“At Krispy Kreme, we have an 81-year heritage of creating the most awesome doughnut experience imaginable, and today we are delighted to add Insomnia Cookies, a rapidly growing business with an innovative delivery experience and exceptional product that is beloved by consumers," Krispy Kreme CEO Mike Tattersfield said in a statement. "While our companies will continue to operate independently, these two great brands can learn a great deal from each other as we each continue to expand and grow.”
The company said it expects the insanely sweet to be completed in the fourth quarter of this year. Additionally, Insomnia Cookies will continue as a standalone brand run by its founder, Seth Berkowitz, under Krispy Kreme ownership, according to a press release.
“Mike and I share the same ambition for our brands: To be the best at what we do and delight consumers with the highest quality sweet treat experiences," Berkowitz said. "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. We are thrilled to be joining the Krispy Kreme family.”
When it goes through, the transaction will mark yet another popular food brand added to the portfolio of Krispy Kreme's parent company, JAB Holding. The European investment firm, which picked up the donut chain in 2016, already owns Keurig Dr Pepper, Peet's Coffee & Tea, and Panera Bread Co. It would also potentially mean the next time you stop by KK for an Original Glazed and a cup of coffee, you could also pick up a box of warm, chewy cookies. CNBC first reported early details about the deal on Thursday afternoon.
Beyond being a good match in terms of their complementary baked goods offerings, it would also allow both brands to significantly expand their imprint across the country, and the globe. Insomnia Cookies, which is currently valued at less than $500 million, has 135 locations, many of which are located near college campuses in order to better cater to late-night student cravings. Add that to Krispy Kreme's 1,400 locations in 32 countries and the potential reach for new customers is huge, especially if they integrate Insomnia's famous delivery service, which operates until 3am.
Then again, it's probably wise not to get too excited about the prospect of sweet, sweet donut/cookie binges just yet, considering the company didn't offer any details on if and how it might incorporate Insomnia into its stores.