Krispy Kreme Doughnut Corporation announced July 20 that it will acquire majority stake in Insomnia Cookies, a growing cookie chain with 135 shops in the U.S.
“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, CEO of Krispy Kreme Doughnuts, in a statement. “While our companies will continue to operate independently, these two great brands can learn a great deal from each other as we each continue to expand and grow.”
Krispy Kreme has 1,400 retail shops in over 32 countries, as well as placement in about 8,000 U.S. grocery, convenience, and mass merchant stores.
The doughnut company was acquired in 2016 for $1.36 billion by European investment firm JAB Holding Company, which purchased Panera Bread for $7.5 billion last year and Pret A Manger for an estimated $2 billion in May. For years, JAB Holding was associated with luxury brands such as Jimmy Choo and Bally, but as of late it has been aggressively buying up brands in the café and coffee space. Already its portfolio includes Peet’s Coffee, Einstein Bros. Bagels, Keurig, Dr Pepper, and Caribou Coffee.
“[Tattersfield] 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,” Seth Berkowitz, founder of Insomnia Cookies, said in the statement announcing the acquisition. “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. We are thrilled to be joining the Krispy Kreme family.”
The transaction will take place in the fourth quarter of 2018 with Insomnia Cookies to continue to be headed by Berkowitz and operate as a standalone company.