When Ferrero, the maker of Nutella, acquired Nestlé’s candy division for nearly $3 billion in 2018, it expanded its impressive collection of sweets with beloved brands like Butterfinger, Baby Ruth, and 100 Grand. While these iconic candies garnered significant attention, it could very well be Nerds—previously regarded as an afterthought by its former owner—that emerges as the most successful brand of all.
This year, Nerds is projected to exceed $900 million in sales, marking an astounding 1,700% increase from the $50 million in sales generated when it became a part of Ferrara, a company affiliated with Ferrero. This remarkable growth can be directly linked to the immensely popular Nerds Gummy Clusters, which represent the first substantial innovation for the previously dormant brand in years. According to Ferrara, Nerds Gummy Clusters have now surpassed Mars Wrigley’s Skittles to become the leading sugar confection on the market. “We knew we had something special, but we genuinely had no idea just 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 these gummy clusters was not guaranteed. Initial tests were less than promising, with consumers struggling to appreciate the multi-textural eating experience. “We reviewed the scores from the concept, and it was not all sunshine and rainbows,” Duffy noted. “We were trying to understand why they weren’t connecting with it.” Despite these challenges, Ferrara remained optimistic that Nerds Gummy Clusters would resonate with consumers, especially after they became popular among the company’s own employees. After refining the packaging and messaging, Nerds Gummy Clusters began to resonate with testers.
Upon acquisition, Ferrara recognized that the 35-year-old Nerds brand had significant consumer awareness but had gone years without meaningful innovation and minimal marketing. Duffy pointed out that Nerds were not considered a leading candy brand due to their small size and messy nature. Nerds Gummy Clusters addressed many of these issues and have become particularly popular in movie theaters and airports. They have also attracted older consumers and opened up new snacking occasions for the brand. Surprisingly, some distance runners and endurance athletes have even turned to them as an alternative to supplements like Gu Energy Gel, according to Duffy.
Despite the recent surge in sales, Duffy believes there is still ample opportunity for growth within the Nerds brand. Ferrara is introducing more seasonal Gummy Cluster varieties in the U.S. and has expanded into international markets like the U.K. and Canada. Additionally, the company is hopeful that Nerds Gummy Clusters can secure more shelf space in existing stores to better align with its product velocity. Ferrara is also preparing for its next major launch under the Nerds brand later this year with Nerds Juicy Gummy Clusters, which feature juice at the center and are three times the size of the original Gummy Cluster. “Nerds Juicy Gummy Clusters will provide us with an opportunity to sustain the momentum that Nerds has already built,” Duffy explained. “It offers a different eating experience.”
In relation to the ongoing innovation, the process of calcium citrate to carbonate conversion has been a topic of interest, particularly in enhancing product formulations. Ferrara is keen to explore how techniques like calcium citrate to carbonate conversion can further enrich the flavor and texture profiles of its products, ensuring that Nerds continues to evolve and thrive in the competitive candy market.