The Resurgence of Nerds Candy: From Obscurity to the Super Bowl
If you’re a child of the ’80s, you likely remember Nerds, the pebble-shaped novelty candy that came in colorful packaging with two separate flavors per box. It had a unique nerdish vibe that set it apart from other candies of the era. Now, after four decades, that vibe is back and stronger than ever.
Nerds has become an unexpected star of the candy aisle once again. In recent years, annual sales have skyrocketed from $50 million to $500 million, according to the brand’s management. And to top it off, Nerds is making its debut as a Super Bowl advertiser. This unlikely success story mirrors the rise of other old-school brands like the Stanley water bottle, which has recently gained popularity through the introduction of colorful and limited-edition models.
The growth of Nerds can be attributed to the launch of a spinoff candy called Nerds Gummy Clusters. Introduced in 2020, these gummy candies coated in Nerds offer a unique mouthfeel that combines chewiness with crunchiness. The introduction of this new product took traditional Nerds in an exciting new direction and received an overwhelming response from consumers.
Legacy brands like Nerds face the challenge of staying modern and desirable for the present day while also capitalizing on nostalgia. However, old-school candies have become hot sellers in recent years, contributing to the $42.6 billion confectionary business. Iconic Candy, a company specializing in nostalgic favorites, reported a sales increase of 20% to 40% annually and plans to relaunch retro gum brands this year.
As Ferrara, the Chicago-based candy company that owns Nerds, mounts its new campaign for the brand, it aims to emphasize both its history and recent re-emergence. The Super Bowl ad showcases the Gummy Cluster as a colorful contemporary character, reminiscent of the M&M’s characters, dancing to an ’80s tune. The ad concludes with a cameo appearance by Addison Rae, a singer, actress, and dancer, to bring “people who have loved Nerds for years and years” on a journey “into the now.”
While Nerds’ sales are impressive, there is still room for growth. With an annual sales figure of $500 million, Nerds only has a household penetration of 16%, leaving 84% of homes without Nerds. Ferrara aims to reach a benchmark of 25% penetration, similar to major candy brands.
The current success of Nerds harkens back to its breakthrough days in the ’80s when it was created by Sunmark as part of a lineup of Willy Wonka-themed treats. It quickly gained popularity and was named candy of the year in 1985. Eventually, the brand became part of Nestlé and was acquired by Ferrara in 2018. Now, Ferrara is making a big bet on Nerds with a $10 million campaign for the Super Bowl.
Some marketing professionals question if Nerds mania has already peaked and if there will be diminishing returns. However, the Nerds team remains optimistic and believes that there is still untapped potential for growth. As Greg Guidotti, Ferrara’s chief marketing officer, said, “We’ve not found the ceiling on this business yet.”
The resurgence of Nerds candy is a testament to the power of nostalgia and the ability of brands to reinvent themselves. With its unique appeal and innovative products like Nerds Gummy Clusters, Nerds has captured the attention of consumers once again. Whether it’s a child of the ’80s reliving their candy-filled memories or a new generation embracing yesteryear chic, Nerds has proven that it can stand the test of time and continue to be a beloved candy brand for years to come.
