Friday, June 3, 2011

Why Britain fell in love with Krispy Kreme doughnuts?

Outside air smells sweet and I am dragged through the doors of my nostrils. The Enfield branch of Krispy Kreme donuts is cavernous, decorated with subway tile and retro ice cream colors, an attempt to recreate a piece of Americana, instead of a hut in a large retail park next to the A10. The background music in the building is Elvis Presley, a man who knew a thing or two about the donuts.

This week, the American chain of North Carolina announced it would double its number of outlets in the UK to 100 over the next five years on the back of sales growth, with sales 12.6% of serving 5 million customers. The next will open in Leeds next month.

What is most surprising is how each new store is received. When Krispy Kreme opened its latest outlet in Cardiff in April, his 46th in the UK, over 1,000 people waiting two hours for a donut. A couple, even during the night camped in front of the queue. "I have an honest life," the Londoner, 32, told a newspaper in Wales, before moving on to explain what his hobby is to go to the opening of each new store Krispy Kreme . He'll be busy for years to come.

The company has an extensive and constantly evolving fritters - key lime pie, chocolate and cheese flavors of mango passion dreamcake are all present - and are displayed in glass cases like jewels in a jewelry store.

Here in the UK, are stored in Harrods and Selfridges, a masterstroke of marketing, because there is also a less glamorous detail. You can find kiosks in gas stations from the highway and in Enfield - the first store in the UK independent after opening a concession in Harrods much hype - Shares in Krispy Kreme parking lot of a McDonald's, where people sit in their car fetid gum. The store even has a drive-through, for when you really can not bother to walk a few meters to the meter.

The brand is steeped in American mythology fascinating, aided in part by the small appearances in television shows such as Friday and the City and The Sopranos, with fans and advertising like Madonna and Beyonce. It is an excellent example of a brand, "said Don Williams, CEO of brand consultancy Global IP. "He has a strong personality, its heritage is almost palpable, and yet not feel it was the sale of businesses seems wherever he has always been a bit of Americana -. old the same way Coca Cola has its roots in this world. Note the similarities soon. "

But why they do so well in the UK, at a time when anti-obesity message seems to be everywhere? "There are two massive trends in food today - one is health, the other is the indulgence, and both are of similar size," said Rob Ward, an expert in food marketing. "It's a bit of a myth that we all salad rider;. We also carry food to feed us to treat the symptoms of a state of economic uncertainty is to go for comfort food that gives you instant gratification. "

Fats and sugar - the two pillars of comfort food. Classic Glass Company donut contains 217 calories and 13g fat, cookies and donuts Kreme has 380 calories and 17g fat. In 2008, the company announced it was eliminating trans fats, processed fats toxic clogging of arteries, but there are still 0.5 g (food labeling allows U.S. companies to "round up" This explains why, according to the company, sometimes "zero trans fat"). "It's something we continue to work," says Judith Denby, Marketing Director UK Krispy Kreme.

"We are a trans fat free donuts test in a couple of our stores, and hopefully it will be rolling." Not even the donuts are the worst - Krispy Kreme also make drinks, sherbet lemon and your refrigerator has been widely accused of incredible 980 calories and 40g fat. (Denby did not hear: "I presume it was something the United States.")

Of course, nobody can ignore that, eventually, donuts are not a healthy snack. "They are certainly part of treatment, not something to be taken regularly," said Sian Porter, nutritionist consultant and spokesman for the British Dietetic Association. "Besides, look how they sell - they offer discounts for cash, so it is the temptation to buy more than you want, you can encourage people to eat more ".

I was attracted to the site of the Krispy Kreme store at Enfield. "Come participate in fun games and celebrate with us," he promised in his list of store events, "to entertain the children in this middle ground." Games? fried foods? The glow of indignation hypocritical how to market calorific treats children? What a great way to spend an afternoon. It is a disappointment. There is no sign of game and I do not place a child. Two men in work shirts and sit near the window, eating a big box of donuts on the table in front of them. When they leave, a group of teenagers in their place.

At one end of the store is a glass wall, through which you can watch a small factory to work as donuts are made. Gobbetti ground swell and are then gently drop into hot oil. They bob merrily few minutes before being collected by a robot. Proclaims a sign above the present "Krispy Kreme Theatre." Interestingly, but nothing happens - waiting Godough if you want.

In fact, "said Rob Ward, is an essential part of the brand. "Another key trend in food is trust, because there was a huge break. What you see is a demonstration of the product in, and when you see that you trust the most."

Meanwhile, the recipes are a closely guarded secret - and I do not see any documents with nutritional information in the store. In addition, emphasis on freshness means those selling donuts are always thrown (which would be "irresponsible" to give them, Denby said, because they are "a pleasure and not a meal.")

The team behind the counter are so nice, I am sure to buy two donuts in a "special arrangement" where I wanted to buy one. "You can have a house," said the woman behind the counter with a smile as sweet as caramel. "One thing that drives me crazy to Krispy Kreme," says Ward, is when I go with my children, how he tries to get them to buy a dozen, when I only want two. "Supersize element as a father he is annoying and is something that companies like McDonald's, walked away."

I am stunned by the choice but to settle on a Strawberries & Kreme, a bagel with a creamy center rocker. It feels good, but I can eat half before I felt a little sick.

There is no doubt that other people find these donuts irresistible. I have a colleague who takes a long time for this store, "At midnight several times a month, so I eat a dozen Yes -.., -. And a dozen have defects sugar horrible" She had, she explains euphemism, "a slight dependence." A visit to the site of UK Facebook shows people begging them to open stores in their region, with the fevered desperation.

The exterior of the store in Enfield, two teenagers are paying three dozen donuts for a birthday party. "Nobody else donuts like these," said the 18-year-old Amma Osei-Owusu. A man in shirt and tie with a box for your car. "It is a pleasure for the customer," says Chris , a sales manager for a textile company. Ah, the sweet taste of corruption. He laughs. "I call this entertainment business. I do not normally spend that much for a donut for me. They are not cheap. "From £ 1.20 for a donut alone, more than twice the price of your average British version.

Even in the absence of "party games fun," the company seems alive, but the recent history of Krispy Kreme should be, according to some analysts, a case study of business school and around ruin their image. In 1930, Vernon Rudolph bought a recipe from a French pastry chef from New Orleans yeast donuts, and in 1937 he began selling them in local supermarkets, Winston-Salem, North Carolina.

The sweet fragrance of the plant has attracted customers, so they cut a hole in the wall to serve and cut out the middlemen. In the 50s, there were several stores, and Rudolph had opened a factory to make mixing screw for delivery today, the company made a significant portion of their money by selling bags of the combination of their franchises (in the United Kingdom All stores are company owned, but the United States, most are franchises). In the late 90s, the company had gone national, and in 2000 was placed on the stock market. Over the next two years the company grew rapidly, including internationally. They spent money with little or no advertising, relying on word of mouth and gifts. In the weeks before its debut Harrods concession, the company regularly sends boxes of donuts for the office of the newspaper where I worked. This is one of their marketing gimmicks entrenched. Another is the fundraising. The company allows people to buy boxes of donuts at cost and then sell them to benefit a good cause, many schools and children's groups such as Scouts and Guides. It's a brilliant idea - raise money for charity when he began selling the children for other children, mint and a whole new generation of parents harass donut eaters. "I ordered 120 donuts on sale at the school and they went out in 40 minutes," said a statement on the website of the British, "I certainly do it again!"

"This is a marketing company," said one shareholder, Erskine Bowles, a North Carolina banker and former president Bill Clinton employed, told Fortune magazine in 2003. "Scott Livengood [then chief executive] told me that already financing a guy grabs Krispy Kreme to sell each stock. "In 2003, the stock reached nearly $ 50.

Then it started to go wrong. In 2004, the first loss of the company was attributed to increase in low-carbohydrate Atkins diet, but it was much more than that. There was a long list of bad business decisions, and certain accounting practices led to Livengood investigated by federal security of America and Exchange Commission. The stores were closed, the franchisees filed for bankruptcy and sales continued to fall.

The price of expansion is ubiquitous - Krispy Kreme donuts are now sold in supermarkets and service stations - which took a little luster off of his image after the rare and exclusive. The window displays in my local Tesco, for example, has been taking a little luster to the brand, but soon began to look a little tired, but disappeared a few months later. In 2009, the share price reached a historic low of $ 1.

Today the company is in better shape. Last year, only in the United Kingdom, has opened six new stores and had sales of $ 33.4 million, compared to 29.7 million pounds last year. Good news for the company, it is not so great for new anti-obesity activists, particularly those interested in how to popularize among children - throughout the week has been compromised and promotion activities over makeup decoration in its stores.

"The government must regulate to protect children against the marketing of junk food, such as voluntary approaches are clearly not working," said Charlie Powell, campaign director of the Children's Food Campaign. "The fight against childhood obesity continues, despite efforts of food companies like Krispy Kreme. " The answer to Krispy Kreme is not sweet like donuts. "This is a rare luxury," says Judith Denby. "We believe that everyone deserves a treat from time to time."