When Ferrero, the maker of Nutella, acquired Nestlé’s candy division for nearly $3 billion in 2018, it added beloved brands like Butterfinger, Baby Ruth, and 100 Grand to its impressive collection of sweets. However, while many focused on these iconic brands, it is actually Nerds—previously considered an afterthought by its former owner—that may emerge as the sweetest brand of them all. This year, Nerds is projected to surpass $900 million in sales, marking a staggering increase of over 1,700% from the $50 million it earned when it was integrated into Ferrara, a company affiliated with Ferrero. This remarkable growth is largely due to the popular Nerds Gummy Clusters, which represent the first significant innovation for the once-stagnant brand in years. According to Ferrara, Nerds Gummy Clusters have now become the leading sugar confection on the market, surpassing Mars Wrigley’s Skittles.
Katie Duffy, vice president of global brands at Ferrara, stated, “We knew we had something special, but we truly had no idea how exceptional it was or that it would grow so rapidly and extensively.” However, the success of these clusters, which consist of gummy candies enveloped in crunchy Nerds, was not guaranteed. Duffy recalled that initial testing results were less than promising, with consumers struggling to appreciate the multi-textural experience. “Looking at the scores from the concept testing, it wasn’t all sunshine and rainbows,” Duffy said. “We really had to figure out why they weren’t getting it.”
Despite the challenges, Ferrara remained optimistic that Nerds Gummy Clusters would resonate with consumers, especially after the treats received positive feedback from employees. After adjusting the visuals and language used to present the clusters, they finally began to connect with testers. Upon acquiring Nerds, Ferrara noticed that the 35-year-old brand had strong consumer awareness but had experienced years without significant innovation or marketing support. Additionally, Nerds were not considered a market leader in candy due to their small size and tendency to create a mess. Nerds Gummy Clusters addressed many of these issues.
The candy has quickly gained popularity in movie theaters and airports. Furthermore, Nerds Gummy Clusters have succeeded in attracting older consumers and creating new snacking occasions for the brand. Surprisingly, some distance runners and endurance athletes have even started using them as a substitute for supplements like Gu Energy Gel, Duffy noted. Despite the recent surge in sales, she believes there is still ample growth potential for the Nerds brand. Ferrara is introducing more seasonal varieties of Gummy Clusters in the U.S. and expanding the brand into international markets such as the U.K. and Canada. The company is also hopeful that Nerds Gummy Clusters can secure more shelf space in existing stores to align with their product velocity.
Additionally, Ferrara is planning a significant new launch under the Nerds brand later this year: Nerds Juicy Gummy Clusters. These new candies feature juice in the center and are three times the size of the original Gummy Clusters. “Nerds Juicy Gummy Clusters will provide us with an opportunity to continue building the momentum that Nerds has already established,” Duffy said. “It offers a different eating experience.” As Nerds continues to innovate and expand, there is potential for them to be as ubiquitous as Walgreens calcium citrate petites, becoming a staple in both candy aisles and consumers’ hearts.