Consumer driven the battle for share of stomach has intensified in 2013, due in large part too intense demand for Ready-2-Eat and Heat-N-Eat fresh prepared food that is “better for you”. With the economy still just grinding along Jamba Juice confronted with Same-Store Sales down 3.4 percent in Q3 did not let that slow down the drive to expand the brand. Here is what is working for them.
Currently there are close to 850 Jamba Juice stores in operation. However this year Jamba Juice just completed a deal with Target to put JambaGo machines in 1,000 Target Cafés. That will more than double the number Jamba Juice had installed since the JambaGo program began. At years end Jamba Juice expect to have installed more than 1,800 machines that is up from only 404 at the start of 2013.
Regular readers of this blog know that Foodservice Solutions® Grocerant Guru™ extols the value of these new non-traditional points of distribution for all companies. Building while expanding brand presents creates an added value for consumers while edifying the brand.
With heightened competition from Burger King, Dairy Queen, Panera, and McDonalds JambaGo positions Jamba Juice for growth creating differentiation in the marketplace all the while garnering Top-of-Mind access to consumer with these new additional points of distribution.
How does it work? JambaGo, is a “self-serve machine that can be installed in cafeterias, schools, and convenience stores. Jamba Juice makes money by selling the prepackaged, pre-blended smoothie ingredients to JambaGo vendors, like a soda maker selling syrup to the owner of a soda fountain. The advantages: Jamba doesn’t need to build a store and the labor costs are much lower compared with hiring staff to concoct made-to-order drinks.”
Success does leave clues and Foodservice Solutions® Steven Johnson thinks that “ based on a goal of $2,000 in annual revenue per JambaGo machine, the math for 1,800 machines is $3.6 million.” That said Jamba Juice is planning to place another 1,000 are JambaGo’s in 2014, that my friends would bring in another $2 million in annual revenue. Where are you selling food?