The low-carb craze spreading across the United States has taken
a big bite out of the Krispy Kreme Doughnuts' profits as sales continue
to plummet.
A 2.3 percent drop in sales heavily impacted the doughnut company
in the 12 weeks ended June 13 from their prior year. These statistics
included Krispy Kreme sales from supermarkets, drugstores and mass
merchandisers.
Share prices also fell by 40 percent since the company's May 7th
warning and analysts aren't predicting a positive sales outlook
for this upcoming year.
Krispy Kreme has placed blamed upon the low-carb craze such as
the Atkins and South Beach diet for their drop in sales.
In order to keep up with competition and increase their sales Krispy
Kreme plans to launch a line of new doughnuts, which will feature
sugar-free doughnuts, doughnut holes and mini-doughnut, rings. They
are also preparing to introduce their own line of frozen drinks
and brand of coffee beans, which they will offer in supermarkets.
USA
Today July 1, 2004
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