Kirk perron net worth

JAMBA JUICE: MIXING IT UP & STARTING AFRESH *

On January 3, 2017, Dave Pace, CEO of Jamba Juice, rang the Opening Bell of the Nasdaq MarketSite in Times Square. As part of what Nasdaq had done for the last six years during its annual “Fit Week,” Jamba Juice’s appearance was meant to focus attention on those companies that helped individuals lead healthier lifestyles. It was especially appropriate for Jamba Juice, because the lifestyle brand with a passion for making healthy living fun was undergoing a refresh of its own. To be announced in March 2017, preliminary financial results for fiscal 2016 had indicated a decrease in revenue and a loss for the year. Although the company had tried to explain this by pointing to the non-recurring expenses of business model adjustment and corporate relocation, investors were wary as the stock price continued to slide.1 The largest shareholder and activist investor, Engaged Capital, had called on the company to “slash costs and close unprofitable stores”2 which CEO Pace was in the process of doing.

In May 2016 Pace had announced that Jamba would move its headquarters from California to a less expensive location in Texas, restructure the overall organization, and make changes to the leadership team to ensure support for the transition from company-owned stores to a full franchise model. Commenting on this decision, Pace said, “Jamba has pursued our vision to inspire and simplify healthy living for 26 years, starting with a single juice shop in San Luis Obispo, but as we continue to spread our healthy living mission globally, it has become increasingly clear that a relocation of our support center will better position the company to extend our brand and continue to support our franchise partners for the long term.”3

In January 2017 Jamba Juice announced the launch of its ReSet Super Blends, a protein smoothie line developed in collaboration with celebrity fitness trainer Harley Pasternak.4 The new line of protein smoothies included real fruit fortified with calcium, riboflavin, and phosphorus, making for an ideal pre- or post-workout snack or midday “pick-me-up.”

But the question remained, would these ongoing initiatives, mixing up the product line and starting afresh with franchise partners, be enough to keep Jamba Juice top-of-mind with its current customers and attractive to new consumers, especially given the increased competition from smoothies served at the likes of McDonald’s, Burger King, and Dairy Queen?5

Company Background

Juice Club was founded by Kirk Perron and opened its first store in San Luis Obispo, California, in April 1990.6 While many small health-food stores had juice bars offering fresh carrot juice, wheat germ, and protein powder, dedicated juice and smoothie bars were sparse in 1990 and didn’t gain widespread popularity until the mid- to late 1990s.

Juice Club began with a franchise strategy and opened its second and third stores in northern and southern California in 1993. In 1994 management decided that an expansion strategy focusing on company stores would provide a greater degree of quality and operating control. In 1995 the company changed its name to Jamba Juice Company to provide a point of differentiation as competitors began offering similar healthy juices and smoothies in the marketplace.

In March 1999 Jamba Juice Company merged with Zuka Juice Inc., a smoothie retail chain with 98 smoothie retail units in the western United States. On March 13, 2006, Jamba Juice Company agreed to be acquired by Services Acquisition Corp. International (headed by Steven Berrard, former CEO of Blockbuster Inc.) for $265 million.7 The company went public in November 2006 as Nasdaq-traded JMBA. Jamba Juice stores were owned and franchised by Jamba Juice Company, which was a wholly owned subsidiary of Jamba Inc.

In August 2008 Jamba Juice faced significant leadership changes. Steven Berrard agreed to assume the responsibilities of interim CEO.8 In December 2008, James D. White was named CEO and president, while Berrard remained chairman of the board of directors. Prior to joining Jamba Juice, White had been senior vice president of consumer brands at Safeway, a publicly traded Fortune 100 food and drug retailer. During what CEO White called the turnaround years from 2009 to 2011, he worked to eliminate short-term debt, innovate, expand the menu, and change the business model by refranchising stores, growing internationally, and commercializing product lines.

Ongoing Strategic Initiatives

Jamba pursued elusive financial health during James D. White’s tenure as CEO. Although revenue had been down, the company was profitable, and things appeared to be back on track in 2015 as White moved forward with his “BLEND 2.0” strategic priorities. This BLEND strategy was part of a business redirection that included shifting from a company ownership to a franchise ownership model, refreshing the product line, and accelerating global retail growth through new and existing formats. When he retired in 2015, White had been partly successful, growing revenue and returning the company to profitability in fiscal 2012, only to see a loss in 2014. (See Exhibits 1 and 2.)

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When White announced his retirement in October 2015, he felt the accelerated refranchising initiative was virtually complete, and that the company would benefit from a “new generation” of leadership.9 Nearly two years earlier, Jamba Juice CEO White had also rung the opening bell at Nasdaq in New York City. Headlines had announced “Jamba Juice Rings in the New Year with the Unveiling of Brand-New Jamba Kids™ Meals.” This new menu targeting Jamba’s newest and youngest customers involved smaller 9.5-ounce sizes of fruit smoothies—Strawberries Gone Bananas, Blueberry Strawberry Blast-off, Popp’in Peach Mango, and Berry Beet It—plus two new food items: a Pizza Swirl with Turkey and a Cheesy Stuffed Pretzel. The idea for this kid’s menu came from listening to customers, who had struggled to share the larger smoothie drinks with their young children. It also meshed with Jamba’s overall strategy: to create “good-for-you food that tastes good” and to continue to add more full-meal options to the menu for both kids and adults.10 The Jamba Juice Company had been expanding its product line over the years to offer Jamba products that pleased a broader palate. In addition, Jamba had been pursuing an aggressive expansion program, evolving from a made-to-order smoothie company into a healthy, active-lifestyle company.