The Cluster Effect

Happy Friday,

How was your week?

Mine had a moment that reminded me just how much a surprising twist can capture attention – much like a candy that unexpectedly takes the market by storm (and makes you wonder why you didn't think of it first). It got me thinking about those brands that don't just play the game but change it entirely through sheer innovation.

We often talk about innovation in grand terms, associating it with tech giants (looking at you, Gemini and NotebookLM) or groundbreaking scientific discoveries. 

But in the world of brand building, what truly makes an innovation great? It's not just about being new or flashy (though a little sparkle never hurts). 

For a brand builder, great innovation typically has a few key ingredients:

• It Solves a Real Problem (or Unlocks a New Desire) | Think of consumer pain points, unmet needs, or even desires people didn't know they had until the innovation appeared.

• It's Authentic to the Brand | The innovation feels like a natural extension or evolution of the brand's core identity and purpose, not a random leap (because consumers can smell a copycat a mile away). It strengthens, rather than dilutes, what the brand stands for.

• It Creates a Deeper Connection | Great innovation often finds new ways to engage consumers, making them feel understood, delighted, or more connected to the brand's story and values (the warm fuzzies that lead to loyalty).

• It's Differentiating (and often, Defensible) |It sets the brand apart in a meaningful way and creates an advantage that can't be easily copied.

• It's Executed Brilliantly | An innovative idea is only as good as its execution. This means smart product development, insightful marketing, and a seamless customer experience.

When these elements come together, innovation isn't just a buzzword; it's a powerful engine for growth and brand love.

And speaking of unexpected engines for growth, one of the most compelling examples comes 

from the candy aisle (yes, really!). I'm talking about the phenomenon that is Nerds Gummy Clusters. (omg, they're soooo good, like where we you all my life, good)

This isn't just about a new sweet treat; it's a masterclass in understanding your audience, leveraging product innovation, and executing a marketing strategy that truly "hits all the marks" – and keeps hitting them.

Before 2020, Nerds was a legacy brand and then came the Clusters – a seemingly simple idea of bite-sized gummy balls covered with mini Nerds. The result? Gummy Clusters now accounts for roughly 85% of Nerds' total sales and shows incredible year-over-year growth. (Think $8M in 2020 to $736M last year). Not bad for a bunch of Nerds, eh?

So, what's the secret sauce to this sustainable success?

It's a potent mix of innovation at multiple levels:

• Product Reimagined: Taking an existing product, Nerds Rope , addressed its eating experience and "modernized it" into an "easier, straightforward, poppable eating experience." (They even created "Baby Nerds"for the clusters, baby Nerds!!).

• Riding the Wave (and Creating It) | They tapped into the shift to non-chocolate candy, especially with Gen Z's obsession with gummies (chewyyyy).

• Marketing That Sticks (and Spreads) | A heavy emphasis on digital and social platforms (because that's where the eyeballs are, people).

• Big Game, Big Impact: Their Super Bowl ads significantly boosted household penetration and sustained momentum.

• Organic Buzz & Influencer Power: Unsolicited praise, that's the kind of authentic street cred money often can't buy (earned media!).

• Target Audience Evolution: Smartly shifting focus from millennial households (who remembered original Nerds) to Gen Z (who were about to discover their new favourite).

• Resilience in R&D: Despite initial negative research where consumers "still didn't get it," the brand believed in the product's taste experience and "pushed ahead." (A classic "hold my beer" moment for brand conviction).

Lessons from the Nerds Playbook:

The Nerds Gummy Clusters story offers powerful lessons for any brand builder:

1. Authentic Product Innovation is Key | A unique, genuinely enjoyable product experience is the foundation.

2. Understand and Embrace Your Audience | Knowing their preferences (gummies!) and where to reach them (Youtube!) is crucial.

3. Create Shareable Moments | Generate buzz that people want to be a part of (and that doesn't feel forced).

4. Be Agile and Adapt | Evolve with your audience and the market (no decision is a decision).

5. Trust Your Gut (and Your Product) | Sometimes, belief in the tangible experience outweighs early doubts. (especially if those doubts do not come from your target audience).

The rise of Nerds Gummy Clusters shows that innovation is about fresh thinking, understanding human desires, and connecting in ways that resonate.

But the real takeaway? 

Launching an innovation is "easy"; getting it on shelves and seeing the first wave of the trial is just the start (the appetizer, if you will). The true measure of success, the real "golden ticket" for any brand, is achieving sustainable innovation. 

It's about creating something that people don't just try but love, buy again (and again and again), and tell their friends about, leading to continued growth year after year (and your CFO actually smiles).

Now, if you haven't tried them yet, run

See you next week!