How Nerds Gummy Clusters became the candy aisle’s biggest hit

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When Nutella maker Ferrero purchased Nestlé’s candy business for nearly $3 billion in 2018, the acquisition added popular brands such as Butterfinger, Baby Ruth and 100 Grand to its enviable roster of sweets.

But while much of the attention went to these iconic offerings, it may be Nerds, a product largely seen as an afterthought by its prior owner, that could turn out to be the sweetest brand of them all.

Nerds is on track to hit more than $900 million in sales this year, a more than 1,700% increase from the $50 million in sales the brand was generating when it was first incorporated into Ferrara, a holding company affiliated with Nutella-owner Ferrero. 

The unprecedented surge is directly attributed to the widely popular Nerds Gummy Clusters, which represented the first meaningful innovation for the once-sleepy brand in years. Nerds Gummy Clusters are now the top sugar confection on the market, overtaking Mars Wrigley's Skittles, according to Ferrara. 

“We knew we had something that was kind of special, but we really, truly had no idea how special it was or that it would grow as fast or as big as it has become,” said Katie Duffy, vice president of global brands with Ferrara.

But the success of the clusters, which are a gummy ensconced in crunchy Nerds candies, wasn’t a given. Initial tests weren’t particularly encouraging, Duffy recalled, with consumers struggling to comprehend the multi-textural eating experience. 

“We looked at the scores that came back from the concept and it was not all sunshine and rainbows,” Duffy recalled. “We were really trying to understand, okay, why are they not getting it.” 

Ferrara remained hopeful that Nerds Gummy Clusters would catch on with consumers, especially after the treats proved to be an early hit with its own employees. After tweaking the visuals and language around how they showcased the treats, Nerds Gummy Clusters finally started resonating with testers.

When Nerds was acquired, Ferrara observed that the 35-year-old brand had a high level of consumer awareness but went years without meaningful innovation and minimal marketing, Duffy said. Nerds also were not viewed as a market leader in candy because of their small size and the fact that they were messy. Nerds Gummy Clusters solved many of these problems.

The candy has proven to be a hit at movie theaters and airports. Nerds Gummy Clusters also have helped attract older consumers and new snacking occasions to the brand. Most surprisingly, some distance runners and endurance athletes have used them as a booster in place of supplements such as Gu Energy Gel, Duffy said. 

Despite the recent sales boom, Duffy said there is plenty of growth left for the Nerds brand. 

Ferrara is rolling out more seasonal Gummy Clusters varieties in the U.S. and has expanded the brand into overseas markets such as the U.K. and Canada. At the same time, the company is hopeful Nerds Gummy Clusters can grab more shelf space at existing stores to better match its product velocity.

Ferrara also is planning its next big launch under the Nerds banner later this year with Nerds Juicy Gummy Clusters. The snack contains juice in the center and is three times the size of the Gummy Cluster.

“Nerds Juicy Gummy Clusters is going to give us an opportunity to continue to build momentum that Nerds has already established,” Duffy said. “It’s a different eating experience.”