Coffee Company Buys Krispy Kreme For One Billion Dollars

Coffee Company Buys Krispy Kreme For One Billion Dollars

Delectable doughnut company Krispy Kreme is being acquired by US coffee chain JAB for $US1.35 billion. The merger means Krispy Kreme will be privately held.

“For nearly 80 years, our iconic brand has been touching and enhancing lives through the joy that is Krispy Kreme,” said Jim Morgan, chairman of the board of directors of Krispy Kreme, in a statement.

“This transaction puts us in the best possible position to continue to spread that joy to a growing number of people around the world while delivering significant value to Krispy Kreme shareholders. I am confident the JAB team is the right partner with whom to continue building upon our incredible legacy.”

Krispy Kreme’s CEO Tony Thompson said the experience from JAB makes them an ideal partner to grow the doughnut brand around the world. The Krispy Kreme brand has been somewhat of a posterchild for word-of-mouth marketing. While it’s had its ups and downs – having to apologise for an accidental KKK stunt a year ago – the brand is so well-loved by consumers AdAge in the States ran an expose on the doughnut brand and the emotional attachment doughnut lovers have with the company.

In Australia, the brand has been busy as well. It recently launched a range of American Classics as a new digital initiative – each doughnut had its own tune attached which consumers could listen to via Spotify. Too, while it was an April Fool’s joke, the lickable ads and 3D printer had some wishing they were real things.

Thompson said the brand will continue to stay focused on its long-term strategy, and continue to deliver the same sweet treats many love.

“We look forward to working with JAB to continue bringing the joy that is Krispy Kreme to a growing number of customers. Together with our talented team and our passionate franchisees, we will continue to build on the Krispy Kreme culture, values and commitment to our customers and guests.”

Peter Harf, senior partner at JAB, added: “We are thrilled to have such an iconic brand as Krispy Kreme joining the JAB portfolio. This is yet another example of our commitment to investing in extraordinary brands with significant growth prospects.

“We feel strongly that Krispy Kreme will benefit greatly from our long-term focus and support for management’s vision in building on the legacy of this exciting brand as an independent standalone entity.”

Lead image via Krispy Kreme Facebook.

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