Jamba, Inc. has reiterated fiscal year 2011 guidance and announced that it expects Company comparable store sales will be at the high-end of the Company’s previously announced guidance range of positive 2% to 4%(1). The Company also released its “BLEND” Plan 2.0 outlining Jamba’s strategic priorities for 2012, which will drive critical short and longer term initiatives that will position the Company for accelerated growth and long term shareholder value.
“We are pleased with the Company’s accomplishments against our BLEND Plan 1.0. The commitments that we outlined in early 2009 have all been met. We implemented a disciplined expense reduction plan, eliminating more than $25 million in store level costs, created and expanded our beverage and food portfolio across all day parts, built a licensing growth platform with 10 license agreements and 30,000 points of distribution, and completed our refranchise initiative while accelerating the development of franchise and non-traditional stores,” stated James D. White, chairman, president and CEO of the Company. “Our solid foundation will provide the platform to enable us to accelerate the growth of the brand to its true global potential. We are continuing on our mission to become the leading healthy, active lifestyle brand offering consumers great tasting and differentiated products inside and outside our stores.”
“Our BLEND Plan 2.0 strategic priorities include, relentlessly pursuing new ways to make Jamba a top-of-mind healthy food and beverage brand through delivery of innovative products and breakthrough advertising, embodying a healthy, active lifestyle throughout the entire enterprise, acceleration of global retail growth through new and existing formats, building a global CPG platform in Jamba-relevant categories and reduction of costs and increases in productivity,” continued Mr. White.
Make Jamba Top-of-Mind
Jamba has developed and will continue to optimize engaging and relevant marketing programs and product innovation to further differentiate the brand and drive consumer loyalty and traffic. The Company plans to sharpen and simplify its marketing message to better clarify value and relevancy of the Jamba brand. Jamba also intends to continue its focus on the development of innovative, on-trend specialty beverages, smoothies and associated food extensions that address health and wellness consumer needs across all dayparts.
Embody a Healthy Active Lifestyle
Jamba intends to re-energize the Company’s culture to embody a healthy, active lifestyle through rewards, recognition and benefits. The Company plans to continue to focus on implementing integrated employee and operations programs, broadening the engagement and deepening the knowledge of Jamba’s workforce across the system. The Company also plans to drive greater community focus and activation. The Company also intends to refine and contemporize the store look and feel, with the goal of making the store experience more engaging and inviting to customers.
Accelerate Global Retail Growth
The Company made significant accomplishments in the transition to a more franchise-oriented organization, particularly in non-traditional franchise development. At the close of the fiscal year, the Company had 750 stores system-wide, consisting of 443 franchise-owned and 307 company-owned and operated stores. The non-traditional venues include airports, transportation hubs, grocery stores, big box outlets, school cafeterias and college campuses. On an international basis, the Company has 19 franchise locations and commitments from three existing franchise partners for the development of over 300 additional locations over the next 10 years.
Jamba plans to drive best-in-class economics across all formats by 2013. To facilitate expansion of franchise growth, the Company intends to build a more integrated business model, which will allow qualified franchisees the opportunity to become master developers. JambaGo will be a focus in 2012, providing a potential significant and profitable franchise platform. The Company also plans to accelerate growth in key international markets.
Build a Global Consumer Products Growth Platform
At the close of 2011, the Company had 10 license agreements in place, with 30,000 points of retail distribution. The Company plans to secure the long-term success of existing CPG platforms as well as launch the brand into relevant new categories in the U.S., while also pursuing broader opportunities for global licensing.
Management continues to seek opportunities to extend the Jamba brand and maximize revenue by leveraging the brand in new and complementary consumer packaged product categories and further commercializing existing products at retail outlets.
Reduce Costs and Drive Productivity
Jamba’s BLEND Plan 2.0 contemplates further leveraging technology to drive productivity enhancements at the store level and across the enterprise. The Company plans to build their supply chain into a global competitive advantage leveraging new and existing relationships to drive greater efficiencies and effectiveness in supply, sourcing and distribution. Improving store economics, including labor, COGS/distribution, and store operations, through disciplined cost, control and outlier management, will continue to be a focus for the Company. Jamba also plans to keep general and administrative dollars consistent and optimized as well as focus more diligent efforts to rationalize and simplify end-to-end processes with the goal of increasing productivity and efficiency of allocated resources.
Outlook for 2012
The Company continues to expect to achieve the following results for fiscal 2012:
- Deliver positive Company-owned comparable store sales(1) of 3-4%;
- Achieve adjusted operating profit margin(2) of 19-22%;
- Develop 40-50 new stores in U.S. locations, plus 10-15 new stores at international locations, all excluding JambaGo units;
- Maintain general and administrative expenses flat, in dollars, with fiscal 2011, excluding performance compensation;
- Deliver CPG licensing revenue of approximately $3 million.
Jamba, Inc. is a holding company which owns and franchises, on a global basis, Jamba Juice stores through its wholly-owned subsidiary, Jamba Juice Company. Jamba Juice Company is a leading restaurant retailer of better-for-you beverage and food offerings, which include great tasting fruit smoothies, fresh juices and teas, hot oatmeal made with organic steel cut oats, fruit and veggie smoothies, Whirl’ns Frozen Yogurt, breakfast wraps, salads, sandwiches, California Flatbreads, and a variety of baked goods and snacks. As of January 3, 2012, there were 750 locations in the United States consisting of 307 Company-owned and operated stores and 443 franchise-operated stores. In addition, at January 3, 2012 there were 19 international stores.
