Krispy Kreme to Make Low-Carb Doughnuts

May 26, 2004

If this is inappropriate, I am sorry. Just thought it was interesting.

Wed May 26, 4:41 PM ET

By EMERY P. DALESIO, Associated Press Writer

WINSTON-SALEM, N.C. - Krispy Kreme Doughnuts Inc. is prepared to adapt to the

low-carb dieting phenomenon it blames for a drop in sales of their sugary

snacks, the company's top executive said Wednesday.

" The way we're looking at it is we're going to assume that it is " here to stay,

Livengood, chief executive officer of the doughnut-maker, said at the

company's annual meeting. " And we make our plans and do things in a, call it a

worst case scenario. I think there is always a real possibility that people are

going to decide a balanced lifestyle is appropriate for them and the dynamics

will change again.

" But on the other hands we're not going to take anything for granted. "

Krispy Kreme reported Tuesday that it lost $24.4 million in the first quarter,

its first quarterly loss since going public in 2000. The company's stock has

fallen by about a third in the past month.

The company will continue expanding overseas, operate more efficiently and

introduce new products to attract customers who aren't going low-carb, Krispy

Kreme executives told the about 220 shareholders who came to the meeting. Most

seemed sympathetic to the challenges facing the company.

Grocery stores will start selling bags of Krispy Kreme coffee to brew at home

and the company's doughnut shops will start selling a low-sugar doughnut and

frozen drinks this year.

Overseas expansion will focus on Asia with the first new stores in South Korea

(news - web sites).

Krispy Kreme shares fell 23 cents to close at $19.65 Wednesday on the New York

Stock Exchange (news - web sites).

Les

" I wish there was a knob on the TV so you could turn up the intelligence. They

got one marked 'brightness' but it doesn't work. " --Gallagher

Recommended Posts