Krispy Kreme is on the move again. This time, it’s not about the doughnuts; it’s about their late-night companion, Insomnia Cookies. Krispy is looking to sell its majority stake in Insomnia Cookies. Here’s the story in the land of sweet treats.
A Shift in Focus
Krispy Kreme, the iconic doughnut maker, is eyeing some strategic changes. They’re considering various options, including a full-cash sale of their majority share in Insomnia Cookies. Why? It’s all about getting back to their doughnut roots.
Back in 2018, Krispy Kreme took the majority slice of Insomnia Cookies. The deal got the backing of JAB Holding, a European investment firm. This acquisition clocked in at less than $500 million, according to sources. But times change, and now Krispy is rethinking this cookie-doughnut combo.
Krispy Kreme CEO Mike Tattersfield noted that the partnership with Insomnia Cookies was all about boosting e-commerce, digital capabilities, and helping the cookie chain spread its wings both in the U.S. and internationally. Mission accomplished. Now, it’s time for the next chapter.
Krispy Kreme’s Second Go-Round
Krispy Kreme made a sweet return to the public market in 2021. The implied value? A whopping $2.7 billion. This followed their initial public offering back in 2000, but the company went private again in 2016 when JAB Holding took the reins.
Late-Night Cookies Rising
Insomnia Cookies, founded in 2003 by Seth Berkowitz, a student at the University of Pennsylvania, is known for its cookies that satisfy cravings well into the early morning hours. They’re often strategically located near college campuses, providing students with a sugar rush during their late-night study sessions. The chain has had quite the growth spurt, with revenue tripling since 2017, according to Krispy Kreme. In 2018, they had around 135 locations; now, they’re at 250 and counting.
The Sweet Farewell
Seth Berkowitz, the CEO of Insomnia Cookies, expressed his gratitude for the partnership with Krispy Kreme during this period of incredible growth. As Krispy takes this strategic step, it marks the end of an era of sweet collaboration.
So, while the Krispy Kreme doughnuts will keep rolling, the future of Insomnia Cookies is poised for a fresh batch of possibilities.