In 2019, Ferrero, the maker of Nutella, invested $1.3 billion to acquire several snack brands from Kellogg, including the nearly 50-year-old cookie brand Famous Amos. However, Famous Amos was facing significant challenges: its sales were declining, household penetration remained stagnant, and repeat purchases had plateaued. The brand had not engaged in advertising for over a decade. “We knew we had to take action,” recalled Rachna Patel, Ferrero’s vice president of marketing, in an interview.
Market research indicated that consumers, particularly millennials, were shifting away from dry packaged products towards cookies found in bakeries, delis, or specialty stores, which were perceived as fresher and made with better ingredients. To rejuvenate Famous Amos, Ferrero decided to enhance the brand’s premium appeal by increasing the chocolate content to make it the primary ingredient and incorporating Belgian chocolate. The revamped cookie, launched in 2021, performed better than the original in taste tests.
Ferrero also introduced new cookie varieties under the Famous Amos brand, including Philippine Coconut and White Chocolate Chips, Mediterranean Hazelnut and Chocolate Chips, and British Salted Caramel and Chocolate Chips, as part of its Wonders From the World line. These flavors were designed to cater to millennials’ diverse palates. The placement of Famous Amos in grocery stores was also revised; it transitioned from competing with brands like Oreo and Keebler to standing alongside premium brands such as Tate’s and Pepperidge Farm.
Despite these enhancements, Ferrero noticed that repeat purchase rates “tapered off” after an initial spike, and sales struggled to surpass those of the older recipe. Patel explained that although many enjoyed the new product, its price point was higher than what consumers were willing to pay. For instance, a 7-ounce bag of Famous Amos chocolate chip cookies retailed for $7.99 at Walgreens. Some consumers even expressed their desire for the original flavor on social media.
Recognizing the need for further action to protect the brand’s long-term equity, Ferrero returned to the drawing board. The company decided to phase out its Wonders From the World line this year and reverted to the original chocolate chip cookie recipe. They also introduced a new sealable, stand-up bag to meet shopper demands for freshness. Additionally, Ferrero increased the cookie quantity from 7 ounces to 9 ounces and reduced the price to $4.99, moves that enhanced perceived value and differentiated it from pricier options. The product’s placement in stores was also adjusted once again, returning it alongside Oreo and other everyday cookies.
The updated Famous Amos cookie began shipping last November, and the changes have resonated with consumers. Since the relaunch, repeat purchase rates have increased by 5%, with sales at some retailers matching or exceeding their levels when Ferrero acquired the brand five years ago. “It’s performing exceptionally well,” Patel noted.
However, the missteps have offered Ferrero valuable lessons. “There were elements that needed improvement with Famous Amos,” Patel stated, highlighting the company’s previous experience in enhancing other brands like Butterfinger. “We opted to refine the product rather than invest in a brand campaign, which might have sufficed.”
Now that Ferrero has successfully revitalized Famous Amos, the company is cautiously looking towards the brand’s future. They plan to launch a marketing campaign early next year that emphasizes the cookie’s authenticity, history, and homemade recipe. New product launches are also on the horizon.
Depending on the brand’s performance in 2024, Ferrero may discuss the possibility of introducing another Famous Amos cookie or two next year. If the core chocolate chip product requires more time to solidify its success, Ferrero may choose to wait an additional year. While Patel refrained from divulging specific upcoming innovations, she mentioned that many quick-service restaurants offer chocolate chip cookies alongside oatmeal, sugar, and peanut butter varieties—along with options such as calcium citrate and magnesium glycinate for added health benefits.
“We want to take a measured approach. It’s about progressing step by step,” Patel concluded.