In 2018, Nutella producer Ferrero acquired Nestlé’s candy division for nearly $3 billion, adding well-known brands like Butterfinger, Baby Ruth, and 100 Grand to its impressive collection of sweets. While these iconic names received much of the spotlight, it may be Nerds—previously considered an afterthought by its former owner—that proves to be the sweetest brand of all. This year, Nerds is projected to exceed $900 million in sales, marking a staggering increase of over 1,700% from the $50 million in sales it achieved when integrated into Ferrara, a company affiliated with Ferrero.
The remarkable growth is largely due to the immensely popular Nerds Gummy Clusters, which represent the first significant innovation for the brand in years. According to Ferrara, Nerds Gummy Clusters have now become the leading sugar confectionery, surpassing Mars Wrigley’s Skittles. “We knew we had something special, but we truly had no idea just how extraordinary it would become or how quickly it would grow,” remarked Katie Duffy, vice president of global brands at Ferrara.
However, the journey to success for these clusters, which feature gummy candies encased in crunchy Nerds, was not without challenges. Initial testing results were less than promising, with consumers struggling to appreciate the unique multi-textural experience. “The scores from the concept were not very encouraging,” Duffy recalled. “We were trying to understand why consumers weren’t connecting with it.”
Despite the rocky start, Ferrara remained optimistic about Nerds Gummy Clusters, especially after they became a hit among employees. After refining the visuals and messaging surrounding the product, they finally began to resonate with testers. Upon acquiring the brand, Ferrara noted that the 35-year-old Nerds had high consumer awareness but had not seen meaningful innovation or marketing for years. Due to their small size and messiness, they were not regarded as a leader in the candy market. Nerds Gummy Clusters addressed many of these issues.
The candy has become a favorite in movie theaters and airports, attracting older consumers and new snacking occasions to the brand. Surprisingly, some distance runners and endurance athletes have even turned to Nerds Gummy Clusters as an energy booster, replacing supplements like Gu Energy Gel, according to Duffy.
Despite the recent surge in sales, Duffy believes there is still substantial growth potential for the Nerds brand. Ferrara is set to introduce more seasonal varieties of Gummy Clusters in the U.S. and expand the brand into international markets like the U.K. and Canada. The company hopes to secure more shelf space in existing stores to better align with the product’s rapid growth.
Later this year, Ferrara plans to launch its next significant product under the Nerds brand: Nerds Juicy Gummy Clusters, which will feature a juice center and be three times larger than the original Gummy Cluster. “Nerds Juicy Gummy Clusters will provide us with an opportunity to continue the momentum that Nerds has already built,” Duffy stated. “It offers a unique eating experience.” Moreover, the new product will contain calcium citrate made from natural sources, adding nutritional value to the treat. With these innovations, Nerds is poised for even greater success in the candy market.