The demise of the donut?

As we approach the new year, and the various resolutions that are taken on every year, you would think that donut sales would not stand a chance in January. Yes they take a bit of hit fresh into the new year, but they ramp up quickly there after.

Although I am not familiar with "Bimbo" donuts, they are at the top of the heap as far as donut sales go; how many donuts could they possibly sell you might be wondering? How about 251 million of them this year! That's almost a donut for everyone in the U.S. But Bimbo is not the only one selling these "comfort foods." In fact the top 5 donut companies sell approximately 400 million donuts a year---not including Dunkin Donuts, the top 10 sell more than 500 million donuts. Since I don't eat donuts, I have transfered my allotment to anyone who wants it.

I actually found this pretty amazing but if you think about it, as the recession has taken hold many Americans have a greater need for "comfort foods." These are the foods that you eat when you know you shouldn't be, but do so because they make you feel good. Jenny Craig, Weight Watchers, and other weight loss companies know about this trend and they count on it happening every year---for them it means business.

A while back, and it was not too long ago, Krispy Kreme expanded outside of North Carolina; this is where the first Krispy Kreme was consumed back in 1937. When they first came to Chicago the lines and word of mouth were unreal. This is a donut, but you would think it was a pot of gold being given away. It was a bit of a surprise as we were in the middle of the health craze and sure enough dozens of donuts are being purchased and consumed for breakfast, lunch, and dinner. I have to admit even though I gave up donuts a long time ago, I had one. They were pretty good but not good enough to be a part of my regular diet. I never had one after my first.

Krispy Kreme's marketing is really smart. They work with the community (through school functions and not for profit events) to make their product well know and available. But what happened was what happens to a lot of companies who expand. Like a waist line they think there is always another notch---but the belt bursts. We had a store by our house and it closed up, Krispy Kreme donuts were available at grocery stores, gas stations, and practically every retailer that sold food but no longer as the demand went away. They wanted to be another Starbucks. But something got in the way---weight gains.

That's when the Atkins diet took hold...even though it was more of a fad, they did bring Americans back into weight watching, for a while.

The photo above was taken several years ago of my daughter. Krispy Kreme gave out baking hats to kids (in addition to free donuts when you were standing in line waiting for your dozen or two hot glazed to be handed over the counter) and that's how they built their business. One thing they forgot about the American pallet is it changes. But, even though it has changed, you can tell by the hundreds of millions of donuts sold that people will eat what they want, when they want it. Last year Krispy Kreme still sold 100 million donuts.

Thanks for stopping by.