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Just a week after announcing that it has agreed to be acquired by investment group JAB Beech in a deal that has an equity value of $1.35 billion, Krispy Kreme announced a partnership with TSW Foods "to bring Krispy Kreme® brand packaged sweet treats such as snack bags, honey buns and single serve pies to convenience stores across the United States."

“We are thrilled to offer a line of Krispy Kreme snack items, many of which are differentiated with our Original Glaze flavor,” said Mark LaBrecque, VP Domestic Marketing, Licensing and Consumer Packaged Goods for Krispy Kreme Doughnuts.
KC's View:
Wow. I feel like I've seen this movie before. It wasn't that many years ago that Krispy Kreme, then a niche retailer with a high level of buzz and growing sales, decided that it wanted to be ubiquitous - and it ended up with doughnuts being available pretty much everywhere. The problem was that they weren't nearly as good as the fresh doughnuts it sold in its stand-alone stores, and the brand suffered. (It also wasn't helped by franchisee issues and the low-carb trend.)

It seems like lately that Krispy Kreme has gotten some of its mojo back, but if these new packaged products are not as good as its doughnuts, the risk is that in search of new revenue, it could once again damage the brand. Companies have to be careful to nurture their brands, not exploit them without worrying about the long-term implications.

Like I said, I've seen this movie before. Last time, it didn't end well.