Walgreens has created a cult “peelable” candy due to the Tik Tok phenomenon.

TFD – As the editor of TheFoxDaily, we delve into Walgreens’ strategic triumph with peelable mango gummies, targeting Gen Z consumers and revitalizing business strategy.

It’s chewy, small, and squishy. Gen Zers are obsessed with it because of its adorable baby mango shape. It is too popular for Walgreens to stock.

An important victory for the struggling drugstore business is the peculiar “Gummy Mango” candies. Of its 8,700 US outlets, roughly 2,500 carried it when it debuted in the fall of last year. Naturally, TikTok caused a swift sell-out. Walgreens limited the amount of remaining inventory to one bag per consumer online.

The unanticipatedly popular product launches at a time when Walgreens is dealing with a number of unpleasant issues, including mounting debt, disgruntled employees, rivals gaining market share, store closures, and consumers spending less on unnecessary items. To the annoyance of patrons, it must also balance the need to keep commonplace things like shampoos and shaving cream locked away due to theft concerns. Any good news at all was desperately needed by Walgreens.

Thankfully, the mango-flavored confection complements the business’s long-term plan to strengthen its front-of-store divisions, according to Morningstar analyst Keonhee Kim.

The item in question is a $1.99 bag of sweets that are part of the popular gummy candy category. This candy is unique from other snacks and drinks in Walgreens’ lower-cost Nice! house brand since it can be peeled.

An explanation of its peculiarity in a video posted by TikToker @Trinhdoesthings in early January received an astounding 8.9 million views.

She purchases the candy packet in the video “after seeing it all over social media” at a Walgreens. She tears it open at her kitchen table and then peels off the outer skin of the mango-shaped gummy and pops the shiny smooth inner pulp into her mouth, proclaiming, “This is so fun.” She continues to eat the peel after that, praising its chewy texture.

Some TikTok videos explained how to enhance the flavor of the mango version by adding spice, or they compared the delicacy to the peelable gummy candy in peach and grape flavors from Japanese or Korean companies that are sold on Amazon.

Walgreens said that their mango gummies gained popularity on its own and didn’t require the help of any sponsored influencers. Additionally, it denied to provide the number of packets sold as well as the total amount of sales to date.

Seizing the opportunity

In a interview, Vice President of Walgreens-owned brands Marty Esarte noted, “The peelable candy is really fun because of its interactivity.” “Is the outer layer better than the inner gummy, or are they better together or separate?” is another debating issue it raises.

Esarte acknowledges that he was surprised by the squishy treat’s viral success. “We sold through nearly all of the product literally four or five days after we launched it,” he added. “We probably would have had more if we had anticipated that happening.”

The candy’s first concept came up in 2023 during a conversation between Esarte’s staff and a supplier to Walgreens.

“This peelable candy trend that emerged in Asia last year was noticed by one of our suppliers, with whom we have worked for more than 20 years, and they brought it to us as an opportunity,” stated Esarte.

The time coincided precisely with the most recent trends in sweets consumption. Gen Z and millennial consumers have been driving the non-chocolate market, which includes gummy candies, to unprecedented heights. This is according to the National Confectioners Association.

Sweet nostalgia

Younger consumers, particularly those in Generation Z, have a strong affinity for retro and vintage goods, and this tendency also extends to culinary items. The Food Institute, a trade journal, claims that Millennial and Generation Z consumers prefer fruit-flavored candy because that’s what they grew up eating.

In the US, the segment’s total sales reached $19.2 billion in 2023, up 12.1% in dollars from the previous year. Additionally, it represents about 30% of the US confectionery market.

A more significant problem surfaced last year when Esarte and his crew scrambled to replenish the mango gummies. Their requirement fell during the Chinese New Year, a period of time when all factory production in China is suspended for several weeks. Not everything was perfect.

“Whatever product was still available overseas we airfreighted it to get it into stores quickly,” Esarte said.

Walgreens is better equipped to make a bigger statement with the mango candy after weeks of hustling and scrambling. “We will have 8,000 stores carrying the candy by May after we bought a lot more of it,”

A new CEO and a fresh flavor

However, Esarte gave TFD a tip about the upcoming flavor. “Next up, we’re introducing a peelable banana gummy,” he declared. “We believe that adding banana, a popular flavor in the US and around the world, is a fantastic addition to the peelable gummy mix.”

The $1.99 bag of banana gummies will go on sale in 5,000 Walgreens locations in May. Orange and pineapple candies are also available at the store, but they’re not as enjoyable because you can’t peel them.

The candy is a welcome victory for Walgreens at a time when the company’s issues have been getting worse over the past 12 months and its stock has dropped 50% during that time, according to Morningstar analyst Kim, who focuses on the healthcare industry.

“Tim Wentworth took over as CEO, and as he takes over, he’s thinking about where future growth for Walgreens will come from and where are some areas they could cut costs,” Kim said. “There was a big leadership change,” she added.

One section is the drugstore’s front area, where goods under private labels such as candies and snacks are usually sold.

Kim stated, “That space is a really important piece of the business.” “There’s no denying that sector is more lucrative than the prescription distributing business’s rear end. For Walgreens, concentrating on that segment with its newest products will be essential.