Jamba Juice

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Jamba
Type Public (NASDAQ: JMBA)
Founded San Luis Obispo, California (1990)
Headquarters Emeryville, California
No. of locations 672
Key people Paul Clayton, Chairman & CEO
Revenue $253 Million USD (FY June 2006)
Employees 9,000
Website http://www.jambajuice.com

Jamba Juice is a high-end chain of smoothie restaurants headquartered in Emeryville, California with over 640 locations operating in 21 states, the District of Columbia and the Bahamas. Over 400 locations are company-owned, with the remainder being franchised.[1] For the 12 months ending January 10, 2006, system wide sales were $345 million, which included sales of $230 million from company locations. The company has achieved a compound annual growth rate of 20% per year over the last three fiscal years.

Contents

A typical Jamba Juice store.
A typical Jamba Juice store.

Jamba Juice was founded in April 1990 by Cal Poly graduate Kirk Perron, and incorporated in 1991 as Juice Club, Inc. in San Luis Obispo, California.[2][3] It is known as one of the leaders in the quick-serve fruit and vegetable juice market nationwide.[4]

In 1993, the company opened two other California stores, one in Palo Alto[5] and one in Irvine[6].

Juice Club Inc. of San Francisco changed its store name to Jamba Juice in 1995.[7] Said founder Perron[8]:

“ I'm surprised there aren't more companies creating a culture beyond selling, [offering] a soulful experience for the customer. That's been the basis for our success. ”

In August 1997,[9] Jamba entered into an operating agreement with Whole Foods Market to sell only "natural" products inside some of the Whole Foods's locations, including Jamba's smoothies' ingredients. For this reason, offerings at Whole Foods sites may differ from those at stand-alone sites.[10]

Jamba Juice acquired all nation-wide Zuka Juice, Inc. stores in March 1999.[11] Zuka Juice was founded in Orem, Utah, and also was a prominent smoothie company at the time. Since then Jamba Juice has expanded to become one of the nation's best known smoothie chains, emphasizing the benefits of a healthy lifestyle.

Since entering the market in New York City, June 2004,[12] Jamba Juice has opened 19 locations across the city and it continues to open more locations. The first location is located at Columbus Circle and 59th Street, in the basement of the Time Warner Center and as part of the Whole Foods Market seating area. Other locations include one just south of Union Square, and one in the Port Authority Bus Terminal.

On March 13, 2006, Jamba Juice agreed to be acquired by Services Acquisition Corp. International for $265 million. Services Acquisition is headed by Steven Berrard, former CEO of Blockbuster Inc.. Upon closing of the transaction, the publicly traded Services Acquisition changed its name to Jamba, Inc.[13]


The creators of Jamba Juice came up with the name during a brain storming session.[14] Apparently "Jamba" was inspired by the jambu fruit, and a word "jama" that was discovered by Linda Olds in the languages section of Kennedy Library at California Polytechnic State University in San Luis Obispo.

Prior to 2007, the company's website claimed that "Jamba" derives from the "African" word "Jama," which means "to celebrate, taking care of body, mind and soul is a way of celebrating life."[15] The etymology has since been removed from the company's website.[16] Direct e-mails to the company claim it to be of West African origin, but it does not specify from which of the estimated 1800 African Languages it derives. "Jamba" means "fart", "pass gas", or "break wind" in Swahili.[17] Additionally, there is a town named "Jamba" in Angola, which may be related to the word "jamba," meaning "Elephant" in Umbundu, a language spoken in southern Angola. The town became relatively well-known as the headquarters of UNITA during the Ronald Reagan Administration in the USA.

Jamba Juice uses real fruit and 100% fruit juices (from all fruit concentrate). All smoothies, except for its "All Fruit Smoothies," contain another ingredient, as per the recipe: sherbet, frozen yogurt, sorbet, plain yogurt, lower-calorie dairy base or soymilk.

Jamba Juice is frequently criticized for selling smoothies with more sugar than is recommended by the USDA to consume in one day[citation needed]. Because of this, Jamba Juice introduced "Enlightened Smoothies" in 2004 with less sugar and fewer calories and carbohydrates. They have since been renamed "Jamba Light." The Lower-calorie dairy base (formerly called Enlightened Base) is made with Splenda, non-fat milk and whey protein.

In addition to the smoothies, Jamba Juice sells fresh-squeezed orange juice, carrot juice and lemonade, as well as wheatgrass juice shots. Jamba Juice also offers a substitute to coffee, for a caffeine fix, called Matcha Green Tea, which can be taken in a smoothie or as a small 4-ounce shot with soy milk, orange juice, or a mixture of the two, called a "dream shot". All of these are similar to an espresso shot with a more appetizing taste to some. Jamba Juice also offers boosts (dietary supplements). Each smoothie and yogurt blend comes with the option of one free boost addition, from a selection of six such as Soy Protein, Immunity, Energy, Daily Vitamin or Fiber. The Protein Berry Workout, Coldbuster, Fit 'N Fruitful, and Heart Defender each come with a boost, so upon purchasing, the consumer has the option of adding an extra boost in addition to the boost already added. Extra boosts, such as Weight Burner, Matcha, or Heart Happy or another of any of the six free boosts may be added for a small additional fee. Prices vary by region (a medium size smoothie ranges from about $3.85 to $5).

Any smoothie can be modified from its standard recipe. Every customer has the opportunity to remove ingredients and substitute others. This is recommended to customers who have varied dietary needs.

Effective August 2nd, 2007, changes affecting the boosts and smoothies are as follows:[18]

  • The free boosts will be Soy Protein, Immunity (reformulated), Energy (reformulated), Daily Vitamin, Fiber, Green Caffeine, and Calcium. The Calcium Boost has similar effects and products as contained in the Femme, however the Femme is officially being discontinued.
  • The super boosts will be Whey Protein, Heart Happy, Antioxidant, Matcha, and Weight Burner. The Vibrant C boost has been discontinued.
  • The Protein Berry Pizazz will be renamed Protein Berry Workout; customers may choose to have Whey or Soy Protein in their smoothies. The drink will carry Nike co-branding in all California Jamba outlets.[19]
  • The Acai Supercharger will be renamed Acai Super-Antioxidant; it will now include an Antioxidant boost.
  • Two new smoothies will be added to the menu: Heart Defender and Fit N' Fruitful.
  • The Coldbuster will have an Antioxidant boost instead of the Vibrant C boost.
  • The Orange Dream Machine, Chocolate M'ood, and Peanut Butter M'ood will go under the new category "Creamy Indulgences."

  • Jamba is currently testing a line of breakfast foods/smoothies in New York and Los Angeles. If successful, the line will start being offered nationally in March 2008
  • In December 2007, it was announced that Jamba would be partnering with Nestle to lend its name to a line of healthy, ready-to-drink beverages under the Jamba brand.

  • Prison Break (2005), Michael Scofield: "We're not breaking out of a Jamba Juice, gentlemen."[20] Then spoofed in Arrested Development
  • Saturday Night Live, guest starring Natalie Portman
  • Late Show with David Letterman, shortly after the release of Spiderman 3, Late Show did a segment called "How many men in Spiderman suits can fit into a Jamba Juice?" They sent 19 Spidermen, 3 Symbiote Spidermen boosts, 1 Superman, 1 Princess, 1 Dracula, 1 Moses,1 Dog and 2 Monkeys into the downtown New York store.
  • Second season premiere of Psych
  • Late Show with David Letterman August 2, 2007 sent a Jamba Juice smoothie from the 54th Street and Broadway store across the street to the Ed Sullivan theater through PVC tubing to a faucet mounted on Dave's desk.
  • In the First part of the sixth season of The Sopranos, Jamba Juice plays a pivotal role in the episode, Johnny Cakes. Tony Soprano chooses to sell a building to Jamba Juice which highlights the influx of chain stores in Newark's North Ward.
  • Testosterone (2003), Louise: "Is anybody going to Jamba Juice? I would love a Berry Blast with a Protein Boost - fast."[21]
  • Tracy Morgan, while on the Jimmy Kimmel show takes a sip of his drink and is startled, he says "What's in here? My kind of drink! It ain't no Jamba Juice, I know that."[22]

  1. ^ Jamba, Inc. Reports Financial Results For The First Fiscal Quarter Ended May 1, 2007
  2. ^ Gregg H. Hawkins | A Recipe For Success
  3. ^ Jamba Juice: UFOC, freefranchisedocs.com
  4. ^ Carlsen, Clifford. "Juice Club given fresh cash, will pour into new markets", San Francisco Business Times, 1996-06-14. Retrieved on 2007-08-20. 
  5. ^ Smoothie Sensation, tucsonweekly.com, July 2004
  6. ^ Jamba Juice Company, answers.com
  7. ^ cached article from shareholder.com
  8. ^ Juice up your image: Jamba Juice - Company Profile, Entrepreneur, Sept, 1997 by Gayle Sato Stodder
  9. ^ Whole Foods Market Reports Record Third Quarter Results (Third Quarter, 1997). Retrieved on 2007-08-20.
  10. ^ http://www.mercurynews.com/mld/mercurynews/living/people/teens/13982331.htm
  11. ^ [1], freefranchisedocs.com
  12. ^ [2], jambajuice.com
  13. ^ JAMBA JUICE COMPANY AND SERVICES ACQUISITION CORP. - INTERNATIONAL ANNOUNCE MERGER, SEC
  14. ^ According to a California Polytechnic State University, Summer 2007 article: Blended Bliss, Three Alums and a Local Entrepreneur Create a Recipe for Success
  15. ^ 2006 jambajuice.com page from Internet Archive
  16. ^ current jambajuice.com page
  17. ^ Swahili-English Dictionary, the Kamusi Project, not longer accessible
  18. ^ 2007 Jamba Juice press release as reprinted in Jamba Report blog
  19. ^ Jamba Juice Tailors Smoothies to Consumer's Needs, brandweek.com]
  20. ^ [3]
  21. ^ [4]
  22. ^ 1:55 of the video [5]

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