Mars Enters Organic Market With Seeds of Change Purchase

SANTA FE, NM—In yet another combining of mainstream and natural products enterprises, privately held organic seed company Seeds of Change is being acquired by candy giant Mars Inc. and has launched a 17-product organic foods line.

Terms of the acquisition by the privately held Mars were not revealed, but Steve French, Seeds of Change food division’s GM, says Seeds will continue to operate as an independent, entrepreneurial effort. Sources say the Mars acquisition comes on the heels of the successful launch of the Seeds food line.

Mars, based in McLean, VA, already has entered the natural products marketplace with its vitamin and antioxidant-based VO2Max energy bar, which this spring graduated to regional distribution after a successful trial in California.

Seeds’ newly launched rice and grain blends, pasta sauces, salad dressings, salsas, and soup mixes appeared nationally in natural foods stores and supermarkets in October and are sold under the Seeds of Change brand name.

“Acceptance has been beyond our expectations. Response from distributors and retailers has been phenomenal,” French says.

Products are comanufactured, and not all of the food line comes from Seeds of Change organic seeds. However, all products are certified organic, French says.

Seeds of Change’s decision to enter the $3.5 billion organic foods marketplace was based on responses to about 20,000 mailed surveys, French says.

“We started in June 1996 with an extensive review of the consumer and the marketplace. It took nine months to develop a complete business plan.”

French says Seeds of Change expects to become a significant player in the organic foods business over the next three to four years. He also expects the company’s food division to grow larger than its seed business. Garden seeds, sold nationally via catalog and in natural foods stores, currently generate annual sales of less than $2 million. However, the company’s average catalog order has doubled over the last year, French says. “Organic foods will become the majority sales generator over the seed business in the future,” he says.

The new line is marketed in college newspapers and the alternative press, among other outlets.