Next up is a new brand from a cookie Legend [Music] Aloha sharks my name is Wally Amos I'm Known as a cookie man yes you are wow oh Company is a cookie Kahuna and I am from Honolulu Hawaii asking for fifty Thousand dollars a chump change for you Guys in exchange for 20 percent [Music] I've been selling cookies for 40 years And for a long time I actually thought I Was selling cookies but it occurred to Me that I wasn't selling cookies I was selling happiness You you you guys you're not smiling I Mean Wonderful he looks anything but Wonderful I got something to make you smile don't Go away [Music] For the show s Allergic to cookies you know you guys Look the same Shocking isn't it this close to the Sharks let me give Lori hers does it Matter no it doesn't matter to me Kevin I think I'm a shortcut for you buddy let Me get Barbara's in mind give me mine You got yours Am I a legend thank you does that mean Y'all gonna give me some money no but
You are a legend gosh You're as tough as everybody said you Were I like them yeah you have a light Crunchy cookie it's good yeah I am the Wally Amos who started Famous Amos 40 Years ago you are a legend sir Oh God yes sir I was so very impressed Thank you thank you that's very gracious Of you I appreciate that I have a new Cookie business which is called the Cookie Kahuna I am no longer Affiliated The original company that I started 40 Years ago what happened to that company I came to cookies from Show Business Years ago I was an agent at William Morris I was the first African-American Asian at William Morris wow I booked Simon and Garfunkel The Supremes Marvin Gaye I did that for a long time I Started making cookies 1970 just to Share with friends and just to have Cookies whenever I wanted to but your Cookies were everywhere all over the World they were what went wrong was I'm A damn good promoter But I'm not a business guy and my focus Was not on how much money I was going to Make I just wanted to have a good time So what happened with the business yeah They're still available the company went Through five different owners over a Period of time really the time I got Down I'd been diluted and I had no
Equity left I had nothing left they're Used I believe your picture on the box My pictures the name Famous Amos yes They did they did they license that from You no they owned Famous Amos right out Tell us about the new business I started this oh maybe a little over a Year and a half ago we're online I've Got my own website and I sell cookies at Costco only in Hawaii what do you sell It for Wally how much does it cost hold On a sec I'm not a business guy but I Got my numbers here We like our numbers yeah you love your Number you love your numbers like I love My cookies Um Costco buys them for 7.89 for a one Pound bag how much does it cost you to Make them and it costs 5.25 is it 420 For ingredients what were your sales for The last year 36 215.97 for this year so far so can I see The numbers Wally do you mind not at all Don't ask me any questions So Wally the margin you're making once You take in packaging shipping and Handling is less than twenty percent That's bad it's a food business it's it That's not enough margin to sustain a Business you've got to get your costs Down what the numbers tell me is your Packaging and shipping costs are well Over 40 percent of the whole costs Including the baked goods no no what
Just the packaging Wally that's worse Than I thought Wally after what you've Been through uh starting the business Losing the business why would you start All over again Because I love cookies and I think that I can build a business out of this Cookie and replicate what I did with Famous Amos years ago I'm convinced I Can one thing you bring that very few People that have ever come on the tank Have had is such a huge brand associated With the food category but we don't have The full access of your image and your Name and so it has all the challenges Associated with launching a new brand It's not investable not for me anyways Okay I'm sorry Wally I'm out that's cool No problem thank you thank you I'm a product person I've been in the Product arena for 18 years and I've Worked with a lot of entrepreneurs and One of the things that's the hardest Conversation I ever have to have with Them is about if they find that Something isn't working To go to something else And I'm sure because you have that Spirit you're a promoter you have so Much inside of you that there are other Things that you could be doing with as Much passion I understand I understand What you're saying because of that Struggle I have to be out
I understand that I accept all of that Sure everybody knows your cookie you're You're a solid entrepreneur it's good to Love the product it's really important To love the business your cost is too High you have limited distribution I'm Sorry I'm out best of luck that's cool Yeah accept that thank you man yeah Thank you I have a similar story to you If not for a lucky break I would have Had the exact same thing happen in my Business I was in business about 10 Years and I had a terrible turn in the Market and lucky for me just when I Thought I might go out of business Merrill Lynch came in and they offered Me fifty thousand dollars They not only wanted me to sign away Corcoran Group which was my brand but They wanted me to sign away Barbara Corcoran For me where I was seated then right Fifty thousand dollars was the Equivalent of having God himself come Down and kiss me I can relate and at the 11th Hour they changed their mind and Didn't buy it and that same business I Sold for 66 million dollars 15 years Later How lucky for me That they changed their mind yeah you Know the universe is filled with Surprises it's true but here's what went Awry here when you sold your business
You not only sold the name but you sold Your personality along with it without That the business has very little value Barbara what are you going to do she's Not she's going to pass yeah I'm going To pass but with great respect Well you're a Legend Um I've learned from your story the bet The good and the bad and it taught me a Lot my problem is I'm already in the Cookie business so it'd be a conflict For me no question so I'm out but thank You Stay tuned you'll watch me selling I Have no doubt no doubt come on Wally you Gotta go aloha Guys I know that this was just another step In my journey Kahuna is going to be more famous Than Famous Amos so you guys know the Whole story of Wally it's it's an Amazing lesson so business was great he Was the first like high-end cookie that Got distributed in grocery stores and Then that brought in some competition And so business started to decline and So he went out and got an investor but He still you know said he said okay just Give me the money that'll fix it all it Did it and every time he lost equity and Burned through the cash he raised more Money so he kept on getting diluted Until it was nothing what I did love
About him is he was 80 years old Yesterday he still had to drive how many Of us he had a personality yeah you look Great for 80 Robert come on Before you go don't forget to subscribe To the Shark Tank Youtube channel and Click on that notification Bell to keep Up with everything that's bubbling in The tank
