Walgreens introduces a trending ‘peelable’ candy, riding the TikTok wave
Amid financial challenges and growing competition, Walgreens unveils a unique 'peelable' candy sensation. While grappling with various issues, the drugstore chain finds solace in a viral TikTok trend, offering a sweet escape from its burdens.
It's small, soft, and chewy, shaped like a cute baby mango that has become a huge hit among GenZers. Walgreens is struggling to keep it in stock.
For the struggling drugstore chain, the unique "Gummy Mango" candy has been a much-needed success. It made its debut last fall in around 2,500 out of its 8,700 stores in the US, and quickly sold out thanks to the viral trend on TikTok. To manage the high demand, Walgreens had to limit customers to only one bag per purchase online.
Walgreens has been dealing with a lot of challenges recently, from increasing debt to employee dissatisfaction and competition taking away market share. On top of that, the store closures and customers cutting back on non-essential purchases have added to the pressure. To make matters worse, they have had to start locking up everyday items like shampoos and shaving cream due to theft concerns, which has annoyed customers. In the midst of all this, the company was in desperate need of some positive news.
Luckily, the mango-flavored product that unexpectedly went viral has actually aligned with Walgreens' long-term strategy of strengthening its front-of-store departments. According to Morningstar analyst Keonhee Kim, this tasty treat has provided a much-needed boost for the company.
The product in question is a $1.99 bag of candy that falls under the popular category of gummy candies. What sets this candy apart is that it can actually be peeled.
A video posted in early January by TikToker @Trinhdoesthings showcasing this unique feature garnered an impressive 8.9 million views.
She spotted the candy on social media and decided to grab a pack from Walgreens. Sitting at her kitchen table, she eagerly opened the packet and revealed the mango-shaped gummy inside. Excitedly, she tried the smooth inner pulp and exclaimed, "This is so fun!" Not stopping there, she also tasted the chewy peel, impressed by its texture.
TAMPA, FLORIDA - NOVEMBER 27: Products are seen on a conveyor belt at an Amazon fulfillment center where they are being sorted and shipped out as same day orders during Cyber Monday at the Same-Day Delivery Facility Fulfillment Center on November 27, 2023 in Tampa, Florida. Dedicated to online shopping, Cyber Monday is one of Amazon's busiest days following Thanksgiving, marked by retailers providing substantial discounts and promotions. (Photo by Octavio Jones/Getty Images)
In Tampa, Florida on November 27, products are moving along a conveyor belt at an Amazon fulfillment center. This facility is focused on sorting and shipping out same-day orders during Cyber Monday, which is a major shopping day for online retailers like Amazon. Cyber Monday comes right after Thanksgiving and is known for the significant discounts and promotions offered by various retailers. The photo was taken at the Same-Day Delivery Facility Fulfillment Center in Tampa, Florida by Octavio Jones for Getty Images.
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Some TikTok videos have likened the mango gummies to popular peelable gummy candies in peach and grape flavors from Japanese or Korean brands found on Amazon. Others have shared tips on enhancing the flavor by adding spices to the mango version.
Walgreens clarified that they did not collaborate with any paid influencers to promote their mango gummies. The popularity of the treat grew naturally among customers. However, the company chose not to reveal the number of packets sold or the total sales figures at this time.
Catching the wave
According to Marty Esarte, vice president of Walgreens’ owned brands, what makes peelable candy fun is its interactivity. He mentioned in an interview with CNN that the outer layer and inner gummy of the candy spark a discussion: is one better than the other, or are they better together or separate?
Esarte didn't anticipate the squishy treat becoming a viral sensation. He mentioned, "Within just four to five days of its launch, we almost sold out of the product. If we had predicted this, we would have stocked up more."
The concept for the candy originated in 2023 during a conversation between Esarte's team and a supplier from Walgreens.
Esarte mentioned that one of our long-time suppliers, with whom we have had a partnership for over 20 years, discovered a new trend in peelable candy in Asia last year. They presented this trend to us as a potential opportunity.
Walgreens is quickly following up on the success of its mango gummy with a new peelable banana gummy candy.
Walgreens is quickly following up on the success of its mango gummy with a new peelable banana gummy candy.
Anthony Behar/Sipa
The timing was just right for the latest candy consumption trends. The non-chocolate category, which includes gummy candies, has seen a significant increase in popularity, especially among Gen Z and millennial consumers, as reported by the National Confectioners Association.
Sweet nostalgia
Younger consumers, particularly Gen Z, have a strong affinity for retro and vintage items, and this trend extends to their food choices as well. According to The Food Institute, Millennial and Gen Z shoppers have a preference for fruit-flavored gummies that they have been familiar with since childhood.
In the US, this segment experienced a 12.1% growth in dollar sales in 2023 compared to the previous year, reaching a total of $19.2 billion in sales. Additionally, it accounts for over 30% of all confectionery sales in the US.
A few employees and supporters gathered outside the main office of Walgreens, a drugstore chain, while pharmacists went on a three-day strike in Deerfield, Illinois, U.S. on November 1, 2023. 
Vincent Alban/Reuters
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Esarte and his team faced a bigger challenge while rushing to restock the mango gummies last year. Their need for restocking happened during Chinese New Year, when all factory production in China stops for a few weeks. This timing was far from ideal.
Esarte said they airfreighted any remaining product overseas to quickly stock stores. After weeks of rushing, Walgreens is now ready to introduce the mango gummies on a larger scale. They have bought a bigger quantity and plan to distribute it to 8,000 stores by May.
A new flavor is on the horizon, along with a new CEO. Esarte shared with CNN about the upcoming launch of a peelable banana gummy. He mentioned that banana is a popular flavor loved by many in the US and worldwide. Esarte believes that this new addition will be a hit among consumers who enjoy peelable gummy treats.
The banana gummy, which costs $1.99 per bag, will be available in 5,000 Walgreens stores starting in May. Currently, the retailer offers pineapple and orange gummies, but they are not as enjoyable since they cannot be peeled.
According to Morningstar analyst Kim, who specializes in the healthcare sector, the introduction of this candy is a positive development for Walgreens. This comes at a crucial time for the company, as it has faced mounting challenges over the past year, resulting in a 50% decrease in its stock value.
In this November 2022 photo, a pedestrian walks into a CVS Pharmacy in Washington, DC.
In this November 2022 photo, a pedestrian walks into a CVS Pharmacy in Washington, DC.
Brendan Smialowski/AFP/Getty Images
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Kim mentioned that there was a recent change in leadership at Walgreens, with the former CEO stepping down and the new CEO Tim Wentworth stepping in. Tim is now focusing on finding opportunities for future growth and areas where costs can be reduced within the company.
One section of the drugstore is known as the frontend, where you can find goodies like candy, snacks, and store-brand products.
Kim emphasized the significance of this area, stating, "The frontend plays a crucial role in the business. It is more profitable than the backend, which focuses on prescription dispensing. To stay competitive, Walgreens should prioritize this section and introduce new products."
Editor's P/S:
The unexpected success of Walgreens' Gummy Mango candy serves as a beacon of hope for the struggling drugstore chain. Amidst financial woes and operational challenges, the viral popularity of this unique treat has provided a much-needed boost. Walgreens' quick response to the high demand and its commitment to expanding its front-of-store departments align with its long-term growth strategy. The company's ability to leverage this success and introduce new innovative products, such as the upcoming peelable banana gummy, will be crucial in maintaining momentum and regaining market share.
Moreover, the candy's appeal to Gen Z consumers highlights the importance of catering to the preferences of younger generations. The trend towards retro and nostalgic food choices among Millennials and Gen Z presents opportunities for businesses to tap into a growing market. Walgreens' success with the Gummy Mango candy demonstrates the potential for companies to find success by embracing emerging trends and offering products that resonate with the evolving tastes of consumers.
