Krispy Kreme Looks to Sell Cookie Operation

The company renews its focus on doughnuts.

October 05, 2023

Krispy Kreme is exploring options for its Insomnia Cookies unit, including a sale, as reported by Reuters.  The sweet treat maker says it wants to refocus on its core strategy of producing, selling and distributing fresh doughnuts daily.

“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,” said Krispy Kreme CEO Mike Tattersfield. “Both efforts have been successful and it’s time for the next strategic step for both companies.”

Krispy Kreme acquired control of Insomnia Cookies in 2018 in a deal backed by European investment firm JAB Holding. The deal valued Insomnia Cookies at less than $500 million, sources told CNBC.

Insomnia Cookies, which operates in three countries with over 250 bakeries, is expected to deliver revenues of about $230 million in fiscal year 2023, Krispy Kreme said. The cookie delivery company is known for serving warm cookies all day and late into the night.

“It has been an honor to partner with Krispy Kreme in an unprecedented chapter of growth for Insomnia Cookies,” said 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 $700 billion indulgence industry, and I look forward to leading our Insomniacs in our next phase of significant domestic and global expansion.”

Read about the latest foodservice trends in “Find Your Next Flavor” in the September issue of NACS Magazine.