Krispy Kreme acquired a significant stake in Insomnia Cookies in 2018. Credit: Alan Budman via Shutterstock.com.

Krispy Kreme plans to divest its bakery business, Insomnia Cookies, in an all-cash transaction to focus on its core doughnut business.

Known for serving warm cookies, Insomnia Cookies is currently present in three countries and operates more than 250 bakery outlets.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Krispy Kreme CEO Mike Tattersfield said: “We acquired a majority stake in Insomnia Cookies to build our e-commerce and digital capability as well as assist Insomnia’s US and International expansion. Both efforts have been successful and it’s time for the next strategic step for both companies.

“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.

“Looking ahead, our goal is to expand to more than 75,000 points both by entering 3-5 new countries each year and developing new channels like quick service restaurants.”

In 2018, Krispy Kreme acquired a significant stake in Insomnia Cookies and estimates that the business could generate around $230m in fiscal year 2023.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

By divesting its bakery chain, Krispy Kreme aims to unlock shareholder value and shift focus mainly towards its doughnut business.

Insomnia Cookies founder and CEO Seth Berkowitz said: “It has been an honour to partner with Krispy Kreme in an unprecedented chapter of growth.

“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 $700bn indulgence industry, and I look forward to leading our Insomniacs in our next phase of significant domestic and global expansion.”

For this divesture, Krispy Kreme appointed Evercore and Morgan Stanley & Co as financial advisors.