Milling & Baking News - March 21, 2023 - 10

TUES | 03 21 202 3
Krispy Kreme exiting branded
sweet treats business
CHARLOTTE, NC. - In an earnings conference
call with investment analysts a
little over a year ago, executives at Krispy
Kreme Inc. spoke hopefully of the company's
branded sweet treats business. Indications
were that the business - albeit a
small portion of Krispy Kreme's portfolio
- would reach profitability by the middle
of 2022, approximately two years after
launching the products.
But on March 10 the company filed a
Worker Adjustment and Retraining Notification
(WARN) with the North Carolina
Department of Commerce stating its intent
to close its donut manufacturing plant in
Concord, NC, effective May 11. The Concord
facility has been the only plant making
the company's branded sweet treats since
Krispy Kreme transferred production
there after closing its facility in Burlington,
Iowa, in October 2022.
In line with the Concord plant's closing,
Krispy Kreme has ended its experiment
in the extended shelf-life snack aisle.
" Our fresh daily donut business is
strong, profitable and growing quickly, "
Krispy Kreme said. " This is the area
where we are focusing our investments
and resources. Because of this, we chose
to exit our underperforming,
extended shelf-life snack aisle
business and cease production
at our manufacturing
facility in Concord, NC,
where these snack aisle
products were made. We
are supporting our affected
employees, all of whom are
eligible to apply for any open
position or for severance and outplacement
services. We are grateful to all of
them. Also, while we no longer plan to
expand our Winston-Salem manufacturing
facility and workforce, we will maintain
our existing Winston-Salem operations
and our nearly 300 employees. "
The Concord plant's closing will affect
102 employees, Krispy Kreme said.
Krispy Kreme made a new move into
retail in June 2020 with the rollout of
Ardent Mills pledges $3.5 million
to KSU Ag Innovation Initiative
DENVER - Ardent Mills is gifting $3.5
million to Kansas State University's Ag
Innovation Initiative, which is the university's
name for its ag infrastructure upgrades
including grain science and industry teaching
and research components. The funds
will be paid out over the next five years to
support KSU's Grain Science and Industry
Department's growth, research and development
capabilities through 2026.
" Ardent Mills is passionate about
cultivating an innovative future for our
industry and is committed to help grow
our future leaders, " said Troy Anderson,
vice president of operations
at Denver-based Ardent Mills.
" That's why this partnership
with K-State's Ag Innovation Initiative
excites us. The evolving
interdisciplinary and collaborative
approach, along with new
facilities, will enable exceptional,
diverse talent development and
best-in-class research to help solve
food and agriculture challenges
today and for generations to come. "
10
MILLING & BAKING NEWS
Doughnut Bites and Mini Crullers.
The Krispy Kreme Doughnut Bites are
bite-size donut holes in original glazed,
chocolate and apple cinnamon flavors,
while the Krispy Kreme Mini Crullers
feature an enhanced recipe of the company's
cruller donuts available in original
glazed and blueberry varieties.
Krispy Kreme over the past two years
has offered seasonal flavors of the
new offerings, including strawberry
Doughnut Bites and
lemon Mini Crullers.
Krispy Kreme said it will
focus on its fresh business,
which includes the donuts
consumers buy in its shops,
order through the app and
website for in-shop pickup or
delivery, and buy in a Delivered Fresh
Daily donut case at partner grocers and
retailers. The company also recently
expanded its donuts market test with
McDonald's restaurants in Kentucky.
" We are maintaining our 2023 and
2026 growth and financial targets as well
as our guidance, " Krispy Kreme said.
" Our fresh daily global donut business
continues building on its long-term trajectory
to 75,000 points of access. " MBN
As part of its gift, Ardent Mills said it will
collaborate with KSU's College of Agriculture
leadership to establish baseline metrics
and goals associated with total student
enrollment, recruitment and retention of
diverse students.
The company also plans to work to create
leadership development opportunities
within the university's milling and baking
science programs.
" We want to thank Ardent Mills for
their generous gift, which aligns with our
vision of working closely with private
industry to develop and diversify Kansas
and the world's food and agricultural
economy, " said Ernie Minton, dean of the
College of Agriculture and director of
K-State Research and Extension.
KSU earlier this year unveiled it has
raised $81.4 million to initiate phase one
of an infrastructure upgrade of several
departments within the College of Agriculture,
including the Department of
Grain Science and Industry. MBN
bakingbusiness.com
KANSAS STATE UNIVERSITY AND KRISPY KREME
http://www.bakingbusiness.com
Milling & Baking News - March 21, 2023

Table of Contents for the Digital Edition of Milling & Baking News - March 21, 2023
