Jamba Juice -- Blended for Success

Kaitlyn is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

Jamba (NASDAQ: JMBA) just announced a partnership with "Team Up for a Healthy America." This is part of a bigger brand campaign to promote a wellness and an "active and healthy lifestyle" -- the company's tagline -- within its smoothie brand. Since 2008, Jamba has been in a vital turnaround phase, with brand revitalization as well as plans to become a globally-recognized healthy-lifestyle choice.

Growth drivers

Jamba's growth plans include an expansion of its product lines to include new offerings, such as yogurt cups, granola bars, and fruit snacks. The strategy also includes plans to expand store locations in 30 states, as well as to distribute branded products to all 50 states, all of which is scheduled to unfold this year.

Jamba already added items to its menu for all day parts and experienced same-store-sales growth across all aspects of the new menu launch.

The company, which is famous for its juice products, also launched a new kids menu as part of a brand-building campaign to attract a new consumer base. Its "JambaGo" initiative targets grades K-12 with a model designed to increase brand awareness and promote a healthy lifestyle within school systems.

Jamba is also expanding growth initiatives with new store formats and is attempting to capitalize on healthy lifestyle behaviors shared among consumers.

Return to profitability

Last year was a benchmark year for Jamba. Returning to profitability was an echoing theme for the specialty-smoothie company, whose performance just a few years ago was on the decline. One of the new business strategies that Jamba has been able to deploy is a franchise model that allows for more rapid, expanded growth.

Learning from more established players in the fast-food space, Jamba has executed this model with great success. Jamba is also creatively marketing new methods of efficient processes and procedures to reduce costs and drive productivity. Some of these methods include using emerging technologies for payment methods, efficiently improving supply chains, enhancing productivity and staffing methods as well as increasing sales on a global scale.

In fiscal 2012, Jamba increased sales by 5.1% and showed comparable same- store-sales growth for the second year in a row. Jamba’s plan, dubbed "Blend 3.0," also includes tactics to expand its growth globally in the retail space by expanding to Mexico with 80 new stores. Jamba also plans to bring new products into the market by expanding smoothie flavors and introducing products targeted specifically to consumers concerned about long term weight management. 

A healthy lifestyle brand

Panera Bread (NASDAQ: PNRA) has led the charge as a promoter of healthy lifestyles in the fast-food space. Its menu is full of health-food items, with prices rivaling the expense of at-home preparation.  Panera also recently launched a new marketing campaign centered on programs in the community promoting philanthropy. It’s new campaign, Food Chain Reaction, is an effort to combat hunger and help fix a broken food system on a local level. 

In its most recent quarter, Panera's company-owned comparable net bakery-cafe sales were up 5.1%, while revenue increased 15% to $572 million. Panera strongly believes that the philosophy of continued investment in the quality of the food, marketing, and operations is driving its success. 

Starbucks (NASDAQ: SBUX) has long been a steadfast believer in promoting social responsibility through its brand. The 2012 Starbucks Responsibility Report outlines yearly progress on their three pillar system; ethical sourcing, environmental stewardship and community involvement.  With revenue increasing 11% to a record $3.8 billion last quarter, Starbucks not only has global scale, but is building brand value, as well. 

Not to be outdone, Jamba is striving to make its brand philanthropic as well. As a self-proclaimed "brand committed to inspire and simplify healthy living," Jamba is partnering with community organizations to help fight obesity in local communities. With its "Jamba Healthy Living Council," Jamba plans to promote healthy living through the partnerships with star athletes and athletic organizations that support its cause. 

Jamba has revitalized its brand, and continues to innovate as one of the few specialty-smoothie stores on the market. With the addition of new and improved retail channels, improving supply chains, and the efforts to become a globally- recognizable brand, Jamba is quickly becoming a leader in a high-growth, trendy sector.


Kaitlyn Tokay has no position in any stocks mentioned. The Motley Fool recommends Panera Bread and Starbucks. The Motley Fool owns shares of Panera Bread and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

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