When you need the chocolate you find creative ways to make the deal work. See the best of both worlds. Dave Young: Welcome to the Empire Builders podcast, teaching business owners the not-so-secret techniques that took famous businesses from Mom and Pop to major brands. Stephen Semple is a marketing consultant, story collector and storyteller. I'm Stephen's sidekick and business partner Dave Young. Before we get into today's episode, a word from our sponsor, which is, well, it's us, but we're highlighting ads we've written and produced for our clients. So here's one of those. [ASAP Commercial Doors Ad] Stephen Semple: Welcome to part two of the Mars episode. If you haven't listened to the first part, I suggest you go back and give it a listen because those are really the early days of Mars. But the Mars story was so interesting we had to break it into two parts, and there's some really fun and surprising things that are going to happen in Phase 2 of this story. The Mars Bar was this big success. He's now had a couple failures. He needs a success. It's 1934. His father, Franklyn, passes away. Dave Young: Okay. Stephen Semple: At the age of 50, and the future of the company in the U.S. is now in doubt, and there's a small number of shares go to Forrest. But most of the shares go to his stepmother who does not like Forrest. Dave Young: Ouch. Okay. Stephen Semple: Forrest is pissed. And basically he decides that what he needs to do is just go on a vacation and cool off. So he takes a vacation to Spain, and he saw these chocolate candies made by Rowntree that are called Smarties. Dave Young: Um, okay. Stephen Semple: That don't melt, and he had never saw a candy coating on chocolate. So he decides to take Smarties to America. He returns to the U.S., leaves the UK company in the hands of the number two, but he needs a supply of milk chocolate. And where does he need to get that is Hershey's. Dave Young: Okay. Stephen Semple: But he's brand new. Hershey's is not super interested in doing it. So what he does is he knows the president of Hershey's. His son Murray, is never going to make it in the Hershey's business. So he offers Murray. He says, "Hey, you guys, sell me this chocolate. I'll make Murray, I'll give him an executive position plus 20% of the company." Dave Young: Wow. Okay. Stephen Semple: So they go, done. Murray's now set up. Dave Young: Murray's out of our hair. Stephen Semple: Murray's out of our hair. Dave Young: Not our problem anymore. Stephen Semple: What they do is they create this candy based upon Smarties. Dave Young: Wait a minute, wait a minute. Murray? Stephen Semple: Murray. Dave Young: Mars. Stephen Semple: Mars. Dave Young: MM. And the candy-coated chocolate? Stephen Semple: Is M&M's. Dave Young: M&M's, yeah. Oh, wow. So it was the son of Mars and the son of Hershey's. Stephen Semple: Yes. Dave Young: Who knew? Stephen Semple: Right. Dave Young: That's amazing. Stephen Semple: So they need to build a factory and they want to make it stand out. So how they first package M&M's is instead of in a little bag, remember where they used to always come in a tube? Dave Young: Oh, I remember them coming in a tube, but not in my childhood. That was sort of a theater thing later on. Stephen Semple: But that's how they first came was in a cardboard tube. That was how they first came. Dave Young: Oh. You know, I kind of do remember that with like a folded wadded piece of paper at the end to hold it shut, yeah. Okay. Stephen Semple: Yeah, it was first in this... In Canada I remember them with a little plastic thing on the end, but yeah, they're originally in the tube. So it's 1941. War breaks out in the United States. Factories all across, all industries are dedicated to the war effort.
