JAB-owned Krispy Kreme acquires majority stake in Insomnia Cookies
Krispy Kreme Doughnuts announced taking a majority stake in Insomnia Cookies, a late-night cookie delivery company with 135 stores in the United States. Insomnia Cookies was launched in 2003 by Seth Berkowitz at the University of Pennsylvania, while a student there. The delivery of warm, tasty cookies to dorm rooms inspired a business for sweets-lovers that may now be primed for global expansion.
JAB Holding Company acquired Krispy Kreme for approximately $1.35B in 2016. Through Krispy Kreme’s investment in Insomnia Cookies, JAB is further extending its reach in the U.S. bakery,-chain landscape, as it also continues to build its presence in the coffee and sandwich categories in U.S. retail and foodservice, and strengthens its position in the global arena for such products. Krispy Kreme has an office in London, which could prove a useful launching pad for Insomnia Cookie products in Europe and elsewhere.
My team and I are confident that this shared vision makes Krispy Kreme the ideal partner to support Insomnia through our next phase of growth.”
Insomnia Cookies carries its namesake cookie selections, in addition to brownies, cookie cakes, ice-cream and cold milk.
“My team and I are confident that this shared vision makes Krispy Kreme the ideal partner to support Insomnia through our next phase of growth ,” said Insomnia’s Berkowitz, in a Krispy Kreme company statement. “We are thrilled to be joining the Krispy Kreme family.”
The delivery model could also benefit Krispy Kreme as the doughnut chain seeks to capitalize on the growing popularity of off-premise food. Terms of the transaction, which is expected to close in Krispy Kreme’s fourth quarter 2018, were not disclosed.
Following the Krispy Kreme acquisition of the majority stake, Insomnia Cookies will continue to operate as an independent company, led by Berkowitz, said Krispy Kreme CEO Mike Tattersfield.
Photo credit: Insomnia Cookies