Krispy Kreme announced it is exploring strategic scenarios for Insomnia Cookies, which may include selling the company. The move will allow the company to focus on its core business in the donut market. Krispy Kreme acquired a majority stake in Insomnia Cookies in 2018 and should earn approximately USD 230 million in revenues in fiscal year 2023.
“We acquired a majority stake in Insomnia Cookies to build our e-commerce and digital capability as well as assist Insomnia’s U.S. and International expansion. Both efforts have been successful and it’s time for the next strategic step for both companies,” said Mike Tattersfield, Krispy Kreme CEO.
“Krispy Kreme has expanded rapidly through our capital light omni-channel model, and the brand is now in 37 countries selling fresh doughnuts through nearly 13,000 points of access daily,” continued Tattersfield. “Looking ahead, our goal is to expand to more than 75,000 points both by entering 3-5 new countries each year and developing new channels like quick service restaurants.”
Insomnia Cookies, the cookie brand known for serving warm cookies all day and late into the night, has rapidly grown since the 2018 acquisition, operating in three countries with over 250 bakeries. 45% of its revenue is generated digitally.
“It has been an honor to partner with Krispy Kreme in an unprecedented chapter of growth for Insomnia Cookies,” said Founder and Insomnia CEO Seth Berkowitz. “As we enter our 20th year of delivering warm, delicious cookies, we are now a sizeable multi-channel enterprise but still have a huge runway ahead in the attractive USD 700 billion indulgence industry (Euromonitor), and I look forward to leading our Insomniacs in our next phase of significant domestic and global expansion.”
Photo: Insomnia Cookies social media