In 2006, entrepreneur Andy Hampton bought a chocolate chip cookie company called Groub-Dings, or “GB” as it was known to its loyal followers. The business made thin, crispy cookies with additions like coconut, raisins, and M&M’s.
Hampton quickly rebranded the cookies and gave them his own famous twist: He added peanut butter chips! And he took the company national, opening up stores across America.
But now that brand has been swallowed by another company. Nestle acquired GB in August of last year for $310 million. Since then, Nestlé has discontinued both the original recipe and the name of the product.
Not only does this sound disastrously boring, but it also sounds very expensive. What are your thoughts about this article? Let us know what you think - comment below and be sure to subscribe to our YouTube channel to stay updated on all things money related!
I don't understand why companies need to buy other brands. It costs so much to start a business from scratch, investing lots of time and resources into creating a great product that people will want to purchase.
In May 2009, just over one year after launching his first cookie bar, CEO Joshua Chapman announced he was leaving his position as president at the company he co-founded to pursue other opportunities. At that time, he left with $5 million in savings.
He had been serving as chief operating officer since August 2007 when he took over for then-CEO Paul Johnson who resigned earlier that year due to health issues.
Since joining the company in 2005 as director of marketing, Josh quickly ascended up through the ranks to become CEO. He is credited with taking the company public and developing its current brand identity.
But all good things must come to an end, including a company that has given you your start in life. And while some might say it’s because you made too much money, or because you don’t care about people anymore, or because you are not passionate about what you do – none of those reasons hold true for us.
It’s more like you have big dreams and you realize that you can’t keep going down this path indefinitely. You know something else needs to be done, even if you aren’t quite sure what that thing is yet.
And so, you give yourself a deadline. You tell yourself you will do something new every week until you find something that makes you feel happy, productive, and confident. Then you make it a month, and then six months, and eventually a year.
In early 2009, just as the economy was starting to perk back up, popular chocolate chip cookie bar maker Famous Brands closed down its operations permanently. That is, it shut down for good without warning or explanation.
The company had been struggling since at least 2006 when business slowed down due to an economic recession. But things took a turn for the worse in 2008 when the company’s production line broke down, taking away one of its most important sources of income.
At that time, there were only two employees working at the headquarters; both were given notice they would be laid off soon. One employee received a severance package while the other was terminated immediately with no pay.
Since then, not much has changed at the former powerhouse company. Employees have tried their best to help get the word out about the now defunct brand, but so far nothing has worked. Many are even completely forgotten!
What happened to the money people earn from selling products? Why aren’t more people talking about the once famous chocolate chip cookies? It’s like everyone has collectively decided that the Famous name will never return.
In 2008, just as the economy was starting to perk back up, famous amos lost their CEO and founder. At that time, they had only one employee working in the main production facility in Glendale, California.
A few months later, he was laid off along with five other employees. This left the lone worker at the factory without pay for several weeks while he tried to find new employment.
During this period of downtime, he invested his savings into buying supplies to keep the business going. He also began creating and selling his own designs of chocolate chip cookies which now have his trademarked name — the Reesie cookie.
In early 2016, just as the new factory was being completed, business began to slow down at an alarming rate for the chocolate chip cookie brand. This is due to several reasons; one being that people grew tired of their cookies and snacks coming in boxes with plain white labels.
Another reason is that the price of raw materials such as cacao powder and sugar increased dramatically making it more expensive to make cookies.
Yet another reason is that famous amos lost its luster. People begin to realize that even though they may like your product, you are also buying up lots of supplies that contribute to destroying the environment and resources needed to make newer products.
This effect is called ‘sustainability’ where companies use less natural resources to make their goods and thus do not hurt the planet as much. Companies that practice sustainability will be considered socially conscious and worthy brands.
Many people now believe that famous amo is more concerned about profits than helping the world remain habitable for future generations.
In 2012, just as he was celebrating his 50th anniversary of starting his business, entrepreneur Andy Warner lost everything. That is, he broke up with his company that has since been picked up by another company.
He ran out of money to keep his business afloat and was forced to close down. He now works part time at an outdoor sports store while also running a barber shop side business.
Warner’s downfall began in 2008 when he decided to take advantage of a sale at Office Depot. While there, he saw some ceramic tiles for sale and they inspired him to start making his own designs.
Since he had already invested most of his savings into his house and car, he could not afford to buy all the supplies needed to make decorations so he instead made use of clay chips and pots from craft stores. These worked fine until he found a way to shape and design them!
His new designs were too good and people started asking about them so he soon got busy producing and marketing them. Before long, he was supplying enough products to create almost every kind of decoration you can think of!
They are now sold under several brands including Funky Findings, Uniquely You, and B-Lazy. Many have even received recognition and awards for their quality.
Andy Warner will be able to tell you himself though. When he first started selling them, no one wanted to buy because nobody knew who created them.
In early 2009, just as the economy was starting to perk up, an employee at the company’s Elkhart factory noticed something strange. At 9 A.M., his department received an unusually large shipment — of cookies!
The cookie production line had been shut down for months due to quality control issues, so what was happening now? This seemed like very odd behavior indeed!
A few days later, another employee found out why. When he arrived for work, he discovered that all of the break rooms were empty except one — the employees’ lunch room.
When he opened the door, however, he saw something even more bizarre…
All of the chairs in the lunchroom were pushed together with nothing underneath them. It looked like someone had broken into the room and cleared everything away because they planned to spend the day sitting on their feet!
As hard as it may be to believe, this is actually how most people eat when they are hungry. We usually walk around with our stomachs rumbling from not eating, but we make a habit of spending hours every day sitting down with a plate full of food. (This also happens if you run into a friend who wants to hang out after work.)
After working long hours, most people then go home and fall asleep right away, leaving their bodies without much time to re-hydrate. This can sometimes cause health problems or death if your body doesn’t get enough sleep.
In early 2009, just as the economy was starting to perk up, business analyst Rich Smith received some very bad news from his son’s favorite cookie brand.
His son loved these cookies so much that he would take them out of the package and either eat them or give them to other kids at school so they could taste them and ask for more.
One day however, when he asked where his Aunt Mandy’s house was, she told him it had been burned down along with all her belongings.
He didn't believe her at first because there were no signs of fire anywhere but then one night while watching TV, he saw an episode about a family who lost everything in a house fire. He became convinced that this happened to his cousin.
So he made his own batch of Amanda's Cookies and gave them to his classmates to try. Almost every kid wanted to have another one!
Their parents praised their creativity and asked if the children wouldn't want to share the recipe. A few weeks later, several people bought boxes of cookies online and emailed Smith asking how to order more.
Smith quickly realized that someone else must have invented the same recipe and posted it on line, which is why his new company was getting such huge exposure.
But now that his company has failed, he will need to find employment soon.
In 2001, celebrity chef and entrepreneur Amos Best founded his own cookie brand – Chocolate Chip Cookie Dough Balls with chocolate chips and cinnamon as the ingredients.
He marketed them by putting his signature on each one and having other brands make and market their own version of these balls. This style of marketing is called product branding or product endorsement.
But in 2017, he announced that his company had gone bankrupt and would be closing down within six months. He said this was because companies just wouldn’t buy enough products to keep him profitable.
Many people complained about how he spent lots of money advertising and promoting his cookies, but they never took off and were eventually forgotten.