Krispy Kreme Plans to Sell Insomnia Cookies Unit, Reports Reuters

Krispy Kreme is considering various options for its Insomnia Cookies division, including a potential sale, as the company shifts its focus back to its primary business of doughnut sales. This decision aligns with a broader trend among U.S. packaged food companies—such as Campbell Soup and JM Smucker—that are reevaluating their brand portfolios in light of declining growth following the pandemic and rising costs.

Insomnia Cookies operates more than 250 locations across three countries and is projected to generate approximately $230 million in revenue for the 2023 fiscal year. In contrast, Krispy Kreme reported total revenue of $1.53 billion for the entirety of 2022.

Krispy Kreme originally acquired a majority stake in Insomnia Cookies, a late-night cookie delivery service known for its warm cookies, back in 2018, though the details of the acquisition were not disclosed. The specific percentage of the stake that Krispy Kreme currently holds in Insomnia has not been made clear.

On Tuesday, the company expressed its intention to concentrate on its main strategy of producing, selling, and distributing fresh doughnuts on a daily basis. Krispy Kreme has enlisted financial advisors from Evercore and Morgan Stanley to assist in this process. Following the announcement, the company’s shares increased by 3% in pre-market trading.