Jamba, Inc. Announces Strategic Exit from JambaGo Platform
Company Committed to Profitable Growth through Focus on Retail Store Performance and Development
EMERYVILLE, Calif. - (BUSINESS WIRE) - Oct. 5, 2016 - Jamba, Inc.(NASDAQ:JMBA), a leading lifestyle brand with a passion for making healthful living fun, today announced plans to exit the Company’s automated JambaGo platform by the end of fiscal year 2016.
The decision to exit JambaGo comes during a period of transition in which the Company has onboarded a new leadership team focused on re-evaluating all strategic priorities. The Jamba team has committed to strengthening its core retail business, improving franchise profitability, accelerating ongoing global development and updating the Jamba Juice brand position. After a detailed review, the Company determined that the JambaGo platform does not align with these objectives and is not a viable option through which to drive long-term profitability and shareholder value.
“Following a thorough review of the platform’s growth potential, resources required to drive meaningful sales, alignment with the brand’s iconic positioning, and JambaGo’s ability to maximize value for shareholders, we decided to exit the JambaGo venture,” said Dave Pace, Chief Executive Officer. “I’m encouraged by the progress our newly formed leadership team continues to make and believe this strategic exit will allow us to focus on our retail business as well as our previously stated, five core strategies.”
JambaGo is a smoothie system that can be formatted as both a self-serve unit for placement in non-traditional sites like convenience stores, hotels or colleges, or as a behind-the-counter format for use in K-12 schools and cafeterias.
As of June 28, 2016, the JambaGO® business consists of approximately 2,000 licensed units located across the United States. The Company will provide additional context on the exit of this platform on the third quarter earnings call in November.
About Jamba, Inc.
Jamba, Inc., owns and franchises Jamba Juice® stores through its wholly-owned subsidiary, Jamba Juice Company. Jamba Juice Company 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, and a variety of food items including, hot oatmeal, breakfast wraps, sandwiches, Artisan Flatbreads™, Energy Bowls™, baked goods and snacks. As of June 28, 2016, there were 885 store locations globally. There were 68 Company-owned and operated stores and 751 Franchise-operated stores in the United States, and 66 Franchise-operated international stores. Jamba Juice Company expanded theJamba® brand by direct selling of consumer packaged goods (“CPG”) and licensing its trademarks. CPG products for at-home enjoyment are also available online, through select retailers across the nation and in Jamba® outlets in the United States.
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).
SOURCE Jamba, Inc.
ICR for Jamba, Inc.