Episode 26: 🐣 Peeps: A Backroom Marshmallow Mystery
Release Date: April 8, 2025
Hosts: Nick Martell and Jack Crivici-Kramer
Podcast: The Best Idea Yet by Wondery
Introduction: The Sweet Enigma of Peeps
In this captivating episode, hosts Nick Martell and Jack Crivici-Kramer unravel the intriguing history of Peeps—the beloved marshmallow treat synonymous with Easter. From its humble beginnings in a Pennsylvania backroom to its status as a cultural icon, the story of Peeps is a testament to innovation, strategic marketing, and enduring legacy.
Origins of the Rada Candy Company
The narrative begins on Church Street in Lancaster, Pennsylvania, a sweet-smelling avenue home to the Lancaster Caramel Company founded by Milton Hershey. Amidst this confectionery hub, the Rada Candy Company emerges, founded by Roscoe Rada, a Michigan native who apprenticed with Detroit chocolatiers before establishing his own business.
Nick Martell [05:05]: "The Pennsylvania Dutch, by the way, shouldn't be called Dutch at all. They are actually ethnic Germans who have settled in Lancaster county for over 200 years."
Despite Rivals Like Hershey
Roscoe Rada initially struggled to compete with the dominant Hershey brand. Undeterred, he pivoted to capitalize on the Easter market, leveraging the local Pennsylvania Dutch community's deep-rooted Easter traditions. Rada began crafting candies shaped like Easter symbols—bunnies, eggs, and chicks—drawing from German legends and ancient egg-decorating traditions.
The Birth of the Jelly Bean and Rada’s Niche Market
In the early 20th century, Roscoe Rada perfected the jelly bean, transforming it into a seasonal favorite. By marketing them as "jelly eggs" specifically for Easter, Rada effectively cornered the market, making jelly beans a staple of the holiday.
Jack Crivici Kramer [10:13]: "And Radha, the foremost Easter marketer, starts calling them jelly eggs. Jelly eggs, you know, for Easter."
Rada's strategic focus on a single holiday allowed the company to thrive, setting the stage for future innovations despite Roscoe's passing in 1941.
Acquisition by Just Born: A Strategic Union
When Roscoe Rada died, his family sought to sell the business. Just Born, a burgeoning candy company founded by Ukrainian immigrant Sam Bourne, acquired Rada Candy. This acquisition was pivotal, linking two influential candy makers and setting the foundation for Peeps' mass production.
Nick Martell [11:06]: "But once Roscoe dies, sadly, the Rada family, they don't want to continue on with the business."
Sam Bourne, a pioneer in candy innovation, saw potential in Rada's unique products. Under the leadership of his son, Bob Bourne, Just Born embarked on a mission to revolutionize the production of Rada's marshmallow chicks.
The Backroom Mystery: Handcrafted Origins of Peeps
Upon acquiring Rada Candy, Bob Bourne discovered a mysterious backroom where artisanal marshmallow chicks were painstakingly handcrafted by dozens of immigrant women. Each batch took 27 hours to create, revealing a labor-intensive process that seemed unsustainable for mass production.
Nick Martell [18:38]: "How long do they have to sit like that? You ask a worker. How much time does this take? The woman squints at you. She speaks German like most of the immigrant workers here. But there's no mistaking her answer. 27 hours."
This discovery sparked a blend of admiration and curiosity. The meticulously crafted marshmallow chicks, with their tiny wings and hand-painted eyes, were the precursors to modern Peeps.
Innovation and Mass Production: Bob Bourne’s Solution
Recognizing the commercial potential of these marshmallow chicks, Bob Bourne tackled the challenge of scaling production. Over nine months, he engineered the "Depositor," a machine that slashed production time from 27 hours to six minutes—a 99% reduction. This breakthrough enabled Just Born to produce Peeps on a grand scale, making them an Easter staple.
Jack Crivici Kramer [21:20]: "The depositor may be bulky, but this thing moves fast. It cuts the time it takes to manufacture peeps from 27 hours to six minutes. That's a 99% drop."
The introduction of machine-made Peeps transformed them from exclusive, handcrafted items to accessible treats enjoyed by millions worldwide. By 1953, Peeps were firmly established in Easter baskets across America.
Seasonality and Strategic Marketing
Peeps' success is deeply rooted in their seasonal appeal. Just Born masterfully leveraged seasonality, ensuring that Peeps remained a beloved tradition each spring. However, the company didn't stop at Easter. By the 1960s, Just Born introduced Peeps shaped for other holidays—Christmas trees, Valentine's hearts, and even Halloween-themed "witchmallows."
Nick Martell [24:12]: "As Jack and I like to say, seasonality it sells, baby. When a product becomes part of an annual ritual, that is a profit puppy."
This diversification allowed Peeps to maintain relevance year-round while cementing their association with Easter. Approximately 70% of sales occur during the Easter season, with the remaining 30% spread across other holidays.
Controversy and the Rada Family's Disapproval
Despite mass production success, the Rada family harbored resentment towards the commercialization of their original Peeps. They believed that the handcrafted quality and personal touch were lost in the machine-made versions, leading to their disapproval of the "Rada" name being associated with Peeps.
Nick Martell [31:14]: "Which is the big question. We still have an answer, Jack. Why don't they want the credit?"
This controversy highlights the tension between maintaining artisanal integrity and achieving mass-market appeal—a common dilemma in the evolution of traditional products.
Peeps in the Digital Age: Viral Craze and Chaos Marketing
With the advent of the internet, Peeps found new avenues for popularity. Viral trends like "Peep Jousting" on YouTube and TikTok transformed Peeps into a social media phenomenon. Just Born capitalized on this by engaging in "chaos marketing," creating unexpected collaborations with diverse brands such as Oreo, Pepsi, Crocs, and even dental care products like Oragel.
Jack Crivici Kramer [36:03]: "Peeps' licensing program generated $100 million in US retail sales in the spring of 2022 alone."
These provocative pairings not only kept Peeps in the public eye but also drove substantial sales through limited-time offers and surprise collaborations.
Sustainability and Production Efficiency
Interestingly, Just Born maintains a commendable sustainability record. Their Bethlehem factory boasts a 98% recycling rate and is entirely landfill-free, making it one of the most environmentally friendly factories among similar manufacturers.
Nick Martell [40:07]: "Peeps are planet-friendly. Their factory in Bethlehem has a 98% recycling rate and is landfill free."
This commitment to sustainability complements their efficient production processes, ensuring that Peeps remain a responsible and beloved product.
Legacy and Longevity: A Family Business Triumph
Just Born remains a family-owned enterprise, successfully passing leadership through three generations—a rare achievement in the family business world. From Sam Bourne to Bob Bourne and now to Ross Bourne, the company's dedication to innovation and quality has ensured its enduring success.
Jack Crivici Kramer [26:39]: "When company founder Sam Bourne dies in 1959, his son Bob takes over as president. He'll stay in charge until the 90s and then pass the torch to his son Ross."
This multi-generational stewardship has preserved the company's vision while adapting to changing markets and consumer tastes.
Conclusion: Peeps as a Symbolic and Enduring Icon
Peeps have transcended their status as mere candy, becoming symbols of spring, rebirth, and festive celebration. Their ability to evoke strong emotions—both love and disdain—ensures their place in the cultural zeitgeist. As symbols gain longevity, Peeps' strategic innovations and marketing prowess have solidified their legacy as one of the most viral and beloved products of all time.
Nick Martell [26:09]: "Peeps have reached peak seasonality. They're more than sugar. They're a symbol. And products that are symbols have longevity. Once they're here, they're here to stay."
Key Takeaways
- Strategic Seasonality: Focusing on specific holidays can drive substantial sales and create enduring traditions.
- Innovation in Production: Automating labor-intensive processes can scale artisanal products for mass consumption without compromising essential qualities.
- Embracing Controversy: Leveraging both positive and negative sentiments can generate buzz and maintain public interest.
- Adaptive Marketing: Collaborations with diverse brands and harnessing viral trends can keep a product relevant in the digital age.
- Sustainability Matters: Maintaining environmentally friendly practices enhances brand reputation and appeals to conscientious consumers.
Notable Quotes
- Nick Martell [22:31]: "Peeps are one of the rare instant hits of business."
- Jack Crivici Kramer [28:39]: "With millions of views like lip sync challenges or Mr. Beast, Peeps owes their success to the web."
- Nick Martell [36:55]: "And it's part of a whole new strategy of chaos marketing that we're seeing to generate attention in the attention economy."
For those intrigued by Peeps' fascinating journey from a hand-squeezed marshmallow chick to a global Easter staple, this episode delivers an in-depth exploration of product evolution, family business dynamics, and the power of strategic marketing.