JAB Holdings-controlled donut and coffee chain will take majority control of franchisee Krispy K Canada in a bid to accelerate growth in the country
Krispy Kreme currently operates 1,400 stores worldwide | Photo credit: Krispy Kreme
US donut and coffee chain Krispy Kreme has signed a definitive agreement to take majority control of franchisee Krispy K Canada, which operates 11 stores in Canada.
The deal now means Krispy Kreme will control 75% of sales across its circa 1,400 stores globally following the completion of the agreement. The financial terms were not disclosed.
Christopher Lindsay and Kelcey Hamaker, Krispy K Canada’s operating partners, will remain as co-CEOs and continue to manage day-to-day store operations.
“Through our global transformation, we have laid the groundwork to capitalise on the runway for growth in Canada by deploying our omnichannel strategy,” said Mike Tattersfield, CEO, Krispy Kreme.
Krispy Kreme’s omnichannel strategy enables the chain to target more customers via points of access, which includes cafés, e-commerce, delivery, and retail.
The company said that with only 11 points of access across Canada, where it opened its first store in 2010, the country represents significant growth opportunities.
Krispy Kreme, which opened its first store in North Carolina in 1937, sells branded bakery and coffee products in 12,000 grocery and convenience stores in the US and operates more than 1,400 stores in 33 countries. The company promotes it makes 4,560 donuts every hour.
Further highlighting Krispy Kreme’s international ambitions, in September 2021, the chain opened its first brick-and-mortar in Egypt and announced plans to open 10 further stores in the country by late 2022.
In July 2021, the donut and coffee chain raised $500m in an IPO valuing the company at $2.7bn.