WINSTON-SALEM, N.C. — Krispy Kreme Doughnuts, Inc. said it is entering a supply chain distribution agreement with Sysco Corp. under which Sygma, a Sysco subsidiary, will distribute proprietary donut mixes, other ingredients and supplies to Krispy Kreme franchise and company shops in the eastern United States.
Additionally, Sysco subsidiary IFG will be responsible for export of Krispy Kreme goods to the 20 foreign countries in which the company’s international franchisees operate.
Krispy Kreme outsourced distribution to shops in the western United States in 2008. The transition to Sysco in the eastern U.S. and internationally is expected to take place in the second and third quarters of calendar year 2011, Krispy Kreme said.
The company said it will continue to make its proprietary donut mixes and concentrates at its mix manufacturing facility in Winston-Salem, N.C. As part of the proposed transition, the Winston-Salem facility will supply mix products to Sysco, as well as to Krispy Kreme’s West coast distribution partner, for delivery to Krispy Kreme shops, and to contract mix manufacturers domestically and abroad.