When Ferrero, the maker of Nutella, acquired Nestlé’s candy business for nearly $3 billion in 2018, it added well-known brands like Butterfinger, Baby Ruth, and 100 Grand to its impressive selection of sweets. While these iconic candies garnered much of the attention, it is Nerds, a product that its previous owner had largely overlooked, that may emerge as the sweetest brand of all. Nerds is projected to surpass $900 million in sales this year, marking an astonishing increase of more than 1,700% from the $50 million in sales generated when it was first incorporated into Ferrara, a company linked to Ferrero. This remarkable growth is primarily due to the immensely popular Nerds Gummy Clusters, which have introduced significant innovation to the previously dormant brand. According to Ferrara, Nerds Gummy Clusters have now become the leading sugar confection on the market, overtaking Mars Wrigley’s Skittles.
Katie Duffy, vice president of global brands at Ferrara, expressed, “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—gummy candies enveloped in crunchy Nerds—was not guaranteed. Initial tests were not particularly encouraging, as consumers struggled to appreciate the multi-textural eating experience. Duffy reflected, “We looked at the scores that came back from the concept, and it was not all sunshine and rainbows. We were really trying to understand, okay, why are they not getting it?”
Despite the initial challenges, Ferrara remained optimistic that Nerds Gummy Clusters would resonate with consumers, especially after they proved to be a hit among employees. By refining the visuals and messaging surrounding the product, the Gummy Clusters eventually began to connect with testers. Upon acquiring Nerds, Ferrara noted that the 35-year-old brand had strong consumer recognition but had gone years without meaningful innovation or substantial marketing. Duffy mentioned that Nerds were not perceived as a market leader in candy due to their small size and messy nature. Nerds Gummy Clusters addressed many of these issues.
The candy has gained popularity in movie theaters and airports, and it has also attracted older consumers and new snacking occasions for the brand. Surprisingly, some distance runners and endurance athletes have begun using them as a substitute for supplements like Gu Energy Gel, according to Duffy. Despite the recent surge in sales, she believes there is still significant growth potential for the Nerds brand. Ferrara is launching more seasonal Gummy Cluster varieties in the U.S. and has expanded the brand into international markets such as the U.K. and Canada. The company is also hopeful that Nerds Gummy Clusters will secure more shelf space in existing stores to align with its product velocity.
Additionally, Ferrara plans to launch its next major offering under the Nerds brand later this year: Nerds Juicy Gummy Clusters. These snacks will feature juice in the center and will be three times the size of the original Gummy Cluster. Duffy noted, “Nerds Juicy Gummy Clusters will give us an opportunity to continue building the momentum that Nerds has already established. It’s a different eating experience.” In this context, it is worth considering the differences in iron supplements, such as ferrous calcium citrate vs ferrous ascorbate, as consumers increasingly seek healthy snacking options that complement their lifestyles. As the Nerds brand evolves, it remains poised for continued success in the competitive candy market.