Brewster resigns as Krispy Kreme c.e.o.
January 07, 2008
by Eric Schroeder
WINSTON-SALEM, N.C. — The board of directors of Krispy Kreme Doughnuts Inc. on Monday elected current chairman James H. Morgan to the additional positions of president and chief executive officer. He succeeds Daryl Brewster, who has resigned for personal reasons, but will remain with the company until the end of January to assist in the transition.
A grain-based foods veteran who previously helped key growth at Kraft Foods Inc., Mr. Brewster was named c.e.o. in March 2006 to help lead Krispy Kreme through a turnaround, but the company has continued to struggle. In February 2007, the company held its first shareholders meeting in two years, and Mr. Brewster said at that time that while still challenged, the company was showing signs of stability. That stability included resolution of important legal matters, restoring positive cash flow, and development of a pipeline for new products. But this past December, the company said its quarterly sales tumbled and it expected more franchised store closings ahead.
Mr. Morgan, 60, has been a Krispy Kreme director since 2000, and was elected chairman of the board in 2005. He most recently was chairman and chief investment officer of Covenant Capital, L.L.C., an investment management firm he founded. Earlier, he was chairman and c.e.o. of Interstate/Johnson Lane, an investment banking and brokerage firm.
"I look forward to my expanded role with Krispy Kreme and to working with the company’s management team and transformed board of directors to address the current challenges that face us as well as ongoing opportunities," Mr. Morgan said.
Also on Monday, Krispy Kreme said all of its products sold in the United States now have zero grams of trans fat. The company said it has been piloting zero grams trans fat products across the country for the past several months.
The chain’s decision mirrors a move to erase trans fat by many fast-food and quick-service restaurant chains last year.