While some Krispy Kreme products are already sold via direct store delivery in more than 5,000 convenience stores nationwide, the new deal will bring packaged products including snack bags, honey buns and single-serve pies to the market.
“TSW Foods will act as our master distributor to develop a national distribution network in convenience stores,” said Mark LaBrecque, Krispy Kreme Doughnuts VP of domestic marketing, licensing and consumer packaged goods.
Following the convenience store launch, products are set to be extended into drug, club and dollar stores.
Experience in product development
TSW Foods said it has brought its experience in product development and production, supply chain management, and sales/trade marketing to the project.
“When you combine Krispy Kreme’s brand equity with TSW Foods’ ability to execute on a national scale, it is a recipe for success,” said TSW Foods managing principal Wil Torres. “There is a synergy between our two companies that we feel will result in a profitable, long-term partnership for both of us.”
Krispy Kreme said many of the new snacking items would use its Original Glaze flavor.
Krispy Kreme acquired by JAB Beech
News of the convenience store launch comes a week after Krispy Kreme Doughnuts was acquired by investment firm JAB Beech.
The $1.35bn deal was unanimously approved by Krispy Kreme’s board of directors, and Krispy Kreme will continue to be independently operated from its headquarters in Winston-Salem, North Carolina.
The JAB portfolio includes controlling stakes in coffee businesses Keurig Green Mountain and Jacobs Douwe Egberts, and in luxury goods companies including Jimmy Choo.
“JAB’s experience and industry knowledge make them the ideal partner to help grow the Krispy Kreme brand,” said Krispy Kreme CEO Tony Thompson, adding the business would remain focused on its long-term strategy to offer “premium, high-quality doughnuts and sweet treats to consumers around the world.”