The snack maker is revamping its nearly 50-year-old cookie, tweaking the ingredients, redesigning the packaging, and reducing the price.
After purchasing several snacking brands from Kellogg for $1.3 billion in 2019, Ferrero found itself grappling with the declining fortunes of Famous Amos, a chocolate chip cookie brand nearly half a century old.
The brand was suffering from declining sales, stagnant household penetration, and unchanging repeat purchase rates. Moreover, Famous Amos hadn’t received any advertising attention for over a decade. “Because of that, we needed to do something,” said Rachna Patel, Vice President of Marketing at Ferrero, in an interview.
Research indicated that consumers, especially millennials, were shifting away from dry-packaged cookies towards those in bakery or deli sections, or from specialty stores perceived as fresher and containing better ingredients. To address this, Ferrero sought to premiumize Famous Amos by increasing the amount of chocolate and using Belgian chocolate, which was well-received in taste tests. They also introduced new varieties under the “Wonders From the World” line, such as Philippine Coconut and White Chocolate Chips, Mediterranean Hazelnut and Chocolate Chips, and British Salted Caramel and Chocolate Chips, catering to millennials’ preference for international flavours.
Additionally, Famous Amos was repositioned in grocery stores to compete with premium brands like Tate’s and Pepperidge Farm instead of mainstream brands like Oreo and Keebler.
Despite these changes, the brand saw repeat purchase rates decline after an initial surge, and sales struggled to surpass those of the older recipe. Ferrero discovered that while many enjoyed the revamped product, its price—$7.99 for a 7-ounce bag at Walgreens—was more than consumers were willing to pay. Moreover, social media was abuzz with calls for the return of the original flavour.
Faced with these challenges, Ferrero realized they needed to act quickly to protect the brand’s long-term value. “We went back to the drawing board and started again from scratch,” Patel said.
Ferrero is now returning to the original Famous Amos recipe, redesigning the packaging, and lowering the price to regain consumer trust and revitalize the brand.