Mars, Incorporated: Cocoa Sustainability Strategy & Implementation
Case Overview
FSG developed a cocoa sustainability strategy for Mars in Côte d’Ivoire
with the goal to revitalize the cocoa sector in the world’s largest
cocoa producing country.
70% of the world’s cocoa supply originates in West Africa with Côte d’Ivoire as the world’s largest producer. Cocoa in Côte d’Ivoire is grown by more than 700,000 small holders who farm, on average, approximately 3 hectares each. Production volumes and quality have been constantly declining over the last decades due to a multitude of economic, social, and environmental challenges. The underlying problems include: fluctuating weather patterns, low incomes, weak rural infrastructure, lack of improved planting material, aging farms, loss of biodiversity leading to exposure to pests and diseases, deforestation, and declining soil fertility. Without urgent action to address these challenges, the cocoa sector faces the risk of collapse.
As one of the world’s largest chocolate producers, Mars decided to develop a cocoa sustainability strategy to ensure a quality supply of cocoa from Côte d’Ivoire that will benefit both farmers and Mars.
During the first few months of the project, FSG conducted an extensive analysis of the economic, social, and environmental problems in Côte d’Ivoire’s cocoa sector. FSG consultants spent significant time on the ground meeting with farmers, the government, national agricultural institutions, multi- and bi-lateral donors, NGOs, traders, and exporters, and FSG interviewed over 50 cocoa experts globally. The team analyzed cocoa supply conditions and determined the interventions with the highest impact for Mars and other sector actors. From the beginning of the project, the FSG team has worked very closely with the Mars Sustainability team, thus creating a joint effort benefiting from deep technical as well as strategic expertise.
The analysis revealed a high potential for shared value creation — Investing in a comprehensive sustainability program in Côte d’Ivoire will help ensure the long-term success of Mars’ chocolate business and at the same time improve economic, environmental, and social conditions in cocoa-growing communities. The goals of the “Vision for Change” program in Côte d’Ivoire thus address all three levels of sustainability including:
- Economic: Improve Farmer Incomes. Helping farmers to make their farms more productive and to increase the quality of their crops will improve their income and allow them to better cover their family’s needs and reinvest into their farms.
- Environmental: Improve Environmental Management. Good Agricultural Practices (GAP) will increase soil fertility, and more productive farms should reduce expansion of cocoa farming into protected forest areas.
- Social: Invigorate Rural Communities. Empowering local communities will lead to improved living standards in cocoa-growing communities.
Mars understood early on that the challenges within the Ivorian cocoa sector are too complex to be tackled by Mars alone. The “Vision for Change” initiative for Côte d’Ivoire outlines a multi-stakeholder Collective Impact approach, combining pre-competitive public goods investments with supply-chain investments. Mars has proactively engaged with other interested stakeholders and sector investors including the Ivorian government, national institutions, the World Bank, bilateral donors, commercial suppliers, certifiers, and NGOs. FSG has facilitated a partnership between Mars and the Ivorian government, national agricultural institutions, and the World Agroforestry Centre (ICRAF). In March 2010, Mars and the government of Côte d’Ivoire signed an MOU as the basis for future collaboration.
Most recently, FSG has been assisting with the implementation planning of the “Vision for Change” program including developing action plans, orchestrating and facilitating meetings and communication among existing and potential partners, and providing continued strategic advice to Mars as the catalyst of this Collective Impact initiative.
About Mars
Mars, Incorporated is a family-owned company with six global business segments: Chocolate, Petcare, Wrigley Gum and Confections, Food, Drinks and Symbioscience. Across all segments around the world, Mars’ business decisions are guided by its Five Principles: Quality, Responsibility, Mutuality, Efficiency and Freedom. In line with these key principles, Mars has established several significant sustainability initiatives around the world.