JAB Holding Company-owned Krispy Kreme announced Tuesday that the company is considering “strategic alternatives” for Insomnia Cookies, including a possible all-cash sale of the Philadelphia-based cookie brand. Insomnia Cookies was acquired by Krispy Kreme in 2018 and since then, the company has grown exponentially, including tripling its revenue over the past six years. Insomnia Cookies expects revenues of approximately $230 million for 2023.
According to Krispy Kreme, putting Insomnia Cookies up for sale would be a way to “unlock shareholder value” and focus exclusively on the success of Krispy Kreme and its newly regenerated “hub and spoke” business model.
“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,” outgoing Krispy Kreme CEO Mike Tattersfield said in a statement. “Both efforts have been successful and it’s time for the next strategic step for both companies.”
The executive team at Krispy Kreme wants to focus solely on the doughnut brand as the company looks to expand global points of access from 13,000 to 75,000, which they’ll be able to do by entering three to five new countries every year.
“It has been an honor to partner with Krispy Kreme in an unprecedented chapter of growth for Insomnia Cookies,” Insomnia Cookies founder and CEO Seth Berkowitz said in a statement. “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 $700 billion indulgence industry, and I look forward to leading our Insomniacs in our next phase of significant domestic and global expansion.”
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