Krispy Kreme increases spend in growth bid

Krispy Kreme is to increase its marketing activity after hailing the role it played in a 26% rise in revenue last year.

Krispy Kreme

The doughnut brand’s revenue reached £42.2m in 2011 from £34.4m in 2010. The company says this was lifted by outdoor and experiential marketing initiatives, geographical expansion and new agreements to open outlets in Welcome Break and Roadchef service stations.

Sales from outlets open for a year or more rose by 3.5%.

According to Krispy Kreme chief marketing officer Judith Denby, marketing spend will increase “significantly” in line with revenue growth, which will be invested in a raft of marketing initiatives including QR code and augmented reality money-off promotions. Experiential activity and product development will also be increased.

An above-the-line push in cities including Manchester, Portsmouth and Bristol will mark the brand’s first regional campaign outside London, which will run throughout April.

The company is also planning activity to raise awareness in the north-east and Scotland, where planned new openings will increase its UK presence from 46 to 80 locations by 2015. It also has more than 400 branded cabinets in supermarkets such as Tesco.

However, Denby adds that the company will “probably not repeat” its discount promotions after admitting that it was the one part of its marketing mix that didn’t generate the return on investment it was looking for.

The company was the subject of £25m management buyout by joint managing directors Rob Hunt and Richard Cheshire, backed by private equity firm Alcuin Capital.

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