Krispy Kreme Doughnuts has revealed plans to seal a supply chain distribution agreement with Sysco Corporation, a food marketing and distribution company.

Under the terms of the proposed agreement, Sygma, a Sysco subsidiary, will distribute proprietary doughnut mixes, other ingredients and supplies to Krispy Kreme franchise and Company shops in the eastern United States.

Sysco subsidiary IFG will be responsible for export of Krispy Kreme goods to the 20 foreign countries in which the company's international franchisees operate.

Krispy Kreme outsourced distribution to shops in the western United States in 2008. The anticipated transition to Sysco in the eastern US and internationally is expected to take place in the second and third quarters of calendar year 2011.

Upon completion of the transition, the company will have outsourced all of its domestic and international distribution operations.

The deal means Krispy Kreme will benefit from Sysco's buying power and the size and reach of its distribution network, said Brad Wall, senior vice president of supply chain and off-premises operations for Krispy Kreme: "By completing the outsourcing of delivery of doughnut mixes, ingredients and supplies, we expect to further simplify our supply chain operations and add capabilities and services for our franchisees."

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