In May 2017, Mars, Incorporated, the world’s largest chocolate company, announced the launch of a new stand-alone subsidiary called The Cocoa Exchange. While Mars focuses on mass producing products like Snickers and M&M’S that are available in all distribution channels, The Cocoa Exchange aims to sell exclusive and premium chocolate products directly to consumers through a commission-based sales force under three product lines: Pod & Bean, Dove Signature, and Pure Dark. The Cocoa Exchange’s mission is to create incremental, non cannibalizing growth for Mars through niche products targeting individual consumers rather than the mass market. The company accomplishes this by creating supply chain efficiencies, thanks to its parent company, and using the direct selling business model. Direct selling can be a more relational, customized form of selling and allows for even greater market reach and segmentation.

Questions for Discussion

1. How is The Cocoa Exchange different than its parent company (Mars, Inc.)

2. What are the benefits of the direct selling model? How does this impact the supply chain

3. How are The Cocoa Exchange’s sustainability efforts impactful