Krispy Kreme, Inc. (‘Krispy Kreme’), together with its subsidiaries, operates through an omni-channel business model to produce doughnuts and deliver fresh doughnut experiences for Doughnut Shops, DFD Doors, and digital channels, expanding consumer access to the Krispy Kreme brand.
The company’s iconic Original Glazed doughnut is recognized for its fresh, hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme has developed a broad consumer base globally and currently operates in 40 count...
Krispy Kreme, Inc. (‘Krispy Kreme’), together with its subsidiaries, operates through an omni-channel business model to produce doughnuts and deliver fresh doughnut experiences for Doughnut Shops, DFD Doors, and digital channels, expanding consumer access to the Krispy Kreme brand.
The company’s iconic Original Glazed doughnut is recognized for its fresh, hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme has developed a broad consumer base globally and currently operates in 40 countries through its unique network of shops (‘Doughnut Shops’), partnerships with leading retailers, and a rapidly growing digital and delivery business.
The company is an omni-channel business with 17,557 points of access globally (the company’s ‘Global Points of Access’, and when referring to points of access in a particular region or segment, its ‘Points of Access’), creating awesome fresh doughnut experiences via its Hot Light Theater and Fresh Shops, Delivered Fresh Daily (‘DFD’) branded cabinets and merchandising units within high-traffic grocery and convenience stores, quick service or fast casual restaurants (‘QSR’), club memberships, and drug stores (‘DFD Doors’), and digital channels. The company has a capital-efficient Hub and Spoke model, which leverages its Doughnut Factories and Hot Light Theater Shops’ production capabilities (together, its ‘Hubs’) to deliver fresh doughnuts daily to local Fresh Shops, Carts, Food Trucks, and DFD Doors (together, its ‘Spokes’), and through digital channels.
The company’s business model focuses on fresh daily premium quality doughnuts produced by the capital-efficient Hub and Spoke model, and primarily sold via company-controlled Points of Access in the U.S., and with a mix of company-controlled and franchise Points of Access internationally. In addition to its core offerings, such as the Original Glazed doughnut, the company also focuses on limited time offerings (‘LTOs’ or ‘specialty doughnuts’) and seasonal activations to generate buzz for its brand.
The company provides authentic indulgent experiences, delivering joy through high-quality doughnuts made from its own proprietary formulations. The company utilizes strict quality standards and uniform production systems to foster consumer interaction with Krispy Kreme that is consistent with its brand promise, no matter where in the world the consumer experiences it.
The company utilizes seasonal innovations, alongside the expansion of its core product offerings, to inspire consumer wonder and keep its consumers engaged with the brand and its products. The company’s sweet treat assortment begins with its iconic Original Glazed doughnut inspired by its founder’s classic yeast-based recipe, which serves as the canvas for its product innovation and ideation. Using the Original Glazed doughnut as its foundation, the company has expanded its offerings to feature everyday classic items, such as its flavor glazes, ‘doughnut dots’, and ‘minis’, which lend themselves well to gifting occasions, such as birthdays and school activities. The company’s seasonal activations create unique assortments centered on holidays and events, with Valentine’s Day, St. Patrick’s Day, Easter, the Fourth of July, Halloween, and Christmas, all examples of holidays for which the company routinely innovates. The company strategically launches offerings tied to these historic moments to gain mind share, grow brand love, and help drive sales.
Segments
The company conducts its business through the following three reported segments:
U.S.: Includes all Krispy Kreme Company-owned operations in the U.S., and Insomnia Cookies Bakeries globally through the date of deconsolidation;
International: Includes all Krispy Kreme Company-owned operations in the U.K., Ireland, Australia, New Zealand, Mexico, Canada, and Japan; and
Market Development: Includes franchise operations across the globe.
Growth Strategy
The company has made investments in its brand, its people, and its infrastructure. Across the company’s global organization, the company has built a team of talented and highly engaged Krispy Kremers. The company continues to take increased control of the U.S. operations to better manage and streamline the execution of its omni-channel strategy, including accelerating growth across its Doughnut Shops, DFD, and digital channels. Globally, the company has developed an operating model that sets the foundation for continued expansion in both existing markets, and new geographies primarily via international franchisees.
The company’s strategies are to drive consumer relevance, expand availability, increase Hub and Spoke efficiency, and inspire engagement.
Marketing and Innovation
The company’s marketing strategy is as unique and innovative as its brand. Krispy Kreme’s marketing strategy is to participate in culture through ‘Acts of Joy’, deliver new product experiences that align with seasonal and trending consumer and societal interests, and create positive connections through simple, frequent, brand-focused offerings that encourage shared experiences.
The company’s core product offering, supplemented by specialty doughnuts, seasonal activations, and permanent innovations, are used to create consumer wonder and are an essential ingredient in keeping its consumers engaged with the brand and the products. The company’s specialty doughnuts are anticipated by consumers and the media alike and generate significant social sharing amongst its fans and media coverage. The impact of limited time seasonal offerings goes beyond the sales of the innovations themselves; they drive traffic and create additional sales of its core product offering.
The company has a brand presence across both emerging and well-established social media platforms, including Facebook, Instagram, X, YouTube, and TikTok. These channels enable the company to engage with its consumers on a personal level, while spreading the global brand of Krispy Kreme, including communicating promotional activity, featured products, new shop openings, and highlighting core equities of the brand. Social media allows precise geo-targeting around the company’s shops and effective targeting of consumers likely to be interested in its messages.
Supply Chain
The reliability and continuity of the company’s supply chain are critical to the seamless operation of its shops in the U.S. and Canada. The company has established an exclusive distribution partnership with BakeMark USA LLC (‘BakeMark’), which grants the exclusive rights to BakeMark to distribute ingredients, packaging, and supplies to both company-owned and franchise shops in all regions of the U.S. other than New York City, and Canada. In the event that BakeMark encounters economic or operational challenges, it could potentially lead to disruptions within its supply chain in the U.S. and Canada.
Intellectual Property
The company’s Doughnut Shops are operated under the Krispy Kreme trademark, and the company uses many federally and internationally registered trademarks and service marks, including Original Glazed, Hot Krispy Kreme Original Glazed Now, and the logos associated with these marks. The company has registered various trademarks in over 65 other countries, and it generally licenses the use of these trademarks to its franchisees for the operation of their Doughnut Shops. The company has also licensed its marks for other consumer goods.
Seasonality
The company’s sales peak at various times throughout the year due to certain promotional events and holiday celebrations. Additionally, the company’s hot beverage sales generally increase during the fall and winter months, while its iced beverage sales generally increase during the spring and summer months.
History
The company was founded in 1937. It was incorporated in 2012. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in 2021.