Krispy Kreme, Inc., a JAB Holding Co. business unit, is exploring strategic alternatives for Insomnia Cookies, including an all-cash sale, according to the company.
“We acquired a majority stake in Insomnia Cookies to build our e-commerce and digital capability as well as assist Insomnia’s US and international expansion,” said Mike Tattersfield, chief executive officer of Krispy Kreme. “Both efforts have been successful, and it’s time for the next strategic step for both companies.”
Krispy Kreme acquired the business in 2018 for an undisclosed amount. Insomnia Cookies is a digital marketer and retailer of such indulgent products as cookies and ice cream. Today, the business generates approximately $230 million in sales.
“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 $700 billion indulgence industry, and I look forward to leading our Insomniacs in our next phase of significant domestic and global expansion,” said Seth Berkowitz, CEO of Insomnia Cookies.
Krispy Kreme said divesting Insomnia Cookies will allow it to focus on its core strategy of producing, selling and distributing fresh donuts daily.“Krispy Kreme has expanded rapidly through our capital light omnichannel model, and the brand is now in 37 countries selling fresh donuts through nearly 13,000 points of access daily,” Mr. Tattersfield said. “Looking ahead, our goal is to expand to more than 75,000 points both by entering three to five new countries each year and developing new channels like quick service restaurants.”