Donut producers looking to expand internationally
In October 2022, Krispy Kreme doughnuts were first sold by McDonald’s at nine locations. In February 2023, the cooperation reached 160 McDonald’s.
Even in the absence of a McDonald’s expansion, Charlesworth stated, “We think we can support 6,000 incremental points of access with the existing capacity, but that would leave certain parts of the country completely not served yet and still some underserved.”
Fast-food establishments will continue to be a target.
Charlesworth, who took over as CEO earlier this month, stated, “If it doesn’t work out in the discussions with McDonald’s, the QSR channel is, in our eyes, proven as a great growth driver.” We think that will be incredibly interesting, whether that’s in the US or elsewhere in the world. Hopefully, it’s McDonald’s.
Globally, Krispy Kreme intends to grow in France.
In addition, Randy’s Donuts in Inglewood, California, has intentions abroad. The corporation declared in July 2023 that it plans to grow in Hungary, India, Indonesia, Japan, Mexico, Morocco, Spain, and the United Kingdom during the next two years. Randy’s had 12 sites in California, 3 in Las Vegas, plus locations in the Philippines, Saudi Arabia, and South Korea at the time. The doughnut store has appeared in television programs like Jimmy Kimmel Live! and motion pictures like Iron Man 2.
Retail donut sales in 2023 saw a decline in volume despite an increase in sales, a scenario that is common to many food categories. According to Chicago-based market research firm Circana, sales of center-store, full-size donuts in US retail climbed 4.3% to $1.03 billion in the 52-week period ending Dec. 3, 2023. At 321 million, unit sales decreased by 6%. Sales for private label fell 0.2% to $35 million, while unit sales fell 27% to less than 9 million.
- You may also like:
Food security in emerging nations: issues and remedies
Are drinks the secret to increasing cannabis use among consumers?
Managing the lack of labour for mushroom picking
Although unit sales fell 2.8% to 112 million, Hostess Brands, Inc., of Kansas City, saw a 4.9% increase in dollar sales in the category to $292 million. In November 2023, the J.M. Smucker Co., located in Orrville, Ohio, successfully acquired Hostess Brands and established Sweet Baked Snacks, a new reporting category that includes Hostess Donettes.
According to Mark Smucker, president and chief executive officer of J.M. Smucker, “consumers’ growing reliance on snacking to fit lifestyle needs and convenience choices has expanded the occasions where the category can deliver, and the sweet baked goods category is one of the largest and fastest growing in the industry.” “We have a strong position in this very attractive segment with popular brands that consumers love thanks to the Hostess acquisition.”
A number of fresh goods hit the market. Two varieties of baked donut cakes—cinnamon and sugar and double chocolate chip—were introduced under the Entenmann’s trademark in January 2023 by Bimbo Bakeries USA, a division of Grupo Bimbo SAB de CV. In August, McKee Foods, located in Collegedale, Tennessee, revealed that it was going to introduce Pumpkin Spice Mini Donuts under the Little Debbie brand. To go with their soft middle, the donuts have a coating of cinnamon and sugar on top.