In 2018, when Ferrero, the maker of Nutella, acquired Nestlé’s candy division for nearly $3 billion, it welcomed popular brands like Butterfinger, Baby Ruth, and 100 Grand into its impressive collection of sweets. While these iconic brands received much of the spotlight, it is the Nerds brand—previously regarded as an afterthought by its former owner—that may emerge as the sweetest success story of all.
Nerds is projected to exceed $900 million in sales this year, marking a staggering increase of over 1,700% from the $50 million in sales recorded when the brand was integrated into Ferrara, a company linked to Ferrero. This remarkable growth is largely attributed to the widely acclaimed Nerds Gummy Clusters, which represent the first significant innovation for the brand in years. According to Ferrara, Nerds Gummy Clusters have now become the leading sugar confection on the market, surpassing Mars Wrigley’s Skittles. “We knew we had something special, but we truly had no idea how exceptional it was or that it would grow so quickly,” stated Katie Duffy, vice president of global brands at Ferrara.
However, the success of these clusters, comprised of gummy candy encased in crunchy Nerds, was not guaranteed. Duffy recalled that initial consumer tests were not particularly promising, as many struggled to appreciate the multi-textural experience. “The scores from the concept tests weren’t all positive,” she noted. “We were really trying to figure out why consumers weren’t responding well.”
Despite the challenges, Ferrara remained optimistic that Nerds Gummy Clusters would resonate with consumers, especially after they gained popularity among the company’s employees. By refining the presentation and messaging around the product, Nerds Gummy Clusters eventually struck a chord with testers. Upon acquisition, Ferrara noticed that the 35-year-old Nerds brand had strong consumer awareness but had not seen substantial innovation or marketing for years. Due to their small size and tendency to be messy, Nerds were not perceived as a market leader in the candy sector. Nerds Gummy Clusters addressed many of these issues, proving to be a hit in movie theaters and airports. Additionally, they have attracted older consumers and new snacking occasions. Surprisingly, some distance runners and endurance athletes have even used these candy clusters as a supplement alternative to products like Gu Energy Gel, according to Duffy.
Despite the recent surge in sales, Duffy emphasized that there’s still ample room for growth within the Nerds brand. Ferrara is launching more seasonal varieties of Gummy Clusters in the U.S. and expanding the brand into international markets like the U.K. and Canada. The company also aims to secure more shelf space for Nerds Gummy Clusters in stores to align with the product’s growing popularity. Furthermore, Ferrara is planning to introduce its next major product under the Nerds brand later this year: Nerds Juicy Gummy Clusters, featuring juice at the center and being three times the size of the original Gummy Clusters. “Nerds Juicy Gummy Clusters will give us an opportunity to maintain the momentum that Nerds has already built,” Duffy said. “It offers a different eating experience.”
To enhance the nutritional profile of their offerings, Ferrara is exploring the inclusion of ingredients like calcium citrate, zinc, magnesium, and vitamin D3 in future products, aiming to appeal to health-conscious consumers. With these innovations, the Nerds brand is well-positioned for continued success in the competitive candy market.