There’s nothing like a cup of Joe and a doughnut in the morning, but if you’re not a fan of glazed fried dough, doughnut giant Krispy Kreme might be on track to begin offering additional breakfast sweets. This week, JAB Holding Company-owned Krispy Kreme announced the acquisition of Insomnia Cookies, a 135-location chain with a loyal following. According to a report by CNBC, the deal values Insomnia Cookies at $500 million.
“At Krispy Kreme, we have an 81-year heritage of creating the most awesome doughnut experience imaginable, and today we are delighted to add Insomnia Cookies, a rapidly growing business with an innovative delivery experience and exceptional product that is beloved by consumers,” said Mike Tattersfield, Krispy Kreme’s CEO, in a statement, according to Business Insider.
In 2016, JAB acquired Krispy Kreme for $1.35 billion, and Pret A Manger in 2018. The company also owns Peet’s Coffee, Panera Bread, Au Bon Pain, and Keurig. With the addition of Insomnia Cookies, which has doubled in size in the last three years, Business Insider posits the company is looking to bolster its café-and-coffee empire by absorbing Insomnia Cookies’ largely college student-based following.
“Mike and I share the same ambition for our brands: To be the best at what we do and delight consumers with the highest-quality sweet-treat experiences,” said Seth Berkowitz, CEO of Insomnia Cookies, in a statement. “My team and I are confident that this shared vision makes Krispy Kreme the ideal partner to support Insomnia through our next phase of growth.”
The acquisition is expected to close in the fourth quarter of this year. According to Business Insider, Insomnia Cookies will continue to be headed by Berkowitz and will act as an independent, standalone company.
Who else is JAB Holding Company eyeing as it looks to further position itself at the front of the restaurant bakery sector? Deli Market News will continue to report.
