Jamba Juice

Part
01
of eight
Part
01

Jamba - Company Background

In just shy of 30 years, Jamba has grown from a single store with a unique value proposition to an international conglomerate of corporate and franchise-owned stores. While Jamba's concept was promising from the beginning, the growth story of the company is one that occurred over many years and through multiple strategic moves.

Current State

  • As of 2018, Jamba operated in the US (802 locations), Indonesia (5 locations), the Middle East/UAE (8 locations), the Philippines (27 locations), South Korea (24 locations), Taiwan (5 locations) and Thailand (2 locations), for a total of 873 stores worldwide.
  • Most recently in 2018, the company reported full-year revenue of $70,926,000, a net loss of $2.742 million and a decline in full-year same-store sales of 0.4%.
  • Notably, Jamba's stock had fallen 23% during the twelve months preceding its most recent annual report in response to the retailer's more recent struggle with profitability.
  • Meanwhile, Jamba engaged Zimmerman as its integrated agency partner in 2015 and Finn Partners as its PR and social media agency of record in 2014, with Zimmerman and Finn Partners continuing to promote these relationships through their respective websites.
  • Additionally, Jamba also appears to be leveraging Praytell Agency for ad hoc press releases and similar media announcements.

Growth Story

  • Jamba originated in San Luis Obispo, CA in 1990 as a small juice shop named Juice Club, with the premise of making it easier to eat healthy.
  • The first location is credited to Kirk Perron, who founded the company alongside Joe Vergara, Kevin Peters and Linda Ozawa Olds.
  • Notably, within just two years, Juice Club was already earning a profit, and began expanding through the franchising model due to a lack of funding opportunities.
  • By 1994, Juice Club had 16 franchises, and began receiving attention from venture capital funds including Technology Venture Investors (TVI) and Benchmark Capital.
  • Shortly thereafter, the company completed its initial $3 million round of funding, followed by a later $19 million funding round supported by seven venture groups.
  • The next major milestone for Jamba was its renaming to Jamba Juice in 1995, alongside the relocation of its corporate headquarters to San Francisco and a significant expansion in corporate headcount.
  • By the next year, in 1996, Jamba had grown to 30 stores, grew to almost 60 stores in 1997 and then further expanded through a partnership with Whole Foods Market.
  • In 1999, Jamba saw its most significant growth yet, with the acquisition of its major competitor, Zuka Juice, alongside an expansion of the Jamba menu with its Souprimos soup line, among other additions.
  • Since then, Jamba continued its steady expansion of stores and menu offerings and, most recently in 2019, Jamba changed its name from Jamba Juice to Jamba.

Research Strategy

Please note, for the purpose of this analysis, a press release from 2014 and an article from 2015 were included to highlight the events surrounding Jamba's appointment of its agencies of record. Although all other research in this review is from 2018 and 2019, it was deemed reasonable and appropriate to include media coverage and/or announcements from the time that Jamba's agencies of record were appointed in order to gather the full extent of Jamba's contracted relationship with these two providers. Please also note, more recent research was additionally included to validate that these organizations remain Jamba's agencies of record more currently.
Part
02
of eight
Part
02

Jamba - CMO

Shivram Vaideeswaran is Chief Marketing Officer at Jamba Juice Co. He has a vast experience in marketing since he has worked in several companies as discussed below. He has won four awards and honors.

Experience

  • Shivram Vaideeswaran is Chief Marketing Officer at Jamba Juice Co. He currently lives in the Greater Atlanta Area.
  • He was the Chief Marketing Officer Blaze pizza, LLC from September 2016-January 2019. He created the “Blaze Instantly” omni-channel strategy, which helps guest gain immediate access to brands across by leveraging technology platforms including mobile app, phone ordering, 3rd party delivery, online ordering, and social media.
  • He was the vice president of marketing of Tender Green from January 2017-september 2017. He led the strategic launch of the Tender Greens rebrand.
  • Head of Global Marketing and Communication since February 2014 – January 2017 at Taco Bell. He was a Senior Brand Manager in the same company from September 2012 – January 2014 and a brand manager from October 2010 – September 2012.
  • Shivram Vaideeswaran was the management consultant, Bearing Point June 2005 – July 2006. He Increased profitability via data extrapolation from customer numbers and revised forecasts to increase costs savings for the new management tool at the U.S. Postal Service.
  • He was a sale analyst at Hecht from July 2004 – May 2005.

Education

  • He studied at Northwestern University and earned his master’s degree in Integrated Marketing Communications in 2007.
  • Shivram Vaideeswaran earned his undergraduate degree in Marketing, Logistics, and Supply Chain Management from the University of Maryland College Park.

Hobbies

Awards and honors

Social Media Profiles

Skills and Endorsements

Research Strategy

The research team searched for Shivram Vaideeswaran background information in his social media accounts like Linkedin and twitter and only found information on his professional background, experience, awards, hobbies and where he studied; however, the research team could not find any information on his background, where he grew up or his family. The research team also looked for information in various media sources, in interviews and events he attended and addressed and only obtained information on his professional and educational background, but no information on his background, where he grew up or his family. The research team also searched for information on the various companies he worked at for information on his background, where he grew up and his family, but only found information about his professional background, experience, educational background, hobbies, interests, awards, and social media profiles.
Part
03
of eight
Part
03

Jamba - Recent Press

Jamba, Inc. formerly known as Jamba Juice is a company that specializes in processing blended juices, smoothies and like products. Its headquarters is in Texas, USA with more than 800 locations globally. Focus Brands, Inc. acquired Jamba in September 2018, a merger that has greatly accelerated Jamba's popularity.

Acquisition of Jamba by Focus Brands

  • On September 13, 2018, the Atlanta-based Focus Brands, Inc. a globally renowned developer of diversified food service brands declared it had fully taken over the ownership of Jamba, Inc.
  • The Jamba CEO, Dave Pace, announced they were happy with the acquisition. He was confident it will fast track the company's expansion and enhance both employee & customer experience.
  • The acquisition is estimated to be valued at $200 million.

Oatmilk in Jamba Locations

Jamba Guests Treated to Free Smoothies

  • This offer was specifically for guests who checked into the select Jamba locations on June 21, 2019 between two and five PM.
  • The English translation for the name Jamba is 'celebrate', and this is what Jamba did for its guests on this National Smoothie Day.

Jamba Juice Becomes Jamba

Launch of Improved Jamba Menu

  • On June 6, 2019, Jamba Juice launched a new menu that was much better than the previous; it showed all the range of their products in a clearer way and was more guest friendly.

Jamba's New Look Stores

Jamba's New Digital Strategy

JamJambba Juice New Leadership

Jamba CIO Awarded

New Year Offer

Jamba New Products

  • In March 2019, Jamba introduced new products which according to the release have enhanced capacity for revitalizing body strength and immunity.
  • Each of the products contain pomegranates which medical reports indicate have several health benefits to the human body.

Research Strategy

The completion of acquisition of Jamba, Inc. by Focus Brands, Inc happened in August-September, 2018 and this was reported in much detail mostly in the month of September 2018. Your researchers efforts to get detailed articles on the merger that were less than 12 months did not yield viable results. Major news networks such as CISION PR Newswire and Beverage daily as well as the Jamba website provided details of the merger in September 2018. That is the reason source one is more than 12 months old.
Part
04
of eight
Part
04

Jamba - Competitors

Tropical Smoothie Cafe, Planet Smoothie, The Smoothie Factory, Smoothie King, Maui Wowi, Robeks Fresh Juices & Smoothies, and Juice It Up are true competitor to Jamba based products, business model, and market niche.

True Competitor to Jamba

1. Tropical Smoothie Cafe

  • Tropical Smoothie Cafe serves great-tasting, nutritious fast food and smoothie across over 800 locations. The company was founded in 1997 with headquarters in Destin, Florida.
  • Tropical Smoothies like Jamba serves fresh fast food, and fresh fruit smoothies through their franchises in over 44 states across the United States and international markets.
  • Tropical Smoothie Cafe is perfectly and strategically positioned itself to serves today’s active, health-conscious, and flavor-craving customers.
  • The company's value proposition includes making its customers eat better and feel better at a low cost without compromising quality.

2. Planet Smoothie

3. The Smoothie Factory

4. Smoothie King (SKFI)

  • Smoothie King is a Dallas-based privately held company founded in 1973, operates in the smoothie, healthy fast food, and franchising industry. The company as the first franchised smoothie bar/health food company in the United States started way back in 1989.
  • The company operates through over 1,000 stores located in the United States and international markets. The brand emerged as the first smoothie franchise on the Entrepreneur’s 43rd annual Franchise 500 list in 2019.
  • Smoothie King’s value proposition is nurturing passion and nourishing purpose. The company aims to help its customers be their best, live their life and rule their day by serving them carefully and masterfully crafted blend of fresh fruit smoothies.

5. Maui Wowi

6. Robeks Fresh Juices & Smoothies

7. Juice It Up

Research Strategy

The list of true competitors to Jamba was compiled based on products, business model, and market niche of companies on the preexisting lists of Jamba's competitors publicly available on business directories like Franchise Ranking, MBASkool, LinkedIn, and ZoomInfo. Other information (value proposition, products, business model, and market niche) after a thorough review of the companies' databases including their website, e-commerce platform, Bloomberg, and LinkedIn profile.
Part
05
of eight
Part
05

Jamba - Competitors 1

Jamba's main competitive advantage is its excellent customer service and customer loyalty. Tropical Smoothie Cafe sets itself a part from the competition with its food and smoothie menu, providing customers with more options. A competitive landscape of Jamba and Tropical Smoothie Cafe is below.

Jamba

Competitive Advantage

Strengths

Weaknesses

Revenue

Footprint

Tropical Smoothie Cafe

Competitive Advantage

  • Tropical Smoothie Cafe is a well know brand with a well like menu.
  • The company has worked to hire and train excellent employees to provide customer service that will keep customers coming back.
  • Tropical Smoothie Cafe is more than just a smoothie shop, it's food menu makes it more diverse and provides a wider range of options to its customers.

Strengths

  • Tropical Smoothie has a diverse menu, with food and smoothie options that bring in a wider range of customers.
  • The company makes innovative changes to its menu regularly, keeping customers coming back to try new items.

Weaknesses

  • Tropical Smoothie is only located in the United States, therefore it has a limited brand recall in other countries.

Revenue

  • As a private company, Tropical Smoothie does not have to release financial information. The company has an estimated revenue of $50.7 million.

Footprint


Part
06
of eight
Part
06

Jamba - Competitors 2

Some competitive advantage of Planet Smoothie include the ability to produce/make very tasty smoothies compared to its competitors, while Smoothie Factory has the ability to learn and understand the local markets in other countries; therefore, staying competitive. Below are the explicit findings of both companies.

Planet Smoothie

Competitive Advantage

Strengths

Weaknesses

  • The major weakness of Planet Smoothie is that it lacks knowledge and understanding about local markets, consumer's taste, and preferences (the company wants to set up its business in Brazil, and it is facing this problem). The local players can use this weakness in their advantage and prevent the company from growing.

Revenue

Geographical Footprint

SmoothIE Factory

Competitive Advantage

Strengths

Weaknesses

Revenue

Geographical Footprint

Research Strategy

To find information about the companies' competitive advantage, strengths, and weaknesses, we went through their official websites and examined reports by credible external directories such as Yelp, Brain Mass, Franchise Chatter, among others. Next, to find the revenue of both companies, we began by going through their websites; however, we could not find any relevant information. Therefore, we used platforms that provide the companies' overview, including their revenue such as ZoomInfo, Owler, among others. Fortunately, after going through all these sources, we were able to find the relevant information to answer the research criteria.
Part
07
of eight
Part
07

Jamba - Competitors 3

Smoothie King and Maui Wowi both focus on specific aspects of the smoothie industry to stand out from competitors. Smoothie King leverages its branding and attention to being health focused. Maui Wowi utilizes their variety of products and distribution that can appeal to a wider range of customer.

Key Points

Company 1 — Smoothie King

Competitive Advantage

  • Smoothie King's mission statement is "to relentlessly influence and help more and more people achieve a healthier lifestyle."
  • Smoothie King promotes itself as an integrated part of living a healthy lifestyle. This advantage has been enhanced with their latest initiatives and branding that put an emphasis on "Clean Blends".
  • Healthy living is not a fad, and Smoothie King directly addresses those needs with their easy, affordable, convenient, and healthy smoothies.

Strengths

  • They have an exclusive partnership with the 2017 number one prenatal vitamin. Smoothie King provides the same nutrients delivered in convenient and tasty smoothies for pregnant women concerned about their health.
  • As Smoothie King re-brands, they've hired Rebecca Miller as the Chief Marketing Officer. Rebecca has an extensive work history in both the food service industry, including On the Border and Pizza Hut, and marketing.
  • Smoothie King prides itself in being healthy and all natural. With their new "Clean Blends Initiative", they use more fruits and vegetables, no added sugar, and no artificial flavors in many of their smoothies.

Weaknesses

  • Their use of fresh fruit and vegetables puts a heavy strain on inventory and purchasing. Food usually has a shelf life of a few days, which means if a Smothie King has a slow week all of that inventory becomes a loss.
  • Smoothies are a luxury good that requires customers have disposable income to spend.
  • There is little to separate Smoothie King smoothies from competitors, so if both businesses use fresh ingredients the smoothies will be of comparable quality.

Revenue

  • In 2018, Smoothie King declared annual revenue of $415.7 million. Since Smoothie King is a privately held company, their financial records are not publicly available.
  • According to their franchise website, the top 25% of Smoothie King stores in the US averaged $730,278 in the year 2018. This represents 185 different locations.

Locations

  • Smoothie King has several stores in the United States as well as one location in Trinidad and Tobago.
  • Smoothie King operates in the states of: Alabama, Arizona, Arkansas, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Jersey New Mexico, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, Wisconsin and Washington DC.
  • The majority of locations are in the southern states with the most locations being in Texas, Florida, and Georgia.

Company 2 — Maui Wowi

Competitive Advantage

  • Maui Wowi separates themselves from the competition through the multiple delivery systems for their products.
  • Typical smoothie places require the customer to either walk to or drive to a stationary location to get their smoothie. Maui Wowi franchisees have the ability to serve their products from official Maui Wowi stands and food trucks which gives them a larger geographic market at minimal cost.
  • Maui Wowi also provides catering services for events which provides a simple and healthy solution for birthday parties, sports gatherings, or fundraisers.

Strengths

  • Maui Wowi is an established brand that has been in business since 1983 and operates across the United States.
  • They offer a multitude of products to meet the customer's needs. They sell smoothies, coffee, and tea as well as delicious baked goods such as cookies.
  • Maui Wowi has multiple ways to deliver their products to the consumer. They have small mobile stands, trucks, kiosks, and typical brick-and-mortar stores. This variety allows them to do catering and large events with their products easily and effectively.

Weaknesses

  • Maui Wowi is a part of a large food service conglomerate which contains direct and indirect competitors to Maui Wowi. Such competitors include Planet Smoothie, Pink Berry, Kahala Coffee Traders, and NrGize Juice Store.
  • Franchisees do not have guaranteed territory which allows for competition between franchises at specific locations.
  • While Maui Wowi offers a variety of products, there is nothing to greatly distinguish their products from the wide variety of competitors such as Smoothie King, Orange Julius, and Starbucks.

Revenue

  • Maui Wowi is owned by Kahala Brands which is a subsidiary of MTY Food Group. MTY Food Group has publicly available financial statements but do not break it down by each subsidiary.
  • In 2018, MTY Food Group earned $1.62 million from Canada and $1.04 million from the US and international. That is a total consolidated revenue of $2.67 million.
  • In 2015, Kahala Brands acquired Maui Wowi and reported a revenue of $386 thousand from the date of the acquisition. They estimated that Maui Wowi would have earned $1.6 million if acquired at the beginning of 2015.

Locations

  • Maui Wowi has several locations throughout the United States, 2 locations in Saudi Arabia, and 1 location in Abu Dhabi.
  • The states Maui Wowi has locations in include: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin.

Research Strategy

The research team prioritized the main website of the companies for information about locations, strengths, and competitive advantages. For weaknesses, the team utilized articles from a variety of sources as well as questions or concerns brought up in the official franchise FAQ page of the respective company. During the analysis, the team realized that a majority of the smoothie companies shared similar weaknesses, so we decided to estimate potential company specific weakness based on the common questions franchisees had before purchasing a location. The assumption was that if several franchisees asked about a potential problem and there was no straightforward solution provided by the company then that element of the business could be taken as a weakness.

For financial information, the research team had to rely on reported accounts and tangential information about these two privately owned companies. We gathered information reported by the companies on their main franchising websites as well as financial information about the companies from previous years that was publicly available. All dollar amounts were converted to US dollars for this report.
Part
08
of eight
Part
08

Jamba - Competitors 4

This research provides the competitive landscape of two of Jamba's competitors, Robeks Fresh Juices & Smoothies and Juice It Up. Robeks Fresh Juices & Smoothies has a total of 83 branches and an estimated annual revenue of $4.6 million, while Juice It Up has 87 locations and an estimated revenue of $148 million.

Robeks Fresh Juices & Smoothies 

Competitive Advantage

Strengths

  • Robeks Fresh Juices & Smoothies make innovative changes and introduces new recipes to its menu regularly, which helps the company drive customers coming back to try new items.
  • The company online ordering system for desktop and mobile devices allows customers to quickly buy Robeks Fresh Juices & Smoothies' products at their comfort.

Revenue

Weaknesses

  • According to reviewers, the company's products are overpriced. The company has a rating of 3.5/5 on Yelp.
  • Comments by customers on Yelp also indicated that there is inconsistency in the quality of Robeks Fresh Juices & Smoothies' products.

Footprint

Juice It Up 

Competitive Advantage

Strengths

Weaknesses

Revenue

Footprint

Research Strategy:

We investigated the websites and social accounts of Jamba's competitors, Robeks Fresh Juices & Smoothies and Juice It Up, respectively. This investigation produced insights into each company's competitive advantage, locations, and strengths. Furthermore, we examined reports by credible external directories such as Entrepreneur, QR Magazine, Franchise Chatter, and others in search of information on each brand's strengths and weaknesses, as available in the public domain. However, our research revealed that these companies are privately-owned, meaning they are not obligated to disclose their sales data. Therefore, we leveraged company intelligence platforms, including CrunchBase, Zoom Info, and others, to provide each company's estimated revenue.
Sources
Sources

From Part 04
Quotes
  • "YOUR PURPOSE-DRIVEN LIFE STARTS HERE Own your purpose, find your Smoothie, and Rule The Day"
From Part 07