• by Sarah Mahoney , Staff Writer @mahoney_sarah, November 8, 2024

It’s fair to say that Nerds Gummy Clusters are the Ryan Reynolds of the candy business: Everyone is talking about the brand, which can’t seem to do anything wrong. Sales keep skyrocketing, with household penetration up 3.3 points since last year’s Super Bowl ad, reaching $809 million in annual sales. Then there’s the glowing business press: The Wall Street Journal's recent love letter charted the brand’s humble 1980s origin story to current star status. However, while the company returns to the Super Bowl again this year, it is thinking carefully about how that effort can keep the growth going. Joey Rath, Nerds’ global marketing director, explains.

CPG Insider: Nerds had so much success with last year’s “Flashdance” Super Bowl spot, starring influencer Addison Rae. Is that why you decided to return to the Super Bowl?

Joey Rath: This is the world's biggest stage, and we strategically view this as an opportunity to get as many eyeballs as possible. Last year showed us how that paid off, and this year, our primary business objective is to grow household penetration again.

It’s also clear that the brand has become part of culture. We’re surprised by how many people dressed up as Gummy Clusters for Halloween, for example. Fans talk about us on social media.

CPG Insider: How much can-you-top-this pressure are you feeling?

Rath: We were so surprised at the amazing fan response we had to our Super Bowl spot. We went into it thinking this would be a huge opportunity to engage with a larger audience, reaching consumers with Gummy Clusters. Now that we know that’s true, we’re stepping it up versus last year, focusing on newly released limited-time flavors. There are two, and they are already out in the market, and that’s a direct response to consumer requests.

The flavors themselves are inspired by football, set up as a rivalry between Berry Punch Rush, a sort of rookie flavor, and a tried-and-true with Grape Strawberry Blitz. Those flavors are just the start. There’s a “Make the rivalry sweeter” sweepstakes in stores, and more marketing activities will kick in as we get closer to the actual game.

CPG Insider: With spots costing $7 million-plus this year, how do you calculate the risk and return? So much can go wrong. The game can be a ratings flop. Your spot could wind up in the wrong quarter or jammed in between two brilliant car ads that get all the buzz. Every year, a handful of ads get scorned as stinkers. For advertisers, the Super Bowl can be a crapshoot.

Rath: Yes, and brands have many different creative strategies. For us, the brief for Super Bowl 25 is the same as last year in that the brand and the product need to be the central inspiration point. With our "Flashdance" spot, we introduced Nerds Gummy, a new character, and that character was a metaphor for the product experience itself. We brought Gummy to life in a fun, loving way. We thought less about the celebrity cool factor or making a splashy impact and more about delivering the core of the brand and the product in a relevant way.

As I said, the success of that approach surprised us, but showed that we have to be true to ourselves and what we stand for. Characters are a beloved part of the brand, so they will always play a central part in how the brand comes to life. We are using them to deliver a full multisensorial experience. And by using Addison Rae, we found a way to connect with Gen Z that feels authentic.

CPG Insider: How will those insights translate into this year’s ad? And do you tell your team at Digitas, “This is what we want?” Or do they come to you first with their ideas?

Rath: We're still in the early stages, but our brief to the agency is broad: How can we use our characters to bring this multisensory experience to life? And they’ll bring us ideas for the next saga for these characters.

CPG Insider: The brand clearly has broad appeal beyond kids. But who is the target consumer?

Rath: Our core consumer is Gen Z. However, we've also seen that the brand overindexes with millennial households, especially those that have teens in the house. The growth in household penetration has primarily driven the brand's momentum. It's currently at 20%. But we know that Nerds appeals to broader demographics, too.

CPG Insider: Ferrara specializes in sugar candy, while parent Ferrero owns plenty of chocolate brands in the U.S., including Nutella, Kinder and Baby Ruth. Can you explain the difference between consumers who crave sugar candy, like Nerds or Skittles, and chocolate?

Rath: Most consumers stick to brands they're familiar with. Chocolate is an interesting category, and people go there for different reasons. We've learned that many consumers are looking for a mix of different textures. And we've seen that insight in the growth of Gummy Clusters -- people like that unique textural blend.