Mars aims to tackle ‘broken’ cocoa model

LONDON - Mars Wrigley Confectionery launched a new sustainability strategy on Wednesday with the aim of combating deforestation, child labor and poverty, in what it called the 'broken” cocoa supply chain.

U.S.-based Mars, the maker of M&Ms and Snickers, said it had revamped its cocoa strategy in an effort to tackle problems that the company and wider industry had so far failed to address.

'The cocoa supply chain as it works today is broken,” John Ament, global vice president of cocoa at the privately owned company, told Reuters.

'It's time to recognize this and to build a new model and a new approach that focuses on putting the smallholder at the center.”

The cocoa industry's current approach to sustainability has drawn criticism in recent months, as years of scattered actions have done little to improve the lives of farmers and prevent environmental degradation.

Under the new sustainability scheme - which will cost the company $1 billion over 10 years - all the cocoa it buys will be responsibly sourced by 2025, Mars said.

This means the cocoa will fit the company's internal criteria - including full traceability to ensure it doesn't contribute to deforestation - and carry a stamp of approval from a third-party verifier.

Mars previously had committed to buying 100 percent certified cocoa by 2020. However, the company is now seeking to move 'beyond certification,” which has not delivered the impact the company had hoped for, according to Ament.