Germany’s JAB Adds Krispy Kreme To Coffee Empire

It was a sweet takeover for Krispy Kreme Doughnuts when JAB Holding Co., the German conglomerate and owner of bagel, coffee and tea brands announced in May that its JAB Beech subsidiary is purchasing the 1,121-unit chain for US$1.35 billion.

In the past few years, JAB has grown its stake in American chains by acquiring Einstein Noah Restaurant Group, Caribou Coffee, Peet’s Coffee & Tea and Stumptown Roasters. Late last year, it spent roughly US$13.9 billion to acquire single-serve coffee machine maker Keurig Green Mountain.

Krispy Kreme will remain independently operated in North Carolina. The deal, still subject to regulatory and shareholder approvals, is expected to close in the third quarter. The doughnut chain is a mainstay in the Southern United States and began expanding rapidly in the 1990s, opening large outlets across the country’s major metropolitan areas and expanding overseas. Systemwide, its store count grew better than 13% last year, most of that fueled by expansion efforts in 27 countries; nearly three-quarters of Krispy Kreme locations are overseas.