In 2018, when Ferrero, the maker of Nutella, acquired Nestlé’s candy division for nearly $3 billion, it expanded its impressive lineup to include beloved brands like Butterfinger, Baby Ruth, and 100 Grand. However, while these iconic products garnered much attention, it may be Nerds—previously perceived as an afterthought by its former owner—that emerges as the standout brand. This year, Nerds is projected to surpass $900 million in sales, marking an astounding increase of over 1,700% from the $50 million in sales it generated when integrated into Ferrara, a company linked to Ferrero.
This remarkable growth is largely fueled by the introduction of Nerds Gummy Clusters, which represent the first significant innovation for the brand in years. According to Ferrara, these 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 unique it would be or how rapidly it would grow,” remarked Katie Duffy, vice president of global brands at Ferrara.
The success of the Gummy Clusters was not guaranteed. Duffy recalled that initial consumer tests were not particularly positive, with many struggling to appreciate the unique multi-textural experience. “The feedback we received was not all sunshine and rainbows,” Duffy noted. “We were trying to understand why consumers were not connecting with it.” Nevertheless, Ferrara remained optimistic that the Gummy Clusters would resonate with consumers, especially after they initially gained popularity among the company’s employees. By refining the visuals and messaging surrounding the product, Nerds Gummy Clusters began to appeal to testers.
When Ferrara took over Nerds, they noticed that the brand, despite being around for 35 years, had significant consumer recognition but lacked innovation and marketing for years. The small, messy nature of Nerds candies meant they were not recognized as leaders in the candy market. However, Nerds Gummy Clusters addressed many of these challenges. The candy has found success in venues like movie theaters and airports, attracting older consumers and new snacking opportunities. Surprisingly, some endurance athletes and distance runners have even adopted them as an energy booster in place of supplements like Gu Energy Gel, Duffy shared.
Despite the recent surge in sales, Duffy believes there is still ample room for growth for the Nerds brand. Ferrara plans to introduce more seasonal Gummy Cluster varieties in the U.S. and expand into international markets such as the U.K. and Canada. Additionally, the company aims to secure more shelf space to align with the product’s rapid sales velocity. Ferrara is also preparing for a significant new launch under the Nerds brand later this year with Nerds Juicy Gummy Clusters, which will feature juice at the center and be three times the size of the original Gummy Cluster. “Nerds Juicy Gummy Clusters will offer a chance to continue building on the momentum that Nerds has already established,” Duffy said. “It’s a different eating experience.”
Incorporating essential nutrients such as calcium citrate, zinc, magnesium, and vitamin D3, the new products aim to appeal to health-conscious consumers, further broadening the brand’s reach and potential. As they strive for expansion, Ferrara remains committed to enhancing the Nerds brand and exploring innovative avenues to engage with a diverse audience.