$$ Nestle’ & Jamba

Should be an interesting conference tomorrow…… yes, were are VERY happy here…

Emphasis mine:

Nestlé USA and Jamba Juice Close to Renewing Partnership for Launch of Ready-to-Drink Beverage Line
Nestlé Jamba All-Natural Energy Drink Expected to Launch in Retail in Early 2011

Nestlé USA, part of Nestlé, S.A., the world’s largest food and beverage company, and Jamba Juice Company (NASDAQ: JMBA), a highly recognized, healthy active lifestyle brand, revealed today they are close to signing a renewed partnership for the development of a new line of ready-to-drink energy beverages to be available for retail sale in the northeastern United States in early 2011. Nestlé Jamba All-Natural Energy Drinks will feature real fruit juice boosted with natural caffeine, for a great-tasting, energy drink alternative.

“We are thrilled at the possibility of a renewed partnership with Jamba Juice,” said Rob Case, president of the Nestlé Beverage Division. “Nestlé Jamba All-Natural Energy Drinks will allow retailers to capitalize on the growing trend of consumers seeking more health-oriented, fruit-based natural beverages that provide quick energy without all the artificial ingredients.”

Jamba Juice and Nestlé USA plan to leverage their respective product development talents to create a line of energy drinks that provide a meaningful point of difference to consumers within the $8.5 billion energy drink category. The Jamba All-Natural Energy Drinks will be available in three unique flavors: pomegranate blueberry, strawberry banana, and crisp apple. As with all Jamba Juice products, they’ll contain no preservatives, no artificial flavors, zero grams of trans fat, and no high fructose corn syrup. Additionally, each 8.4 ounce can contains 70% real fruit juice, 80mg of natural caffeine, is fat free and 90 calories per serving.

“The Jamba brand name stands for better-for-you, great taste, and high quality–attributes we share in common with Nestlé USA,” said James D. White chairman, president, and CEO, Jamba Juice Company. “The development of these products is a reflection of the extraordinary partnership and commitment to excellence that exists between our two companies.”

Since announcing their intent to build a licensing growth platform, Jamba Juice has made significant progress in developing licensing alliances to manufacture, market, and distribute Jamba-branded offerings through grocery, convenience, and other retail channels. Both Nestlé USA and Jamba Juice Company continue to explore a number of other joint opportunities to extend the Jamba brand.

We have been expecting this for some time and think there is more, significant, announcements coming with Nestle’. Do not be surprised to see Nestle’ also begin to distribute JMBA all organic coffee in the near future. The focus of this initially the NE is also key with its huge population that is currently under served by JMBA due to limited store operations. The main reason for that was the lack of hot offerings. Oatmeal, tea, and coffee have now solved that. Now we need to expand the brand name and Nestle’ is just the partner to do that. The potential growth for JMBA in the NE is huge. This is step one.

We have store operations improving quarter by quarter and now we have all these alternate revenue streams popping up outside of the day to day store operations. From the make at home smoothie kits currently out there to this, these licensing deals essentially have revenues that drop straight to the bottom line.

Will the effect be felt this calendar year? Marginally as the make at home kits are out there. The bulk of these initiative will contribute a far larger portion next year.

So, why not wait until then to buy the stock? I got asked this last year when we bought at $1 and at that time were focusing purely on the operations turning around and the switch to franchising vs corporate stores. People thought we should wait until they proved they could do it first, then buy. Sure, you can wait until then but then you may be buying a $4 stock rather than a $2.35 stock. Just like those who waited last year and are buying in now are buying in after watching 100% gains pass them buy. If you wait until something is totally obvious, chances are it is obvious to a whole lotta other folks who have been buying also…….that means you are buying at a much higher price.

Note to James White, JMBA CEO. I’ll need you to get that drink in either Stop and Shop, Roche Brothers or BJ’s (BJ), Wal-Mart (WMT)or Target (TGT) or all of them in Central Mass. That would work really well for me as all are ~10min. from the house. BETTER still???? Get it on Amazon (AMZN) so I can just order it direct.

Thank you…