Jamba Inc., Jamba Juice, Nestle USA, Jamba energy drinks, James D. White, energy drink, vending beverages, consumer packaged goods, CPG news
EMERYVILLE, CA -- Jamba Juice is ending its licensing deal with Nestlé USA to assume control of its branded energy drinks, and setting a precedent for the future direction of its consumer packaged goods platform.
The smoothie chain said it has acquired the product formulation and intellectual property for Jamba all-natural energy drinks that it developed under a licensing partnership with Nestlé. Terms of the deal, expected to close by June 20, were not disclosed.
The single-serve beverages, offered in three flavors and packed in 8.4-fl.oz. cans, launched in the Northeast last year. The company said it plans to expand distribution beyond the current Northeastern market as part of its goal to accelerate its consumer products platform.
"We've previously used only licensing agreements for our consumer packaged goods products," said James D. White, chairman, president and chief executive of Jamba Inc. "As we enter into the new phase of our approach to CPG, we'll explore joint venture, co-pack agreements and other sales and distribution arrangements to provide us with increased control of our CPG products and enhanced returns."