In the world of big business acquisitions, has there ever been one as hot and fresh as this? In a $1.35 billion dollar deal, JAB Holding is buying Krispy Kreme.
According to CNN, Krispy Kreme will emerge from the deal as a private company and keep its corporate headquarters in Winston-Salem, NC. This is certainly good news for the company, as sales have been slipping in recent years. Customers just aren’t buying as many prepackaged boxes in grocery stores, and that’s led to falling sales across the board.
Most market watchers and consumer grocery experts are blaming changing customer eating habits for the drop in prepackaged sweets. Hershey’s recently acknowledged that trend by purchasing and developing a line of snack bars based on a higher protein “energy” formula.
Donuts remain incredibly popular, though, so it’s safe to assume the new ownership will want to focus on driving more people to their donut shops while streamlining the preparation process.
This deal illustrates a powerful reality in public relations. You need to see what the market is doing and extrapolate where it’s going long before it actually gets there. Business models can be tough to change, and infrastructures can be difficult to shift. Sure, it looks easy on paper, but if you’re not ready to change, the actual transition can be very difficult.
Additionally, if you take your eye off the consumer market, it’s tough to build a PR plan that connects with the people who are actually being presented your product or service. Well, it’s easy to put one together, but good luck building a plan that produces the results you need to keep your brand growing.
Regardless of how logical this sounds and how easy it is to understand, far too many companies get comfortable and complacent. They read what you just did and nod their heads. Sure, that makes sense, and you can bet it will happen to somebody…just not them. This is dangerous – and contagious – thinking. If you’re not prepared to adapt to the market, and you don’t realize when that time has come, you are setting yourself up for failure.
Here’s one more delicious tidbit about this story… The Krispy Kreme deal comes on the heels of JAB’s recent purchase of Keurig Green Mountain. Coffee and donuts? Either someone has some powerful cravings, or you can expect some crossover marketing in the very near future.
5W Public Relations is headquartered in New York City – with offices in Denver and Los Angeles.