Krispy Kreme plays down impact of UK rules on unhealthy foods
The boss of Krispy Kreme doughnuts has shrugged off the impact of new UK regulations on unhealthy food in supermarkets, insisting that consumers could simply be “trained” to look elsewhere in shops for their sweet treats.
Major retailers have been banned from placing high fat, sugar or salt items near prominent store locations such as checkouts in a shake up of food rules in partial effect since October.
But doughnut kingpin Mike Tattersfield played down the impact of the new rules.
“You do have a short-term displacement but the opportunity starts to be that you just continue to train your customer in different parts of the retailer and other retailers that we are not in today,” Tattersfield told the Financial Times, adding that “customers still continue to look for what we do.”
He said: “I don’t see the world changing to kale cake for their break every single day. No disrespect to kale, but it’s not that much fun to share.”
Restrictions are expected to increase in coming months and years – including on buy one get one free deals and TV ads – Tattersfield said he would still be pushing for growth in the UK.
Krispy Kreme’s products are on sale in supermarkets like Tesco and Sainsbury’s as well as its own stores, while the company retails in 32 countries worldwide.
The North Carolina-based company relisted in 2021 after a 2016 buyout by investors JAB Holding, and is expanding in the US by launching sales at 160 McDonald’s branches.
First quarter profits were up 12 per cent on last year, with $54.9m – but while UK specific figures are not disclosed, international profits fell 21 per cent to $13.6mn, due to inflation.