Jamba Juice Accelerates Movement to Asset-Light Model While Strengthening Organizational Capabilities and Processes
Jamba Teams with Capgemini as Part of Effort to Achieve 10-20% G&A Reduction Goal and Drive Accelerated Growth
EMERYVILLE, Calif.- (BUSINESS WIRE) - Aug. 25, 2014 - Jamba Inc. (NASDAQ:JMBA), a leading health and wellness brand and the leading retailer of freshly squeezed juice, today reaffirmed its commitment to accelerate its move to an asset-light model with the announcement that the Company has entered into an agreement with Capgemini, one of the world's foremost providers of consulting, technology, and outsourcing services. The agreement provides enhanced administrative tools, technology services, and capabilities for Jamba, and is anticipated to create workflow efficiencies while reducing costs as Jamba pursues a 10-20% reduction of overall G&A in 2015.
Under the agreement, specific administrative tasks, including application maintenance and development as well as finance and accounting support, that are currently being handled internally at Jamba will be transitioned to Capgemini, providing Jamba with enhanced efficiencies in key areas. The transition, which will utilize Capgemini's Global Enterprise Model1 methodology for business process transformation, is expected to contribute to the 10-20% reduction of overall G&A.
"The relationship with Capgemini is intended to provide the Company with the tools and capabilities required to support our growth plans," stated Karen Luey, Jamba EVP and chief financial and administrative officer. "This move is part of our ongoing efforts to enable rapid global growth supported by world-class infrastructure, processes and systems. We are providing strong outplacement support for affected employees and we were able to find roles within the Organization for a number of those whose positions will be transitioned."
The transition is expected to be completed by Q1, 2015. As part of the drive to an asset-light model, Jamba is also initiating an expanded franchise recruiting and development program. The Company is targeting the addition of 500 new stores in the next 5 years. Combined with Jamba's ongoing refranchising initiatives, Jamba is expected to move to an 80%+ franchise-to-company-owned model in the next 18 months.
About Jamba Juice Company
Founded in 1990, Jamba, Inc. is a leading restaurant retailer of better-for-you, specialty beverage and food offerings, which include great tasting, whole fruit smoothies, fresh squeezed juices and juice blends, hot teas, and a variety of food items including hot oatmeal, breakfast wraps, sandwiches, Artisan Flatbreads™, baked goods, and snacks. As of July 1, 2014, there were 854 Jamba Juice store locations globally. Jamba is a proud sponsor of "Team Up for a Healthy America" in the fight against childhood obesity and encourages fans to join the Team Up community of celebrities, athletes, and other leaders committed to getting kids active and involved at www.myhealthpledge.com. Fans of Jamba Juice can find out more about Jamba Juice's locations as well as specific offerings and promotions by visiting the Jamba Juice website at www.JambaJuice.com or by contacting Jamba's Guest Services team at 1-866-4R-FRUIT (473-7848).
This press release (including information incorporated or deemed incorporated by reference herein) contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations, estimates, forecasts, and projections as well as the current beliefs and assumptions of the Company's management. Words such as "believes", "expects", "appears", "may", "will", "should", "anticipates", or the negative thereof or comparable terminology, are intended to identify such forward looking statements. Any statement that is not a historical fact, and any other estimates, projections, future trends and the outcome of events that have not yet occurred, is a forward-looking statement. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore actual results may differ materially and adversely from those expressed in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to factors discussed under the section entitled "Risk Factors" in the Company's reports filed with the SEC. Many of such factors relate to events and circumstances that are beyond the Company's control. You should not place undue reliance on forward-looking statements. The Company does not assume any obligation to update the information contained in this press release.
1 Capgemini's Global Enterprise Model (GEM) is a transformation methodology comprised of 7 levers including grade, location, and competency mix, Global Process Model, technology, pricing and governance, all of which are calibrated according to each client's specific needs.
SOURCE Jamba Inc.
Jamba Juice Company
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