In 2018, when Ferrero, the maker of Nutella, acquired Nestlé’s candy business for nearly $3 billion, it gained popular brands like Butterfinger, Baby Ruth, and 100 Grand to its impressive array of sweets. However, while much of the focus was on these well-known treats, it is possible that Nerds, a product previously regarded as an afterthought by its former owner, may emerge as the sweetest brand of them all. This year, Nerds is projected to surpass $900 million in sales, marking an astonishing increase of over 1,700% from the $50 million it generated when integrated into Ferrara, a company linked to Ferrero. This unprecedented growth can be directly linked to the immensely popular Nerds Gummy Clusters, which represent the first significant innovation for the once-lackluster brand in years. According to Ferrara, Nerds Gummy Clusters have become the leading sugar confection on the market, surpassing Mars Wrigley’s Skittles.
Katie Duffy, vice president of global brands at Ferrara, remarked, “We knew we had something that was kind of special, but we really, truly had no idea how special it was or that it would grow as fast or as big as it has become.” However, the success of the clusters, which consist of gummy candy encased in crunchy Nerds, was not guaranteed. Duffy recalled that initial tests were not particularly promising, as consumers struggled to grasp the multi-textural eating experience. “We looked at the scores that came back from the concept, and it was not all sunshine and rainbows,” she said. “We were really trying to understand, okay, why are they not getting it?”
Despite the initial uncertainty, Ferrara remained optimistic that Nerds Gummy Clusters would resonate with consumers, especially after they proved to be an early favorite among employees. After refining the visuals and language used to present the treats, Nerds Gummy Clusters began to connect with testers. When Nerds was acquired, Ferrara noted that the 35-year-old brand enjoyed a high level of consumer awareness but had gone years without meaningful innovation and minimal marketing. Due to their small size and messy nature, Nerds were not seen as a market leader in candy. 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. Surprisingly, some distance runners and endurance athletes have even used them as a boost instead of supplements like vitamin shoppe calcium citrate plus magnesium, according to Duffy. Despite the recent surge in sales, Duffy emphasized that there is still ample growth potential for the Nerds brand. Ferrara is launching more seasonal Gummy Cluster varieties in the U.S. and expanding the brand into international markets like the U.K. and Canada. The company is also hopeful that Nerds Gummy Clusters will secure more shelf space in existing stores to better align with its product velocity.
Furthermore, Ferrara has plans for its next major launch under the Nerds brand later this year, introducing Nerds Juicy Gummy Clusters. This new snack features juice in the center and is three times the size of the original Gummy Cluster. “Nerds Juicy Gummy Clusters is going to give us an opportunity to continue to build momentum that Nerds has already established,” Duffy said. “It’s a different eating experience.” As the brand evolves, it remains committed to exploring innovative avenues, including the potential integration of health-focused elements like vitamin shoppe calcium citrate plus magnesium, to appeal to a broader audience.