How do you plan to achieve growth for Mars Balkan in 2024? What specific strategies or initiatives do you intend to implement to meet your growth objectives?

One of our main priorities is to continue consistent growth and investments in our brands through marketing and innovations in the upcoming years. We are satisfied with the results achieved in the past period and we want to continue in the same directions.

In addition to brand investments, a significant part of our efforts is focused on sustainability at both the global and local levels. We recently announced The Mars Net Zero Roadmap, an action plan to achieve net-zero greenhouse gas (GHG) emissions across the entire value chain by 2050. The Mars Roadmap includes a new target, aiming to reduce emissions by 50% by 2030 compared to the 2015 baseline, leading to net-zero emissions by 2050. As part of the action plan, Mars will invest over one billion US dollars over the next three years and continue allocating funds as needed until achieving the net-zero target.

Given the market turbulence, what are the main challenges that Mars Balkans anticipates facing in the coming year, and how do you plan to respond to these challenges?

The current challenges revolve around inflation and the economic crisis, both on a global scale. This is not unique to the FMCG sector and the food industry but applies universally. In 2023, where inflation played a major role, there was a noticeable impact on changing consumer habits. Due to the rising cost of living, a significant portion of them altered their daily purchasing routines. Overall, people remained loyal to their favorite brands, but price now plays one off the crucial roles in decision-making.

Additionally, there has been a long-standing trend of consumers shifting towards healthier and more sustainable options, which we view not as a challenge but as an opportunity. Consumers are increasingly aware of the importance of health and quality nutrition, opting for products while seeking detailed information about what they consume. In response to this trend, which we recognized long ago, we continuously strive to enhance the nutritional content of our products, as well as the sustainable sourcing of our ingredients.

Can you foresee the key business trends for 2024, particularly in the FMCG sector and the food industry? How will Mars Balkans adapt to these trends?

The future of the FMCG industry poses continuous challenges but also growth opportunities. One of the crucial factors shaping our industry in the upcoming period will be supply chain costs and their monitoring, as constant global changes can significantly impact our operations.

Sustainability will remain a focal point, with increasing value placed on environmentally friendly products. We will dedicate ourselves to innovations related to sustainable packaging and an eco-friendly approach in all aspects of our business, including delivery.

Digital transformation and e-commerce will also shape our future, ensuring our competitiveness in online markets.

All these trends present challenges and opportunities for us in the FMCG industry, and Mars Balkans will closely follow them to remain appealing to our consumers.

How does Mars Balkans plan to support sustainable development in 2024? Could you share specific sustainability goals?

As part of our commitment to sustainability, we recently published The Mars Net Zero Roadmap, outlining our plan to achieve Net Zero greenhouse gas (GHG) emissions across our value chain by 2050. This includes a new target to cut emissions by 50% by 2030, reviewed by the Science Based Targets Initiative. We've already reduced GHGs by 8% since 2015 while growing our business by 60%.

In Europe, we've transformed packaging for many pet care products to be biodegradable, recyclable, and reusable. We already use 100% sustainably sourced fish for pet products, and as part of our dedication to the Cocoa and Forest Initiative to preserve forests in Côte d’Ivoire and Ghana, two of our major sourcing origins, we have successfully completed our targets, but our journey doesn’t stop there. We are committed to achieving a deforestation- and conversion-free supply chain for 100% of the cocoa we source by 2025. Additionally, we plan to reduce unsustainable water use by 50% by 2025.

Social responsibility is integral to our business. We invest in research, new technologies, sustainable packaging development, renewable energy sources, and supply chain restructuring to prevent deforestation and natural resource exploitation. Mars will invest over $1 billion in the next three years toward achieving these goals.

Given that Mars continuously enhances the nutritional content of products, how will this impact consumer satisfaction and market competitiveness?

Consumers are increasingly turning to healthier options while seeking accurate information about their food choices. We believe in providing transparent, factual information across our product portfolio to empower consumers to make informed decisions. This involves clear details about nutritional value and ingredients.

Our commitment to improving the nutritional value of products includes reducing trans fats, sugar, salt, saturated fats, and calories. We eliminated partially hydrogenated oils (PHO) and limited industrial trans fatty acids back in 2018. Ambitious goals for the caloric value of snacks and chocolates have been set, and new product variants with less sugar and more protein have been developed. This not only supports a healthy lifestyle but also caters to consumers, including millennials and Generation Z, who seek these types of choices.

Promoting a healthy lifestyle is a big part of our internal activities as well. Through the global Be Well program since 2016, we focus on enhancing the health of our workforce, addressing both physical and mental well-being. It includes the Associate Assistance Program available to Associates and their family members to get support when it comes to mental health issues, as well as engagement with Be Well Ambassadors. Volunteers among our Associates are taking a lead to promote and organize different physical activities like yoga, walking in nature, sports competitions, or joint healthy lunches, different learning sessions, etc., based on existing needs and resources for all colleagues.