Jamba Announces Strategic Priorities Under BLEND Plan 3.0
- January, 17 2013
Jamba Juice Company (NASDAQ:JMBA) reiterated fiscal year 2012 guidance, including Company comparable store sales guidance range of positive 4% to 6%(1). The Company also released its “BLEND” Plan 3.0, outlining strategic priorities and initiatives for 2013 that will position the Company for transformational growth and increased shareholder value.
“Jamba performed very well in 2012 against our BLEND Plan 2.0 strategic priorities that accelerated our growth as a healthy, active lifestyle brand through product and menu innovation, engaging marketing programs, strong retail growth in the U.S. and globally, new formats and store concepts, expansion of our consumer products platform, and an ongoing pursuit of new ways to reduce cost and improve productivity,” said James D. White, chairman, president and CEO, Jamba Juice Company.
“We believe 2012 provides an excellent foundation for accelerated growth and continued progress in transforming Jamba. Our new BLEND Plan 3.0 provides continuity and a blueprint for focusing our resources. Importantly, we will implement initiatives that build total brand value through multi-channel brand building, product and menu innovation, store format and design and leveraging unique partnerships to extend the enterprise. We will refresh and remodel our stores to provide a superior customer experience that will feature on-trend fresh juices, smoothies, and complementary menu extensions served by skilled, knowledgeable associates.
“We will also leverage a range of formats to grow our global footprint with accelerated growth for JambaGO™ , limited menu Smoothie Stations, and international units. We will expand the reach of our Jamba-branded Consumer Package Goods (CPG) with innovative products and broadened business partnerships. And, we will strengthen our organization, improve our efficiency, and enhance our productivity and profitability,” Mr. White concluded.
Brand Building and Total Innovation
Jamba’s focus on initiatives that build total brand value though multi-channel brand building and total innovation, include consumer loyalty and engaging marketing programs and partnerships. On-trend specialty beverages and new product platforms will address consumer health and wellness needs across all dayparts.
Jamba will continue to develop integrated programs, like their Master of Blending Arts training that will help deepen and broaden the health and wellness knowledge of the Jamba workforce across the system. The development of relevant partnerships and programs will continue to drive the Fight Against Obesity and encourage healthy active lifestyles.
Expand Growth Initiatives
Over the past three years, the Company has made significant accomplishments in transitioning to a franchise-oriented organization. At the close of the fiscal year, 473 of 774 stores were franchise-owned; 301 were company-owned and operated stores. Internationally, Jamba experienced accelerated growth ending the year with 35 franchise stores in three global markets. It will pursue new international markets for global growth in 2013.
Jamba also launched two new flexible formats, JambaGO™ and a limited menu Smoothie Station, that facilitate rapid expansion of healthy menu options into K-12 schools and entertainment and convenience venues, respectively. Both store formats will be expanded significantly in 2013. Jamba will continue to drive best-in-class economics across all store formats. It plans to accelerate franchise growth by deploying a new integrated business model for growth. In addition, new juice bar concept stores, launched in 2012, to extend Jamba’s juice offering will be incorporated in the remodeling and refreshing of up to 100 company stores. The overall effort will provide a more engaging, fresh, contemporary, and fun experience for guests.
New Product, Partners, Channels, and Markets
During 2012, Jamba acquired Talbott Teas, a specialty lifestyle tea brand. It also acquired the intellectual property for their energy drink, which the Company is now expanding into new markets, particularly the West Coast. In 2013, Jamba will increase consumer touch points with innovative branded products in relevant categories that will extend the product portfolio into new channels and markets. The Company also plans to put in place a new business model for the manufacture and distribution of Jamba-branded products that will accelerate the global growth and success of their CPG program.
Drive Enterprise Efficiencies
At the close of 2012, Jamba had launched several technology enhancements to improve the customer experience, enhance speed of service and drive productivity at store level and across the enterprise. New ways to further reduce costs and drive productivity are planned for 2013. As it builds its supply chain into a global competitive advantage, Jamba will pursue and leverage existing and new partnerships to drive greater efficiencies and effectiveness. Improving store economics, including labor, COGS/distribution, occupancy, and store operations, through disciplined cost control and outlier management, will continue to be a focus for the Company.
Outlook for 2013
The Company expects to achieve the following results for fiscal 2013:
- Deliver positive company-owned comparable store sales of 4%-6%;
- Deliver store-level margin of 20%;
- Achieve income from operations of 2.5-3.0%;
- Deliver CPG revenue of $4 million-$5 million;
- Develop 60-80 U.S. and international locations;
- Add 1,000 JambaGO™ served locations; and
- Add up to 100 Smoothie Stations.
Logos, product and company names mentioned are the property of their respective owners.