Krispy Kreme is getting out of the CPG snack business. With the closure of its snack facility in Concord, NC, 102 people will lose their jobs.
The job cuts, which will take effect May 11, were disclosed in a layoff notice filed with the state of North Carolina.
“All employees who work at this facility will be separated,” the company said in a notice. “This action is expected to be permanent.”
Krispy Kreme plans to focus on its daily fresh delivery doughnut business. The company bakes doughnuts each day in its franchise locations and delivers them to other access points, including grocery retailers.
According to Krispy Kreme’s earnings report last month, there are 5,741 places where fresh donuts baked at Krispy Kreme shops are sold in the US and Canada. On Wednesday, CEO Michael Tattersfield said at the Bank of America Securities 2023 Consumer & Retail Conference that the company expects to have 20,000 fresh-delivery locations globally by the end of this year.
“Our fresh daily doughnut business is strong, profitable, and growing quickly. This is the area where we are focusing our investments and resources,” an emailed statement from Krispy Kreme said. “Because of this, we chose to exit our underperforming, extended shelf-life snack aisle business and cease production at our manufacturing facility in Concord, N.C., where these snack aisle products were made.”
Krispy Kreme got into the CPG business in 2020, with packaged Doughnut Bites and Mini Crullers.
