Jamba Juice 2013 Annual Report Download - page 11

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TABLE OF CONTENTS
In May 2011, we signed a master development agreement with Canadian Juice Corp., the principals of which are world leaders in the
frozen yogurt category, with over 1,200 stores in 25 countries, to develop 80 Jamba Juice locations in Canada over 10 years. The first
Jamba Juice store opened in Toronto in October 2011. During 2013 six new Jamba Juice stores were opened and two were closed. As of
December 31, 2013, there were 12 Jamba Juice stores operating in Canada, eight of which are Smoothie Station locations. In addition, we are
continuing to explore with our Canadian partner, opportunities to leverage our JambaGO and Smoothie Station formats to further grow the
brand. We believe these new formats will enable a more rapid expansion, and strengthen brand awareness and loyalty in the Canadian
market.
In March 2013, we signed a master development agreement with Casa Operadora de Franquicias MAV, the principals of which are
seasoned executives operating in the food and beverage, and health and wellness retail businesses across Mexico and Latin America, to
develop 80 Jamba Juice stores in Mexico over 10 years. The first Jamba Juice stores are expected to open in Mexico City during the first
quarter of 2014.
In December 2013, we signed a master franchise development agreement with Foodmark, the Food and Beverage division of Landmark
Group, the leading retail and hospitality group in the Middle East, North Africa (“MENA”) and India with over 22 million square feet of
retail space across 1,600 locations in 19 countries, to develop 80 Jamba Juice stores in the Gulf Corporation Council region over the next 10
years. The first Jamba Juice store is expected to open in Dubai in 2014.
Our brand and products have international appeal and we continue to engage in discussions with additional potential partners regarding
the expansion of Jamba Juice stores into new international markets. The success of further international expansion will depend on, among
other things, local acceptance of the Jamba Juice concept and menu offerings, and our ability to attract qualified franchise partners. Our
market planning has shown that there is potential for at least 1,500 total international Jamba Juice stores, which would meet our current
store opening criteria. Our agreements take the form of development and franchise agreements under which we typically receive an initial
territory fee, store opening fees, and ongoing royalty revenues based on a percentage of sales.
Jamba Juice store locations at the end of fiscal 2013 were comprised of approximately 31% Company Store locations and 69%
Franchise and International Store locations, globally.
New products, partners, channels and markets
During 2013, we consolidated our JambaGO, Jamba Smoothie Stations, Jamba-branded CPG products and Talbott Teas® all together
under one organization unit called Jamba New Ventures. This structure will facilitate synergies, allow for improved resource allocation and
investment choices, and thereby increase shareholder return.
The JambaGO concept, which we developed in 2012, targets venues servicing captive audiences. The JambaGO format is a small
footprint, low-capital and low-labor self-serve machine format and has proven to be an innovative and differentiated solution for foodservice
providers seeking healthier beverage options for their constituents. The typical venue for a JambaGO unit has a significant demand for high
volumes, requires high-speed service, where a full-sized Jamba Juice store or kiosk would not be feasible. Such venues include retail store
cafés or restaurants, K-12 schools, colleges and universities, grocery and convenience stores, stadiums, theaters, event centers and select
airport locations. The JambaGO format has been enabling Jamba to rapidly expand brand presence. During 2013, we launched JambaGO
units at over 1,000 Café locations in Target Stores in the United States. The number of JambaGO units in operation at December 31, 2013
was 1,851.
The Jamba and Talbott Teas brands are available across multiple product categories and in major retailers across the country. As of
December 31, 2013, we had approximately 23 individual Jamba SKUs at retail distribution points across all 50 states. We plan to continue
investing additional resources to grow the Jamba CPG product portfolio through a combination of licensing and direct selling. This growth
will expand the accessibility of our brand and offer consumers new and unique opportunities to experience the Jamba brand.
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