Krispy Kreme hopes to leverage its donut sales to expand its overall product mix, said Jim Morgan, chairman and chief executive officer, during the company’s annual shareholder meeting on June 12. Morgan acknowledged that developing a better product sales mix will be key to the company’s future growth.
Currently, donut sales make up about 80 percent of Krispy Kreme’s business. Beverages account for about 12 percent of sales, with coffee contributing 4 percent. The natural partnership between coffee and donuts should lead to higher overall coffee sales, Morgan noted. The company hopes to grow coffee sales to 12 percent of total sales during the next several years.
“If we do that, and we do that on the higher sales number, which we certainly intend to accomplish, then that would be a significant driver of our success and our profits over the next few years,” Morgan said during the meeting. “And we’re excited about the potential and we think that will only be a beginning of what we can do in beverage.”
To achieve that higher sales number Krispy Kreme will lean on its recently launched beverage program, which features drip coffee in three blends: house, dark roast and house decaf.