Strategy #1 - Vertical Integration: Eliminate Supplier
• Currently one supplier accounts for 75% of materials
• Aims to eliminate need for supplier
• Develop infrastructure to directly buy fruit
Jamba Juice Quick Facts
Jamba Juice Projected Consolidated Income Statement (in thousands)
Projected YE 2011 Projected YE 2012
$229.880
$201,197
$584,456
$532,057
$(354,576)
$(330,860)
69,279
75,307
$(5.12)
$(4.39)
Projected YE 2013
$229,880
$492,517
$(316,425)
81,858
$(3.87)
Strategy #2 - Form a strategic alliance with Caribou Coffee
• Enter new geographic markets
• Expand product line
• Position for potential merger
Jamba Juice Locations
• Fresh fruit and vegatable smoothies
• Coffee and tea
• Light fare (wraps, flatbreads, baked goods)
Founded:1990
Current CEO:
James D. White
Headquarters:
Emeryville, CA
Employees:
5,900
Market Cap:
$104,670,000
2011 Income:
$(16,656,000)
Stock Price:
$1.64
Stock Code:
JMBA
Jamba Juice Locations
Store Types - Company Owned vs. Franchise
• 752 locations as of 11/28/11
• Shift to franchised locations
• Nearly 50 percent of locations are in CA
800
Number of Stores
Revenue
Cost of Sales
Profit
Shares Outstanding
Earnings Per Share
Jamba Juice Products
Jamba Juice Projected Consolidated Income Statement (in thousands)
Revenue
+ Jamba Sector
+ Caribou Sector
Total Revenue
Cost of Sales
Profit
Shares Outstanding
Earnings Per Share
Projected YE 2011 Projected YE 2012
$229,821
$201,094
$25,000
$30,000
$50,000
$60,000
$304,821
$261,094
$227,794
$176,364
$77,027
$84,730
69,279
75,307
$1.11
$1.13
Projected YE 2013
$175,958
$33,000
$66,000
$241,958
$139,273
$102,685
81,858
$1.25
Traditional (standalone)
Location
478
400
351
200
0
Caribou Coffee Locations
511
501
743
739
729
707
600
206
2007
261
218
2008
2009
Year
Non-Traditional
Location
Jamba Juice Consolidated Income Statement (in thousands)
Revenue
Cost of Sales
Profit
Shares Outstanding
Earnings Per Share
Year Ended 2008
$342,890
$498,523
$(155,633)
63,734
$(0.29)
Year Ended 2009
$301,737
$321,744
$(20,107)
52,712
$(0.38)
392
Year Ended 2010
$262,653
$278,676
$(16,023)
54,690
$(0.29)
BUS 440 - Group Two: Devin Brines • Ryan Mathews • Ben Schippers • Stephen Schlaack • Adam Whitfield
2010
Jamba Juice Consolidated Consolidated Balance Sheet (in thousands)
Year Ended 2010
$26,035
$49,215
$100,054
$56,530
$72,112
$7,388
$100,054
Gross Margin Compared
Current Ratio Compared
2.00
80%
2.00
77%
1.60
Gross Margin (%)
Year Ended 2009
$48,423
$70,266
$125,818
$64,355
$80,213
$14,536
$125,818
Current Ratio
Year Ended 2008
Current Assets
$41,093
Property, Plant, and Equipment
$95,154
Total Assets
$145,720
Current Liabilities
$62,860
Total Liabilities
$105,299
Total Stockholders’ Equity
$40,421
Total Liabilities and Stockholders’ Equity $145,720
Jamba Juice Comparative Financial Statements
1.45
1.20
0.80
0.81
0.99
0.88
0.80
0.75
0.65
0.59
0.40
76%
60%
40%
20%
2008
2009
0%
2010
2008
Jamba Juice Core Competencies
2009
Return on Assets (%)
Inventory Turnover
• Strong brand identity
• Healthy, active, lifestyle brand
• Fresh & healthy product lines
16%
80.82
66.0
44.0
22.0
Jamba Juice SCA
20%
105.65
99.82
0
20.56
18.36
6.71
6.37
7.38
2008
2009
2010
11.85
High
Bargaining
Power of
Customers
Threat of
New
Entrants
High
Industry
JMBA
Bargaining
Power of
Suppliers
-6%
-29%
-53%
-78%
2008
2009
2010
30%
$1.30
-$2.72 -$0.50 -$1.59
-$0.45
$0.20
-$0.84
-369%
$0.26
-$0.26
-$1.00
-$1.50
-$2.00
13%
-32%
-13%
14%
11%
28%
-19%
-50%
-130%
-209%
-289%
-$2.50
-$3.00
2008
2009
2010
-369%
2008
2009
2010
Year Ended
Year Ended
Jamba Juice
Threat of
Substitute
Products
Starbucks
Caribou Coffee
Jamba Juice Projected Consolidated Income Statement (in thousands)
Jamba Juice Root Problem
Narrow product line which
limits Jamba Juice’s
ability to compete and grow.
Revenue
Cost of Sales
Profit
Shares Outstanding
Earnings Per Share
10%
-16%
Return on Equity Compared
Medium
Competitive
Rivalry within
Industry
-19%
Earnings Per Share Compared
Return on Equity (%)
High
Earnings Per Share
5 Year Industry Stock Trend
$0
-16%
7%
Year Ended
$0.50
-$0.50
-102%
6%
Year Ended
$1.00
Jamba Juice Porter Analysis
-4%
-102%
$1.50
Industry Stock Trend
2010
Return on Assets Compared
110.0
88.0
18%
Year Ended
Inventory Turnover Ratio Compared
• Disciplined expense reduction plan
• BLEND PLan
• Customer service culture
18%
17%
0
58%
56%
55%
Year Ended
Jamba Juice Competitors
74%
Projected YE 2011 Projected YE 2012
$176,092
$201,197
$120,300
$159,176
$55,792
$42,021
81,858
75,307
$0.68
$0.56
Projected YE 2013
$229,880
$210,614
$19,266
62,279
$0.28
17%