Christopher Cain Offers Insight on Krispy Kreme’s Proposed Sale of Insomnia Cookies
Foley & Lardner LLP partner Christopher Cain is quoted in the Mergers & Acquisitions article, “Who Will Put Up the Dough for Insomnia Cookies?” commenting on Krispy Kreme Inc.’s announcement this month that it is exploring strategic alternatives for its Insomnia Cookies brand, including the consideration of an all-cash sale.
Cain explained that a potential reason why Krispy Kreme wants to sell Insomnia is rising competition.
“They could be afraid of the freight train that is Crumbl,” Cain said, referring to the quickly growing Crumbl Cookies brand. “They’re expanding so rapidly that maybe in the back of Krispy Kreme’s mind is ‘What are we going to do if Crumbl decides to go after the up until 3 a.m. crowd?’, which they could do.”
“If I were Krispy Kreme, I would say, ‘I don’t really want to be in the crosshairs owning Insomnia,’” Cain said. “That could be another thing that they’re worried about – that this may be the peak value for Insomnia if Crumbl continues to expand at the rate they are.”
“I would be shocked if it wasn’t a PE firm that buys them,” he added.
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