There are only a small handful of examples of companies who are executing well on the promise of omnichannel ecommerce through virtual brands and host kitchens in 2024. One of those is Krispy Kreme Doughnuts ($DNUT), which has been heavily investing in its hub-and-spoke model over the past decade-plus. Since former parent JAB Holdings (Peets, Keurig Dr. Pepper, Panera) brought it public in 2021 after taking it private in 2016, the brand has grown its total points of access by 40% to 13,400 locations globally. These not only include its own famous “hot light” brick-and-mortars, but also convenience stores, QSRs, grocers, cafés, kiosks, and nearly any shelf where donuts could be sold in-person or fulfilled for last-mile delivery. This program, “Delivered Fresh Daily” (DFD), ramped up significantly during the pandemic in a shift away from shelf-stable donuts towards fresh ones delivered daily to retailers fresh from a store or warehouse. In Q3 ‘23, ecommerce and DFD accounted for 35% of its $260mm US net revenues and 39% of $106mm international net revenues.