Krispy Kreme to invest in accelerating growth in Canada
Krispy Kreme has its eye on Canada.
The doughnut chain, which went public in July, has signed a definitive agreement to take majority control of franchisee and operator Krispy K Canada. Financial terms of the deal were not revealed.
The agreement is in line with Krispy Kreme’s strategic transformation, driven in large part by increased control over its operations. Once the deal is completed, Krispy Kreme will control 75% of sales across its global network. The investment in Canada also builds on the company’s international growth momentum and expansion into new markets around the world.
Krispy K Canada operating partners Christopher Lindsay and Kelcey Hamaker will remain as co-CEOs of the entity after the transaction is completed. They will continue to manage the day-to-day operations of Krispy K Canada shops.
“We are extremely excited to partner with Chris and Kelcey to help them deliver on their vision and expand our reach in Canada, tapping into their local experience to accelerate our growth,” said Mike Tattersfield, CEO of Krispy Kreme. “Through our global transformation, we have laid the groundwork to capitalize on the runway for growth in Canada by deploying our omnichannel strategy.”
Krispy Kreme operates approximately 1,500 shops in 33 countries. Its goods are also sold in 12,000 U.S. grocery and convenience stores. In addition to its name-branded stores, Krispy Kreme also owns Insomnia Cookies, which it bought in 2018.
With just 11 points of “access” across Canada, the country represents a significant opportunity for expansion, the company said. By comparison, the United Kingdom and Australia – markets with similar dynamics to Canada – each currently have over 1,000 points of access. Krispy Kreme said it has seen strong growth in these markets, driven by the efficient execution of the hub and spoke model.
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