Dive Summary:
- Krispy Kreme wants fans of its famous glazed donuts to get them hot at the retail level rather than boxed at other stores.
- Selling those yeast-raised donuts wholesale is a problem. They spoil in about two days. That's forced the company to spend millions to resupply vendors.
- To fix this, Krispy Kreme will a) build smaller, retail-only stores, and b) push supermarkets and convenience stores to stock products with a longer shelf life.
Dive Insight:
Have you ever eaten a Krispy Kreme glazed donut hot off the conveyer belt at a retail outlet? It's heaven! Ever eat one cold from a box from a supermarket? Not so great, is it? Here's a little donut wisdom for you: hot and fresh is better. And if you really, really want to know what a Krispy Kreme donut is supposed to taste like, visit one of the older retail outlets near corporate headquarters in Winston-Salem, N.C. Those folks know what they're doing!
From the article: "Over time, we expect our wholesale product line to become increasingly differentiated from the products offered in our shops in order to improve the economics of this distribution channel,” the filing states. That could mean fewer of its popular glazed doughnuts in supermarkets. (The company wouldn’t say.) As Krispy Kreme tries to improve the shelf life of its yeast-raised doughnuts, it’s also marketing longer shelf-life products, such as honey buns, to grocers."
