Sources said the deal, which values Insomnia Cookies at less than $500 million, could be announced within the next few weeks, according to CNBC.
It would also help to expand the coffee and restaurant empire that European investment firm JAB Holding has been putting together. JAB acquired Krispy Kreme in 2016 for $1.35 billion. At the time, Peter Harf, a JAB senior partner, noted that the deal “is yet another example of our commitment to investing in extraordinary brands with significant growth prospects.”
Krispy Kreme and Insomnia weren't immediately available to comment, and sources said the deal could still fall apart.
Founded in 2003 by a University of Pennsylvania student, Insomnia Cookies' stores stay open and deliver until 3:00 a.m. Its 135 locations are often near college campuses, selling cookies, brownies and cold milk.
Based in Winston Salem, North Carolina, Krispy Kreme is best known for its signature fresh and hot glazed doughnuts. It has nearly 1,400 retail shops in 32 countries.
The acquisition could help Krispy Kreme better compete with its main rival, Dunkin' Donuts, which sells two billion donuts annually across 12,000 locations worldwide. It recently partnered with Google on mobile voice ordering via Google Assistant. Dunkin’ reward members will now be able to chat up Google Assistant after they’ve synced up their accounts and place their orders on the go. The program is supposedly compatible with iOS and Android devices.
In order to stay on top of its game, Dunkin’ said it uses market research, trends analysis and sales data to evaluate and innovate menu items based on important factors like variety, sizes and flavors.
The company added that it’s important to empower consumer decision-making by providing enough options for different types of consumers. That’s how Dunkin’ has successfully weathered Americans’ growing consciousness around living healthy lifestyles.