Krispy Kreme has announced it is exploring strategic alternatives for Insomnia Cookies, including the possibility of an all-cash sale. Krispy Kreme acquired a majority stake in Insomnia Cookies in 2018 and expects revenues of approximately $230 million in fiscal year 2023. This decision reportedly would enable Krispy Kreme to unlock shareholder value and focus 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. Both efforts have been successful and it’s time for the next strategic step for both companies,” says Mike Tattersfield, Krispy Kreme CEO. “Krispy Kreme has expanded rapidly through our capital-light omnichannel model, and the brand is now in 37 countries selling fresh doughnuts through nearly 13,000 points of access daily.”