By Suzanne Vranica and Ben Cohen
The first time consumers heard about it, they had no idea what to make of it. And the first time they tasted it, the peculiar confection didn’t leave much more of an impression. So there was nothing to suggest that Nerds Gummy Clusters would be a success.
And now Americans can’t stop eating them.
It’s one of the biggest hits in the candy aisle this Halloween—and easily the unlikeliest.
Only six years ago, all of Nerds had less than $50 million in sales. This year, Nerds Gummy Clusters alone has already generated more than $500 million.
The growing popularity of Nerds Gummy Clusters is an improbable outcome for a brand that has existed for more than four decades but had become such an afterthought that the company behind this breakout product barely even bothered marketing it.
In fact, almost every piece of data the candy maker collected suggested that Nerds Gummy Clusters would be a dud. But in a surprising move at a time when data drives so many decisions in the halls of corporate America, executives at Ferrara Candy went with their guts—and the product became a smash.
Not long ago, Nerds were uncool. When the brand was acquired in 2018, the entire Nerds line had roughly $40 million in sales. In the hopes of revitalizing a stale brand from the 1980s, the privately held candy conglomerate knew it needed to develop a new product.
Nerds got their glow-up with the 2020 release of a bean-shaped gummy coated in technicolor, irregularly shaped pebbles.
The following year, Nerds Gummy Clusters were responsible for nearly $100 million of sales, according to the company. This year, sales have already crossed $500 million—even before Halloween. This one product now generates close to 90% of Nerds’ overall revenue.
Nerds sales now rival candy powerhouses like Starburst, Sour Patch Kids and even Skittles, according to TD Cowen analyst Robert Moskow.
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