TABLE OF CONTENTS
1. Title Page…………………………………………………………………….page 1
2. Table of Contents……………………………………………………………page 2
3. History and Background……………...…………………………………..pages 3-5
4. Products and Services………………...…………………………………..pages 6-7
5. Financial Summary………………….……………………………………pages 8-9
History and Background
Kirk Perron, the founder of Jamba Juice, had a desire of self-business since he was very young. At the age of 16 he started to work at Vons, bagging groceries, and ultimately he became assistant manager at Safeway. This process helped him to gain 10 years of valuable retail experience. At the age of 25, he stop his day job and worked late night stocking groceries and started working out and bicycling during the day. Usually after exercising, he would buy a smoothie, which was healthier than frozen drinks. This eventually put the ideas in his mind to open his own smoothie store.
Kirk Perron started to gather his people to help him launch the business. He met his director of research and developer, Joe Vergara, at Safeway store who already was involved in the juice bar business, Kevin Peters who became director of partnership development, and Linda Ozawa the head of marketing. One of the obstacles that Kirk Perron faced at the start of the business was the fact that he could not convince the bank to get loan. Therefore, he had to sell his apartment and borrow money from his mother and his friend, all together he got $115,000. This is how they could get their first location on San Luis Obispo and in April 1990, they opened their first smoothie store, and named it Juice Club. By the end of second year, Juice Club was turning profit and Kirk Peron was ready to expand the business. Since he was unsuccessful with getting a loan, he decided to expand through franchising. Kirk Perron’s second Juice Club opened in Irvine, California. Moreover, by the end of 1994 he had 16 franchises. In September 1994, Kirk Peron meet Bob Kagle, partner of Technology Venture Investors and Benchmark Capital. Kagle believed Juice Club’s smoothies had a chance to grow like Starbucks coffee. Kagle enlisted the CEO of Starbucks, Howard Schultz, in participating in investing $3million and joining the board. With all this change, Juice Club was able to raise $19million from seven more venture groups, like Microsoft cofounder Paul Allen. Therefore, wider groups of investors joined in investing an additional $44million in the Juice Club Business.
In 1995, Jamba changed his corporate location to San Francisco, increase his staff, and changed the name of Juice Club to Jamba Juice. Jamba means to celebrate in Swahili. By mid-1996 the chain had 30 stores in California, 18 of which were owned by the company. In August 1997, Jamba signed a license deal with Whole Food Market of Austin Texas. Whole Food Supermarkets in Boulder, Colorado, and Tempe, Arizona, were the first Jamba Juice outside of California. However, the ultimate goal was to place a juice bar in all 75 Whole Food supermarkets across 17 states.
In early 1999, Jamba negotiated a merger with, Zuka Juice, one of their major competitors. Zuka helped Jamba to enter the Northwest as in Texas and Nevada.
Jamba started to open more outlets with major franchise partners. For example, Jamba’s Hawaii partner opened outlet in Hawaii, and joint Hartland Juice Company created to bring more Jamba Juice in Illinois, Minnesota, and Wisconsin. In January 2000, Jamba brought fast food executive Paul Clayton, to take over as a chief executive officer.
Jamba under Clayton started to offer catering services, with the name of Jamba Go Go, by teaming up with Waiter.com, an Internet ordering and delivery service. By the summer of 2001 Jamba chain had grown to 330 stores. In early 2002 when Jamba signed a licensing agreement with Sodexho, a major food and facilities management company, gave their plan on expansion a bigger
