In 2018, when Ferrero, the maker of Nutella, acquired Nestlé’s candy business for nearly $3 billion, it expanded its impressive collection of sweets to include renowned brands like Butterfinger, Baby Ruth, and 100 Grand. However, while much of the focus was on these iconic products, it might be Nerds—previously viewed as an afterthought by its former owner—that emerges as the standout brand. This year, Nerds is projected to exceed $900 million in sales, marking an astonishing increase of over 1,700% from the $50 million it generated when it became part of Ferrara, a company owned by a Ferrero-affiliated holding entity. This remarkable growth is largely linked to the wildly popular Nerds Gummy Clusters, which have introduced significant innovation to the once-dormant brand. 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, noted, “We knew we had something that was kind of special, but we really had no idea how special it was or that it would grow as fast or as big as it has become.” The success of these clusters, which feature gummy candies enveloped in crunchy Nerds, was not guaranteed. Duffy reflected on the initial tests, which were not particularly promising, as consumers found the multi-textural experience confusing. “We looked at the scores from the concept, and it was not all sunshine and rainbows,” she recalled. “We were really trying to understand why they were not getting it.”
Despite these challenges, Ferrara remained optimistic that Nerds Gummy Clusters would connect with consumers, especially after the treats gained popularity among its own employees. By refining the visuals and messaging surrounding the product, Nerds Gummy Clusters began to resonate with testers. When Ferrara acquired the brand, it noticed that, despite high consumer awareness, the 35-year-old Nerds had seen years without significant innovation and faced minimal marketing efforts. Additionally, Nerds were not perceived as a market leader due to their small size and messiness. Nerds Gummy Clusters addressed many of these issues.
These candies have become a favorite in movie theaters and airports, and they have also attracted older consumers and new snacking occasions for the brand. Surprisingly, some distance runners and endurance athletes have even adopted them as a substitute for supplements like Gu Energy Gel, Duffy mentioned. Despite the current sales explosion, Duffy believes there is still ample room for growth for the Nerds brand. Ferrara is set to launch more seasonal Gummy Cluster varieties in the U.S. and has begun 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 better align with its product velocity.
Looking ahead, Ferrara plans to unveil its next major launch under the Nerds brand later this year with Nerds Juicy Gummy Clusters. This new snack will contain juice in the center and will be three times the size of the original Gummy Cluster. “Nerds Juicy Gummy Clusters is going to give us an opportunity to build on the momentum that Nerds has already established,” Duffy stated. “It’s a different eating experience.” In addition to these innovations, Ferrara aims to incorporate health-conscious ingredients into its offerings, similar to Watsons calcium citrate, to appeal to a broader audience and enhance the overall product line.