Krispy Kreme Considers Global Strategy

R A L E I G H, N.C., Jan. 2 -- New York and L.A. swooned over Krispy Kreme doughnuts and now the company that refined the simple pleasure of hot, sticky snacks is thinking about going global.

The Winston-Salem company said late last week it has hired anexecutive to plot its global expansion strategy and has entered apartnership to expand into Canada — Krispy Kreme’s first forayoutside the United States.

Krispy Kreme Doughnuts will take a 34 percent share of theCanadian operator, Krispy Kreme Doughnuts Eastern Canada Inc.,which will open 32 stores over six years in Canada’s easternprovinces, including Ontario and Quebec.

The decision to hire Donald Henshall, 38, as president ofinternational development while the company is still in the earlystages of expanding across North America was a response to interestfrom potential foreign partners, president and chief executiveofficer Scott Livengood said.

“Hiring Don at this early stage gives us the opportunity torefine our global strategy and develop the capabilities andinfrastructure to support expansion outside the U.S.,” he said.“It is also important to point out that we are structuring theorganization in a way that ensures no loss of focus on our domesticmarket opportunities.”

Henshall will join the company in February from footwear andapparel maker Overland Group Ltd. in London. He previously waspresident and chief executive of clothing maker Diesel USA Inc.

John Glass, who tracks the company for Deutsche Bank Alex.Brown, said he though the company would do well as long as KrispyKreme keeps its focus on North America, where opportunities arebest.

The first overseas doughnut shop may be several years away, headded.

The company’s further expansion plans target U.S. cities withmore than 100,000 households. Krispy Kreme said it has concluded anagreement with a partnership group that will open 16 stores overthe next five years in Massachusetts, Rhode Island and Connecticut.New England was the last region of the country Krispy Kreme hadtargeted.