Krispy Kreme Signs First Development Agreement In India
35 Shops Expected to Open by 2018
WINSTON-SALEM, N.C., May 14, 2012 // PRNewswire // -- Krispy Kreme Doughnut Corporation announced today that it has signed its first development agreement in India, a regional agreement with new franchisee Bedrock Food Company Pvt., Ltd. Under the new agreement, Bedrock Food Company is expected to open 35 stores over the next five years. The stores will be located in six states in the North region of India, which includes the cities of Delhi, Jaipur and Lucknow.
Jeff Welch, Krispy Kreme President, International commented, "We are excited to partner with Bedrock Food Company in taking the great taste and experience of Krispy Kreme to the people of North India. Manpreet Gulri and his team are leaders in the QSR segment in India. Their strong industry experience and knowledge of the Indian consumer are great assets that they will be able to leverage as they bring the melt-in-your-mouth Krispy Kreme experience to the market."
"We are excited to introduce the Krispy Kreme brand to North Indians and wish to position ourselves as a premium doughnut and coffee brand," said Purwa Sinha, Managing Director of Bedrock Food Company Pvt., Ltd. "Krispy Kreme is extremely popular in Asia and we expect Krispy Kreme to be well received in India. Our experience with the Indian consumer shows Indians are very fond of sweets and believe in the concept of sharing. Coffee and doughnuts as a category has huge potential in India and we expect the market to grow quickly over the next few years. We are pleased to enter into a franchise relationship with Krispy Kreme."
The Krispy Kreme Original Glazed® doughnut can be found in over 690 stores in 21 countries, including Australia, Bahrain, Canada, China, Dominican Republic, Indonesia, Japan, Kuwait, Lebanon, Malaysia, Mexico, the Philippines, Puerto Rico, the Republic of Korea, Qatar, the Kingdom of Saudi Arabia, Thailand, Turkey, the United Arab Emirates, the United Kingdom and the United States.
About Bedrock Food Company Pvt., Ltd.
Bedrock Food Company Pvt., Ltd. is a licensed franchisee of Krispy Kreme Doughnut Corporation for the North India region and will be managed by Manpreet Gulri and Purwa Sinha. Mr. Gulri and his partners also hold the development rights for Subway in parts of North, West and South India and operate approximately 185 Subway restaurants. In addition, they are the master franchisee in India for Yogen Fruz and have businesses in the human resources and recruitment industries in India.
About Krispy Kreme
Krispy Kreme (NYSE: KKD) is a leading branded specialty retailer and wholesaler of premium quality sweet treats and complementary products, including its signature Original Glazed® doughnut. Headquartered in Winston-Salem, NC, the Company has offered the highest quality doughnuts and great tasting coffee since it was founded in 1937. Today, Krispy Kreme shops can be found in over 690 locations in 21 countries around the world. Connect with Krispy Kreme at krispykreme.com and on Facebook, Foursquare, Twitter and YouTube.
Information contained in this press release, other than historical information, should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management's beliefs, assumptions and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. The words "believe," "may," "could," "will," "should," "would," "anticipate," "estimate," "expect," "intend," "objective," "seek," "strive" or similar words, or the negative of these words, identify forward-looking statements. Factors that could contribute to these differences include, but are not limited to: the quality of Company and franchise store operations; our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans; our relationships with our franchisees; our ability to implement our international growth strategy; our ability to implement our new domestic small shop operating model; political, economic, currency and other risks associated with our international operations; the price and availability of raw materials needed to produce doughnut mixes and other ingredients, and the price of motor fuel; our relationships with wholesale customers; our ability to protect our trademarks and trade secrets; changes in customer preferences and perceptions; risks associated with competition; risks related to the food service industry, including food safety and protection of personal information; compliance with government regulations relating to food products and franchising; and increased costs or other effects of new government regulations relating to healthcare benefits. These and other risks and uncertainties, which are described in more detail in the Company's most recent Annual Report on Form 10-K and other reports and statements filed with the United States Securities and Exchange Commission, are difficult to predict, involve uncertainties that may materially affect actual results and may be beyond the Company's control, and could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements. New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on the Company. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.
SOURCE Krispy Kreme Doughnut Corporation
Brian K. Little