As US donut group Krispy Kreme continues to expand its Australian operations—opening its fifth store this week—in the US the group has blamed the low-carb dieting phenomenon for its first quarterly loss since going public in 2000.
Krispy Kreme’s US headquarters, which reported this week that it lost $US24.4 million in the first quarter, said it was prepared to adapt to the low-carb dieting phenomenon it blamed for a drop in sales. The company’s stock has fallen by about a third in the last month.
At the company's annual meeting chief executive Scott Livengood reportedly said the company assumed the low-card fad was here to stay, however it planned to keep expanding overseas, operate more efficiently and introduce new products to attract customers who were not going low-carb.
US 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 planned for South Korea.