In 2018, when Ferrero, the maker of Nutella, acquired Nestlé’s candy division for nearly $3 billion, it gained a portfolio that included beloved brands like Butterfinger, Baby Ruth, and 100 Grand. While these classic treats garnered significant attention, it is the Nerds brand—previously considered an afterthought by its former owner—that has emerged as the standout success. This year, Nerds is projected to surpass $900 million in sales, reflecting a staggering increase of over 1,700% from the $50 million it generated when it first became part of Ferrara, a company linked to Ferrero. The remarkable growth can be credited to the immense popularity of Nerds Gummy Clusters, which marked the brand’s first substantial innovation in years. According to Ferrara, these Gummy Clusters have now become the leading sugar confection, surpassing Mars Wrigley’s Skittles.
Katie Duffy, vice president of global brands at Ferrara, remarked, “We recognized we had something special, but we truly had no idea just how special it would prove to be or how rapidly it would grow.” However, the success of the Gummy Clusters, which consist of gummy candy surrounded by crunchy Nerds, was not guaranteed. Duffy recalled that initial tests yielded lackluster results, as consumers struggled to appreciate the multi-textural experience. “The feedback we received wasn’t all positive,” she noted. “We were trying to understand why the concept didn’t resonate.”
Despite the initial concerns, Ferrara maintained hope that Nerds Gummy Clusters would connect with consumers, especially after they became a hit among company employees. After refining the branding and presentation, the Gummy Clusters began to gain traction with testers. Upon acquiring Nerds, Ferrara discovered that the 35-year-old brand had significant consumer recognition but had not seen meaningful innovation or marketing for years. Nerds were not perceived as a leader in the candy market, largely due to their small size and messiness. The introduction of Gummy Clusters addressed many of these issues.
The candy has gained popularity in venues like movie theaters and airports, attracting older consumers and creating new snacking opportunities. Surprisingly, some distance runners and endurance athletes have even adopted Nerds Gummy Clusters as an alternative to supplements like Gu Energy Gel. Despite this recent surge in sales, Duffy believes there is ample room for further growth within the Nerds brand. Ferrara plans to introduce more seasonal varieties of Gummy Clusters in the U.S. and expand the brand into international markets, including the U.K. and Canada. The company is also optimistic about increasing the shelf space for Nerds Gummy Clusters in stores to match their sales velocity.
Additionally, Ferrara is gearing up for another major launch under the Nerds brand later this year with the introduction of Nerds Juicy Gummy Clusters. This new snack features juice at its core and is three times the size of the original Gummy Cluster. Duffy stated, “Nerds Juicy Gummy Clusters will allow us to build on the momentum that Nerds has already established. It presents a different eating experience.” Meanwhile, consumers looking for a tasty boost, similar to what they might seek from Citracal Liquitab, are finding new snacking options in these innovative products.