New ingredients and a broader fresh juice offering are on tap for Jamba, Inc. in 2013 as the Emeryville-based company looks to build off its first year of profitability as a public company.
In the year ended Jan. 1, net income totaled $302,000, which compared with a loss of $8,298,000 in fiscal 2011. Revenues rose to $228,789,000 from $226,434,000, with revenue from Jamba branded consumer products nearly doubling in the year, to $2.1 million from $1.1 million.
James White, president and chief executive officer, attributed Jamba’s resurgence in part to the company’s willingness to be “very active with new concepts.”
Among those concepts is JambaGO, a self-service pre-blended smoothies operation that Mr. White said has enjoyed “exceptional growth,” moving from pilot testing late in 2011 to more than 400 locations in 2012. The company expects to add 1,000 more locations in 2013, Mr. White said.
“This business, which offers pre-blended smoothies and other Jamba-branded items, enables us to expand our brand presence, particularly in high volume captive venues such as schools, stadiums and event centers,” Mr. White said.
Jamba also intends to refresh and redesign 75 to 100 existing units each year over the next four years. Three locations already have been refreshed, and in addition to a more contemporary look they include a broader fresh juice offering and new ingredients, including fresh kale, fresh beets and ginger. The new ingredients are expected to be in about 70 to 100 Jamba locations by the middle of 2013, Mr. White said.
Mr. White said consumers will be able to take away a “discernibly different healthy halo” after visiting the refreshed stores, and the effort should have “a significant impact on our health and wellness credentials.”
“We expect to really focus a lot of time and attention around fresh juice,” he said. “You’ll see significant innovation continue to come from us on the smoothie front, and you’ll see a smartly paired food item that works well with the specialty beverage.”
International expansion will be a focus area for Jamba as well in 2013. The company’s partners in Canada, South Korea and the Philippines plan to open 280 stores over the next 8 years, and Jamba on March 5 announced an agreement to enter Mexico with 80 stores set to open over the next 10 years.
“Our efforts to accelerate our global retail growth will have many dimensions,” Mr. White said. “Certainly, international growth will continue as evidenced by the announcement to expand into Mexico. We are actively assessing other markets and believe there is potential for 1,000 units internationally.”
