricity at its sites in France and Lithuania. Mars is also funding the implementation of technological innovations at its European farms, backing its sustainable dairy plan, Moo’ving Dairy Forward Plan. This has been set up to tackle agricultural methane emissions at its European sites and support Mars’ goal to slash its emissions globally by 50% by the end of this decade.

“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”, said Claus Aagaard, CFO for Mars.