Walgreens has found unexpected success with their “Gummy Mango” candy, which has become a viral sensation on TikTok. The candy, part of their Nice! house brand, is unique in that it is peelable and has a fun, interactive element to it. This has helped drive its popularity among Gen Z and millennial consumers who are looking for unique and trendy snack options. The candy’s success has come at a crucial time for Walgreens, which has been facing challenges such as mounting debt, employee unrest, and increased competition in the market.
The popularity of the mango gummies has led Walgreens to expand their line of peelable candies, with a new banana flavor set to launch in May. The company is also planning to increase distribution of the mango gummies to 8,000 stores by May. This expansion comes after a rush to restock the candy last year, which was complicated by the Chinese New Year shutdown of factory production in China. Despite these challenges, Walgreens is optimistic about the future success of their candy line and the positive impact it can have on their business.
The success of the peelable candy aligns with broader trends in the candy industry, where non-chocolate segments, including gummy candies, have seen significant growth driven by Gen Z and millennial consumers. These younger consumers have a preference for retro and vintage foods, including fruit-flavored gummies that remind them of their childhood. This has led to a 12.1% increase in dollar sales for the segment, reaching $19.2 billion in total sales in the US.
Walgreens’ strategy to focus on front-of-store departments, where candy and snacks are sold, has paid off with the success of the mango gummies. The company’s Vice President of owned brands Marty Esarte credits a supplier with bringing the idea for the peelable candy to their attention. The company did not initially expect the candy to become a viral hit, but its interactive nature and unique flavor have resonated with consumers. Walgreens is now looking to expand their offering with new flavors and continue to capitalize on the success of their candy line.
As Walgreens looks to the future, new CEO Tim Wentworth is focusing on areas for growth and cost-cutting within the company. The front-end of the drugstore, where the candy and snacks are sold, has been identified as a key area of focus for potential growth. The success of the mango gummies has shown the potential for new offerings in this space to drive profitability and engage customers. With the launch of new peelable candy flavors and expanded distribution, Walgreens is optimistic about the impact these products can have on their business as they navigate challenges and look for new opportunities for growth.