Krispy Kreme acquired a majority stake in the bakery in 2018.
The company says that the decision will allow it to focus more on “its core strategy of producing, selling and distributing fresh doughnuts daily.”
Insomnia Cookies is a bakery that sells desserts and baked goods. The stores operate at late hours and are frequently found near college campuses. They offer delivery services as well.
“We acquired a majority stake in Insomnia Cookies to build our e-commerce and digital capability as well as assist Insomnia’s U.S. and International expansion. Both efforts have been successful and it’s time for the next strategic step for both companies.”Mike Tattersfield, Krispy Kreme CEO.
Krispy Kreme’s first storefront opened at 534 South Main Street in Winston-Salem in 1937 founded by Vernon Rudolph.
Before it became an international chain of restaurants, Krispy Kreme settled in Winston-Salem thanks to the popularity of Camel Cigarettes, which are manufactured by RJ Reynolds Tobacco Company, according to an archived article from The Chronicle, Duke University’s student newspaper.
“I think [headquartering Krispy Kreme in Winston-Salem] is totally random other than the cigarette,” according to Carver Rudolph, Vernon Rudolph’s son. Carver Rudolph added, “At that time, Winston was probably the industrial capital of North Carolina, ’cause of Reynolds tobacco and Haynes hosiery.”
The donuts were originally sold mostly to convenience stores. However, individual customers could come to the store between midnight and 4 a.m. for a hot doughnut.
The company has a corporate headquarters in Winston-Salem but moved its main corporate operations to Charlotte in 2017.
“It has been an honor to partner with Krispy Kreme in an unprecedented chapter of growth for Insomnia Cookies,” said Founder and Insomnia CEO Seth Berkowitz. “As we enter our 20th year of delivering warm, delicious cookies, we are now a sizeable multi-channel enterprise but still have a huge runway ahead in the attractive $700 billion indulgence industry, and I look forward to leading our Insomniacs in our next phase of significant domestic and global expansion.”
Krispy Kreme has stores in over 30 countries. The company plans on entering 3-5 new counties every year.