Krispy Kreme Announces 3 New Doughnut Manufacturing Facilities
North Carolina-based doughnut maker, Krispy Kreme, just announced plans to expand the company’s manufacturing capacity in three states including Florida.
The company shared the expansion news on its recent earnings call with shareholders which also included news about retail expansion into new markets overseas.
Krispy Kreme plans to build three new manufacturing facilities in three states where the company already has a sizeable retail presence: Florida, California and Minnesota.
While exact locations were not given, media reports indicate the three new Krispy Kreme doughnut manufacturing facilities will be located in South Florida, greater Los Angeles and the Minneapolis-Saint Paul area.
How Does Krispy Kreme Make Their Doughnuts?
Krispy Kreme used to make their doughnuts by hand from the company’s original location in Winston-Salem in 1937 all they way up until 1963.
For the past sixty years, the company has relied on increasingly large-scale shaping, frying, glazing and sorting equipment with conveyor belts to keep the yeasty dough rings moving toward the goal of glazed perfection.
Krispy Kreme in Florida
Krispy Kreme already has a solid retail presence in Florida with 33 locations in 24 cities. Seven Florida metros already have more than one Krispy Kreme location.
Six Florida cities have two Krispy Kreme locations: Kissimmee, Lakeland, Pensacola, Tallahassee, Tamarac and Tampa. And Jacksonville is the state’s Krispy Kreme mecca with 4 locations.
The new manufacturing facility will be located closest to the company’s 8 existing South Florida locations, as well as thousands of grocery stores, convenience stores, and McDonald’s outlets that sell the company’s signature doughnuts.
Krispy Kreme Expanding Operations to Brazil
In addition to the new manufacturing facility announcement, Krispy Kreme just announced that the company has entered into a joint venture that will bring the iconic doughnuts to Brazil. Brazil will become the first South American country with Krispy Kreme locations.
For the joint venture, Krispy Kreme is partnering with AmPm Comestíveis Ltda (AmPm), the operator of one of the largest chains of convenience stores throughout Brazil. The chain is owned by Ipiranga, a Rio-based fuel company and the largest private fuel distribution player in the country.
C-Stores are very attractive retail outlets for Brazilian consumers, especially when combined with service stations. There are over 8,000 of these service stations in Brazil, and AmPm accounts for 60% of the total, according to Global Convenience Store Focus.
“We are thrilled to share the joy that is Krispy Kreme in Brazil,” said Raphael Duvivier, Krispy Kreme, Chief Development Officer. “Our fresh doughnuts will be a great fit in a country well-known for its culture and enjoyment of sharing meals and sweets with family and friends.”
"We are thrilled to share the joy that is Krispy Kreme in Brazil. Our fresh doughnuts will be a great fit in a country well-known for sharing meals and sweets with family and friends."
“In addition, we are very pleased to partner with AmPm,” continued Raphael. “They have built a strong retail presence along with deep experience for iconic brands like ours.”
Brazil represents a priority growth market for Krispy Kreme and this news follows its successful December 2023 launch in Paris. The company anticipates launching in Brazil between the end of 2024 and early 2025.
Contact CII Today
If you own a manufacturing business and would like to learn more about steps you can take today to maximize the enterprise value of your operation, please reach out to our team of CII business advisors using the form below.