Modern Slavery Act – Transparency Statement

This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 for Krispy Kreme Holding UK Ltd and all its subsidiaries (Krispy Kreme) for the financial year ended 1 January 2017.

Krispy Kreme is a premium doughnut chain, under exclusive licence from its parent company, Krispy Kreme Doughnut Corporation, which is registered in USA. We manufacture, distribute and sell a range of approximately 16 varieties of premium doughnuts made fresh every day. Doughnuts are manufactured at our theatre stores and commissaries and distributed by us to locations throughout the UK where they are sold through a network of retail outlets (operated by ourselves) and off-premise cabinets (which operate as concessions). All of our manufacturing and retail operations are carried out in the UK with raw materials being sourced predominantly from UK suppliers, with the exception of purchases from the US parent company. However ingredients such as sugar and palm oil have their country of origin outside the UK, where the risk of modern slavery may be greater.

Krispy Kreme recognises the importance of taking action to combat modern slavery, which can take many forms such as slavery, servitude, forced and compulsory labour and human trafficking. We have assessed the risk of such practices to our workforce and businesses in our supply chain and are committed to continuous improvement of both our processes and of our supply chain accountability. We strive to act ethically and with integrity and take a zero tolerance approach to instances of modern slavery.

Within Krispy Kreme

Krispy Kreme has HR policies and standards in place to ensure compliance with relevant legislation and fundamental rights at work, including equal opportunities, minimum wage, working hours and breaks. These are provided to staff at their induction and are readily accessible via the company's intranet.

All colleagues who work at Krispy Kreme are subject to a right to work check in accordance with UK legislation. Colleagues are unable to work at Krispy Kreme unless we are satisfied that they have the legal right to do so and this process is audited regularly.

Our employment policies state that no person below the minimum legal age shall be employed and where specific workplace conditions apply, such as nightshift work, working with dangerous machinery and/or hazardous substances, no person under the age of 18 will be employed.

Krispy Kreme will occasionally use internally approved recruitment agencies, in which case the agency is required to confirm it will adhere to our Equal Opportunities and Modern Slavery policies.

Krispy Kreme encourages colleagues to report any activity they believe to be in breach of its policies and/or unlawful and the process for doing so is set out in the Whistle Blowing Policy.


In the supply chain

We use an independent purchasing agent to manage all elements of our procurement and supply chain for raw materials and we have a close knowledge of key suppliers with whom we have long-standing relationships. We are committed to improving the transparency of our supply chain and have carried out an assessment of our key suppliers' compliance with the Modern Slavery Act, with no breaches being identified. In light of the increased risk potentially associated with supplies of palm oil we have undertaken a specific review of the policies of our nominated supplier, including their use of independent audits, and are satisfied with their level of compliance and commitment to continued progress.

We have amended our contractual terms and conditions to include obligations on key suppliers to comply with the Modern Slavery Act and to notify Krispy Kreme immediately should they become aware of any breaches and will include this obligation in all new purchasing agreements in future. Suppliers which breach these obligations will face appropriate actions which could include termination of contracts.

We recognise the benefits of using ethically and sustainably sourced raw materials wherever possible and have supported the drive towards palm oil sustainability with all our supplies coming from RSPO certified sources.

This statement has been approved by the Board of Krispy Kreme Holding UK Ltd.

Mike Dowell

Chief Executive

June 2017