In 2018, Ferrero, the maker of Nutella, acquired Nestlé’s candy division for nearly $3 billion, bringing well-known brands like Butterfinger, Baby Ruth, and 100 Grand into its impressive portfolio. While these iconic treats garnered much attention, it might be Nerds, a brand previously regarded as an afterthought by its former owner, that emerges as the sweetest success story. This year, Nerds is projected to surpass $900 million in sales—a staggering increase of over 1,700% from the $50 million it generated when it was incorporated into Ferrara, a company linked to Ferrero.
This remarkable growth is primarily due to the immense popularity of Nerds Gummy Clusters, marking the first significant innovation for the previously stagnant brand in years. According to Ferrara, Nerds Gummy Clusters have become the leading sugar confectionery, surpassing Mars Wrigley’s Skittles. “We knew we had something special, but we really had no idea how extraordinary it would become or how fast it would grow,” remarked Katie Duffy, vice president of global brands at Ferrara.
However, the success of these clusters, which feature gummy candy enveloped in crunchy Nerds, was not guaranteed. Initial testing was less than promising, with consumers struggling to appreciate the multi-textural experience. Duffy reflected, “The scores we received from the concept were not overly positive. We needed to understand why consumers were not connecting with it.” Despite this, Ferrara remained optimistic about the potential of Nerds Gummy Clusters, especially after they became an early favorite among employees. By refining the visuals and messaging around the product, the clusters began to resonate with testers.
When Ferrara took over Nerds, they noticed that the 35-year-old brand had strong consumer awareness but had not seen meaningful innovation or marketing for years. Moreover, Nerds were not perceived as a market leader due to their small size and tendency to create a mess. Nerds Gummy Clusters addressed many of these issues, becoming a hit in movie theaters and airports. They have also attracted older consumers and new snacking occasions. Surprisingly, some endurance athletes have even started using them as a substitute for supplements like Gu Energy Gel. Duffy noted that the brand still has ample room for growth despite the recent sales spike.
Ferrara is introducing more seasonal Gummy Clusters varieties in the U.S. and has expanded the brand into international markets like the U.K. and Canada. The company is also eager for Nerds Gummy Clusters to secure more shelf space in existing stores to align with its product velocity. Furthermore, Ferrara plans to launch Nerds Juicy Gummy Clusters later this year, which will feature juice at the center and be three times the size of the original Gummy Cluster. “Nerds Juicy Gummy Clusters will provide us with an opportunity to maintain the momentum that Nerds has already built,” Duffy stated. “It offers a different eating experience.”
Amid all this, there has been a growing interest in the calcium citrate uses associated with the nutritional benefits of the ingredients in some candy formulations. The incorporation of such elements could further enhance the appeal of products like Nerds Gummy Clusters, allowing them to attract health-conscious consumers eager for a tasty treat. As the brand continues to evolve, it is clear that there is still much potential for Nerds to capture even more market share.