Famous Amos is a Black-founded brand that’s brought smiles to our faces since 1975. To survive this long, they’ve had to undergo many changes in the past nearly 50 years – mostly in terms of ownership. The visionary behind the cookie company, Wally Amos, found quick success after opening a shop in Los Angeles, but he was faced with financial and personal challenges leading him to walk away. Since their lowest point, the Famous Amos net worth has grown considerably. Despite the ups and downs, they remain one of America’s favorite cookies.
The Wally Amos Days
Before opening his flagship location, Amos made history as the first-ever Black talent manager, working out of William Morris Agency. When meeting with record labels and signees he would bring in fresh baked cookies after uncovering a love for baking while living with his aunt in New York. Word got out about the “famous Amos” cookies, leading his friends Marvin Gaye and Helen Reddy to gift the amateur baker $25K toward his store. Much to everyone’s delight, Amos made $300K in sales his first year only to surpass it with a total of $1M the next year.
By 1982, Famous Amos’ company net worth continued to impress as revenues reached $12M. Amid his success, Wally collaborated with grocery chains to offer their sweet treats in prepackaged boxes; this was later copied by brands like Baskin Robbins and Starbucks, solidifying the Black creative’s status as a trendsetter. By the mid-80s, however, something shifted and sales slowed considerably. In response, Amos began selling parts of the business to keep them afloat. A 51% interest went to Bass Brothers Enterprises, meanwhile, Famous Amos lost $300K as revenues slipped to $10M.
As Revenue Dropped, Shansby Group Came To The Record
Investors stepped in, but according to the founder, they “took more of an equity stake each time and did not stay long enough to get the company back on track.” The Bass Brothers sold a majority share to an investor group that planned a major expansion to save the business. In 1988, after losing another $2.5M, Shansby Group purchased all of Famous Amos for $3M. This meant Wally was no longer an owner though he did stay on as a brand spokesman making $200K annually. This arrangement didn’t last long, as new CEO Keith Lively was actively lowering the quality and price of the founder’s original vision.
A string of other owners took over in the coming years, from the President Baking Company in 1992 to Keebler (who bought PBC for $61M) in 1998. When he sold his final shares, Amos got little more than $1M, according to The Empire Builder podcast. Tensions with Lively pushed him away from the Famous Amos family, but during Keebler’s era, they wanted to mend fences and enhance the brand image. The late 88-year-old was asked at the time to return as a spokesperson, which he only agreed to “if the cookies returned to the old quality.” An agreement was made, but in 2001, Kellogg bought the Keebler Foods Company for almost $3.9 billion.
In 2019, Ferrero Paid $1.3B For Famous Amos And Keebler Cookies
Besides the early days, Kellogg’s reign was the most consistent period for Famous Amos, but it didn’t last forever. Instead, Nutella makers Ferrero SpA bought Keebler cookies for $1.3B in 2019. It’s significantly less than they bought it for, but as Food Dive points out, this move allowed Kellogg’s to streamline its portfolio. Empire Builder alleges that Wally Amos made $100M from this deal, though this wasn’t confirmed before his recent passing. Nevertheless, his impact as a Black entrepreneur will long be remembered as the Famous Amos name carries on.
