Why Nerds Gummy Clusters Are Like iPhones

It is not an accident that we love our Nerds Gummy Clusters

Nerds Gummy Clusters

Around for more than 40 years, Nerds rarely excited us. Bon Appétit magazine even called them the gravel at the bottom of our fish tank. Maybe, named the Candy of the Year in 1985, they were once popular. And, displaying some creativity, they did have a box for girls and boys. Girls, they discovered ate Nerds from their hands while boys poured them into their mouths. The result was the “two-cell” box with a sliding top.

All changed with a 2018 buyer that wanted to invigorate the brand. They knew, though, that they had to develop something new. Consequently, rather like iPhone models, they added features to their basic Nerds. The goal was a poppable candy with minimal mess. Outside, It would be crunchy while the inside was a gummy. As for the name, they found that the word “gummy” was most appealing. Then, taste and texture testing the product led to a “tangier” bean and a new crunch-to-chew ratio. Even achieving a small enough size was a challenge. However, in 2020 they were ready to file for their patent.

And the rest of the story is candy history.

With their “multi-sensorial” texture experience, they hit the jackpot. But it took a Kylie Jenner Instagram post to skyrocket sales.

Our Bottom Line: Supply Elasticity

When, caught by surprise, the Nerds Gummy Cluster manufacturer (Ferrara), quickly expanded production, economists would have said that their supply was elastic. Referring to elasticity, we just mean how much the quantity supplied responds to changes in price. Here, for Nerds Gummy Clusters, I am taking the liberty of assuming we can default to revenue. Seeing the popularity of their product, they had the ability to reconfigure their land, labor, and capital rather rapidly.  According to the Wall Street Journal, they ramped up production by expanding output a whopping 350%.

During 2020, Nerds Gummy Cluster sales were at $8 million. Now they exceed $523 million. Predictably, they dominate Nerds candy sales:

With Halloween, the brand’s sales probably hit the stratosphere. If, as the National Retail Federation expected, each of us spent 67% of $104 on Halloween Candy, a lot probably went for Nerds Gummy Clusters:

My sources and more: Thanks to my Axios email for inspiring today’s Halloween candy post. From there, the perfect complement was the National Retail Federation and details about Nerds Gummies here and here. Please note also that our featured image is from WSJ.