Jamba Juice 2014 Annual Report Download - page 10

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New products – leadership in smoothies, juice, and bowls
Our long-term growth prospects are driven by our product innovation around our core offerings of smoothies, juices, and bowls. Product innovation is a
high priority, and our menu items are designed to offer our customers products that are relevant to a healthy, active lifestyle. Our research and development
team, composed of food scientists, quality assurance specialists and food industry experts, is continually developing and testing new and improved menu
items that support not only the integrity of the Jamba Juice brand but our commitment to offering healthy, innovative and great tasting products made from
high quality ingredients.
During 2014 we introduced several new product offerings:
·a line of delicious and nutritious bottled juices, blended from fruits and vegetables. Jamba uses high pressure
processing (HPP) for the new cold-pressed juices to protect their nutrients and flavor. Each of the SKUs is analogous to one of the freshly squeezed
Made-To-Order juices, and are packaged to help nutrition-conscious individuals meet their daily intake of fruits and vegetables. At the end of the
year, our cold pressed juices were available at over 300 stores in California and 19 locations in New York City.
· — served in convenient, portable portions, our new Energy Bowls are a nutritious blend of real, whole fruit and soymilk or fresh
Greek yogurt, topped with an assortment of dry toppings and fresh fruits. Whether served for breakfast, lunch or as a mid-day snack, these bowls
provide key nutrients, vitamins, minerals and fiber to support a well-balanced diet.
Our research and development team continually seeks to enhance the product offerings available to customers, and where possible, reduce product and
labor costs. Our research and development process includes both the development of new products and the optimization of existing menu items to ensure
only the most appealing products are developed and offered to customers. All of our menu options meet our four mandatory core standards: 0 grams of trans-
fat, no high fructose corn syrup, no artificial preservatives, and no artificial flavors.
Drive to an asset-light business model and other strategic initiatives to enhance shareholder value
Towards the end of 2014, we announced a number of additional strategic initiatives focused on to enhance shareholder value that we plan to pursue in
2015:
·we are moving aggressively toward an asset-light business model that will incorporate an 80% or more franchise-
location organization in 2015, up from 70% currently. Our plans include the previously announced refranchising of up to 114 stores targeted for
completion in the first half of this year and continued addition of franchise stores outside of the refranchising context. Our transition to an asset-
light business model is designed to facilitate a more flexible cost structure which would enable faster execution and enhanced focus on growth
initiatives and allow us to pursue additional cost savings.
·we are also focused on implementing additional cost reductions and ongoing expense management. In the
second half of 2014 we entered into an agreement with a third party service provider of consulting, technology and outsourcing services
designed to improve workflow efficiencies while reducing costs. At the end of 2014 we also announced the implemention of a workforce
reduction of approximately 11% of our employees at our support center, including three of our Senior Vice Presidents. In 2015 we continue to
plan to look for opportunities to further cost efficiencies and expense management.
·we previously announced our plan to repurchase up to $25 million of our stock as a way to aggressively return of capital to
shareholders to enhance shareholder value. In addition, we plan to continue to examine our capital allocation as we anticipate additional cash
proceeds from our refranchising initiatives to allocate in a manner best designed to return value to our shareholders.
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