The managing director of Krispy Kreme has hit back at UK restrictions on where unhealthy food can be sold in stores, saying consumers can be ‘trained’ to look for his donuts in different places.
Rules controlling foods high in fat, salt, or sugar have been partially in force in the UK since October, preventing larger stores from placing these items in conspicuous places near checkouts and store entrances.
Although more restrictions are expected in the coming months, Mike Tattersfield said the North Carolina-based company will push for growth in the UK market exploring new ways to reach customers.
“You have a short-term move,” Tattersfield told the Financial Times, “but the opportunity starts to be that you just keep training your customer in different parts of the retailer and other retailers that we’re not in today. ‘today . . . We will be looking at channels to continue to maximize growth.”
“Any time you have regulations coming into effect and you change your business, customers continue to seek out what we do,” he added.
In the United Kingdom, Krispy Kreme sells its donuts in supermarkets such as Tesco and Sainsbury’s, as well as stand-alone stores.
The company, which serves 32 countries, posted $54.9 million in profit for the first quarter ended April 2, up 12% from a year earlier. Although it does not disclose UK-specific profit figures, those for its international segment fell 21% to $13.6 million, due to cost inflation.
Asked if he sees a threat of healthier alternatives to Krispy Kreme donuts, Tattersfield said he thinks people are unlikely to start consuming these items on a regular basis.
“I don’t see the world changing for kale cake for their break every day,” he said. “No disrespect to the kale, but it’s not much fun to share.”
Tattersfield’s comments underscore the challenge for the government to try to promote healthier diets and reduce consumption of foods high in sugar, salt and fat.
Dirk Van de Put, managing director of Mondelez, which owns confectionary brands such as Cadbury and Milka, said in January that although the UK rule change had deterred some “impulse buying”, sales were “holding up quite well” so stores were finding secondary locations to promote the products.
The effect is “far from the magnitude that we could have reached and I expect that [as] the consumer gets used to this new store configuration that volume growth will return,” added Van de Put.
In addition to the new location rules, the Department of Health and Social Care plans to implement restrictions on volume promotions for specified foods – including “buy one, get one free” offers – in October.
The rule was postponed for a year to “allow the government to review and monitor the impact of restrictions on the cost of living in light of an unprecedented global economic situation,” the department said in May. last.
There will also be restrictions banning advertisements for foods high in sugar, salt and fat on TV before 9 p.m. and paid advertisements online, taking effect in 2025.
Krispy Kreme was relisted in 2021 following its 2016 acquisition by European investment group JAB Holding.
In the United States, the company is expanding its channels by piloting in 160 McDonald’s restaurants.
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