Krispy Creme donuts are known for being mouth-watering and delicious. Everyone knows its donuts but people are not inclined to eat one. The fast emerging low-carb trend stopped previous record sales in their tracks. Now the new CEO is attempting to leverage the iconic brand to new product offerings such as sandwiches served on something sweet. Growth will also come from licensing the brand for products such as ice cream, and sweet tasting “Krispy Creme” coffees. The question is are these really new business opportunities or simply a means to grab a bit of competitive marketshare to keep sales from further eroding.
In the hey-day of Krispy Creme’s expansion into Canada, one retailer believed so much in the growth opportunity of Krispy Creme that they made substantial investments in racking space in their stores and put the iconic logo on their property signage. Distribution problems, flat sales and product write-offs burned holes in the retailer’s wallets and the product’s extensive in-store presence slowly disappeared.
What lessons can be learned from the Krispy Kreme dilemma in your business?