Coffee & Donuts: the Timeless Combination Goes Private
There’s nothing better than dunking a glazed donut into a mug of hot coffee. The timeless combination of coffee and donuts has the most alluring smell and will give you a reason to wake up in the morning. On Monday, May 9, our beloved Krispy Kreme announced that it was being acquired by JAB Holding Company, who recently just took-on Keurig Green Mountain and maintains investments in other companies like Caribou Coffee. JAB is building a coffee empire and it doesn’t seem that they’re slowing down anytime soon. We’re hoping that these two companies will go together as naturally and easily as coffee and donuts.
Krispy Kreme started as a single store in 1937 in none other than Winston-Salem, NC. After being franchised and being publicly trading by 2000, the company was beginning to grow too quickly with stores opening all over the world. Now with Jab Holding’s stepping in, Krispy Kreme is being sold for nearly $1.35 billion at a whopping $21 per share. The donut-loving board agreed unanimously that this merger was for the best. Even though the company will be privately owned, it will continue to be independently operated from it’s current headquarters and where it all began in North Carolina.From humble beginnings,
As JAB Holdings works to build a coffee enterprise, they maintain stakes in Jacobs Douwe Eberts, the company behind brands like Gevalia, a Swedish coffee, and Tassimo, a system similar to Keurig. They also have stakes in Einstein Bros. Bagels and Caribou, which are soon to be collaborating under one room. Needless to say, the people at JAB know their coffee. Senior partner, Peter Harf, was quoted saying that their strategy at JAB is to invest in companies that have “significant growth prospects”. Krispy Kreme obviously has already done pretty well for themselves with locations all over the world, their newest stores opening in places like Asia and Mexico.
Krispy Kreme still gets most of their sales from their delicious donuts and other pastries. Unlike rival companies like Dunkin’ Donuts, Krispy Kreme doesn’t sell much coffee. But they have said they wanted to step up their beverage game. This can definitely be done after being acquired by a company like JAB that knows coffee so well. Soon, you’ll probably be able to walk into a Krispy Kreme and get a fancy Caribou Coffee drink or maybe even go to Einstein’s to get a Krispy Kreme donut. As Jab Holding Company begins to eat up all things coffee and breakfast related, our only hope is that they stay true to the brands it has acquired. But we are definitely not worried about our friends at Krispy Kreme; they’ve been making donuts for nearly 75 years and they still continue to bring high quality and delicious goods.