Krispy Kreme to Begin Making Low-Carb Doughnuts
By EMERY P. DALESIO
WINSTON-SALEM, N.C. (AP) — Krispy Kreme Doughnuts Inc. is prepared to adapt to the low-carb dieting phenomenon it blames for a drop in sales of their sugary snacks, the company’s top executive said Wednesday.
“The way we’re looking at it is we’re going to assume that it is” here to stay, Scott Livengood, chief executive officer of the doughnut-maker, said at the company’s annual meeting. “And we make our plans and do things in a, call it a worst case scenario. I think there is always a real possibility that people are going to decide a balanced lifestyle is appropriate for them and the dynamics will change again.
“But on the other hands we’re not going to take anything for granted.”
Krispy Kreme reported Tuesday that it lost $24.4 million in the first quarter, its first quarterly loss since going public in 2000. The company’s stock has fallen by about a third in the past month.
The company will continue expanding overseas, operate more efficiently and introduce new products to attract customers who aren’t going low-carb, Krispy Kreme executives told the about 220 shareholders who came to the meeting. Most seemed sympathetic to the challenges facing the company.
Grocery stores will start selling bags of Krispy Kreme coffee to brew at home and the company’s doughnut shops will start selling a low-sugar doughnut and frozen drinks this year.
Overseas expansion will focus on Asia with the first new stores in South Korea.
Krispy Kreme shares fell 23 cents to close at $19.65 Wednesday on the New York Stock Exchange.
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