Krispy Kreme finds “depression era” price for coffee doesn’t pay

Last fall Krispy Kreme tried to grab some market share in the Northwest by rolling back coffee prices to “Depression era” levels. The “New Deal” marketing effort cut prices from for a small from $1.45 to a nickel, mediums went from $1.65 to a dime and larges from $1.75 to 15 cents. It was A) a nice thing to do in this economy and B) KK figured that it made fiscal sense for them because they make most of their money from donuts not java.

11515Drink-Coffee-Poster At first things went well, very well. In March sales of Lutheran gasoline (mocha) were up 229 percent over pre-price cut. Melissa Allison, who covers coffee for the Seattle Times (that’s gotta be like having the philosophy beat in ancient Athens), says cheap joe may not be enough. Turns out people weren’t buying the baked goods needed.

Today Gerard Centioli, CEO of Icon LLC in Seattle, which co-owns (with Krispy Kreme) 12 stores in the Northwest and Hawaii, tells Allison (does she ever get confused about which of her names goes first?) that two of the stores now require you buy something baked in order to get the coffee deal.

"They were experiencing a level of coffee-only purchases which will cause us to either require a purchase or discontinue the program. If the test becomes permanent, we will develop marketing materials to communicate the change to our guests.”

Still a heck of a deal. Now all we need is a good five cent cigar to go with it.

Krispy Kreme forced to eat half-baked marketing scheme

Last week, the kreme hit the fan when

Do-Vo and Vo-Vo An Australian biscuit company has threatened legal action against US chain Krispy Kreme if does not stop selling its Iced Dough-Vo doughnut. Arnott believes the product is almost identical to its own Iced Vo-Vo biscuit, and breaches trademarks registered in 1906.

Krispy claimed the confection was meant as a tribute to the beloved Vo Vo.

This resulted in some of the best headlines I have ever read:

What about: Krisp Kreme donut turns to humble pie

 

As you can tell the Aussies take their Iced Vo Vo’s very seriously: In his November 2007 victory speech, Prime Minister Kevin Rudd jokingly urging his campaign team to have a strong cup of tea with an Iced Vo Vo before getting to work.This reportedly led to skyrocketing Iced VoVo sales, prompting Arnott’s to send a shipping pallet of the biscuits to the Prime Minister’s office in Canberra’s New Parliament House.