Jamba Juice's Turnaround Strategies


Code :RTS0174

Year :

Industry : Food and Beverages

Region : US

Teaching Note:Not Available

Structured Assignment :Not Available

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Background Note Jamba was founded by Kirk Perron (Perron) in April 1990 in San Luis Obispo, California. Perron opened his first store, Juice Club, with the vision of inspiring and simplifying healthy living. He was later joined in this venture by three friends Joe Vergara, Kevin Peters, and Linda Ozawa Olds. The company was renamed Jamba Juice Company in 1995. By 1996, Jamba had thirty stores, both franchised and company owned. In August of 1997, Jamba entered into an agreement with Whole Foods Market to sell natural products inside some of the Market’s stores. In March 1999, Jamba Juice acquired its major rival Zuka Juice, Inc...

Turnaround Strategies James White joined Jamba in 2008, aiming to transform it from a money-losing smoothie company to a profitable healthy-lifestyle brand. White considered that Jamba did not have sufficient time to handle a turnaround. He hired a group of change agents. He selected Bright Side Inc, a Cleveland-based behavioral strategy consultancy, a team with a reputation for helping leaders and organizations to become masters of change...

Building a Successful Platform White divided his turnaround plan into three stages. In 2009, he announced Blend 1.0. As part of that, a $35 million capital infusion was done to eliminate short-term debt; the refranchise of 174 stores was completed and the business model was changed; menu expansion, smoothie innovation, and food platforms were launched. There were plans to open 320 international stores over 10 years; CPG – 10 product lines were commercialized; and executive talent with deep beverage and restaurant competency was added....

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Sign of Recovery Jamba made substantial progress on its Blend Plan to reduce costs, expand its in-store food offerings, and license the brand for packaged food items. It shifted its mix of company-owned versus franchised stores. Sales were in-line with expectations and costs were better than expected ....

Blend 3.0: Acceleratetive Growth In early 2013, Jamba announced the third stage of its turnaround plan – Blend 3.0. Through this, it aimed to accelerate the transformative growth of the company. The plan emphasized on:
• Brand Building and Total Innovation
• Lifestyle Engagement
• Expanding Growth initiatives
• New Products, Partners, Channels, and Markets
• Driving Enterprise Efficiencies
Based on its Blend 3.0, Jamba outlined its vision as, "Build a Globally Recognized, Billion Dollar Healthy Active Lifestyle Brand by 2015." ....

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