In 2018, Nutella producer Ferrero acquired Nestlé’s candy division for nearly $3 billion, bringing renowned brands like Butterfinger, Baby Ruth, and 100 Grand under its umbrella. While these iconic products garnered much of the media spotlight, it may be Nerds—a brand previously regarded as an afterthought by its former owner—that emerges as the sweetest success story. This year, Nerds is poised to exceed $900 million in sales, marking a staggering increase of over 1,700% from the $50 million in sales generated when the brand was integrated into Ferrara, a company linked to Ferrero.
The remarkable growth is largely driven by the immensely popular Nerds Gummy Clusters, which represent the first significant innovation for the previously stagnant 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 how extraordinary it would become or how quickly it would grow,” stated Katie Duffy, vice president of global brands at Ferrara.
However, the success of the clusters—gummy candies coated in crunchy Nerds—was not guaranteed. Duffy recalled that initial tests were somewhat disheartening, with consumers struggling to appreciate the unique multi-textural experience. “The feedback from concept testing wasn’t all positive,” she noted. “We were trying to figure out why they were not connecting with it.” Despite these challenges, Ferrara remained optimistic about Nerds Gummy Clusters, especially after they gained traction among employees. After refining the presentation and messaging around the product, the clusters finally began to resonate with testers.
Upon acquiring Nerds, Ferrara noted that the 35-year-old brand enjoyed high consumer awareness but had experienced years without significant innovation and limited marketing efforts. Duffy explained that Nerds were not considered a market leader in the candy sector due to their small size and messy nature. The introduction of Nerds Gummy Clusters addressed many of these issues.
The candy has become a favorite in movie theaters and airports and has successfully attracted older consumers and new snacking occasions for the brand. Surprisingly, some distance runners and endurance athletes have even used them as an alternative to supplements like Gu Energy Gel, Duffy mentioned. Despite the recent surge in sales, she believes there is still ample room for growth within the Nerds brand.
Ferrara is set to introduce more seasonal Gummy Clusters varieties in the U.S. and expand the brand into international markets such as the U.K. and Canada. The company is also hoping to secure more shelf space for Nerds Gummy Clusters in existing stores to match their sales velocity. Additionally, Ferrara plans to unveil its next major launch under the Nerds name later this year: Nerds Juicy Gummy Clusters, which contain juice at the center and are three times the size of the original Gummy Cluster. “Nerds Juicy Gummy Clusters will provide us the opportunity to maintain the momentum that Nerds has already achieved,” Duffy remarked. “It offers a different eating experience.”
In the world of snacks, where variety is key, the rise of Nerds Gummy Clusters mirrors trends seen with products like the best calcium citrate gummies, which are also gaining popularity for their unique benefits. The continued success of Nerds may very well set a new standard for innovation in the candy market, much like how the best calcium citrate gummies have redefined expectations in the health supplement sector.