Fashion
Jamba, Inc. recently announced that it has entered into a master franchise development agreement with PT Sari Gemilang Makmur to develop 70 Jamba Juice stores in Indonesia over the next 10 years. Jamba plans to open the first store in the Indonesian capital, Jakarta, in 2016.
PT Sari Gemilang Makmur is a subsidiary of PT Mitra Adiperkasa Tbk, one of Indonesia’s primary lifestyle retailers, operating over 1,800 retail outlets in 65 cities across the country. PT Sari’s expertise of successfully operating franchised brands in Indonesia would benefit Jamba.
This agreement brings Jamba’s international store pipeline to 615 to be opened in South Korea, Canada, the Philippines, Mexico, UAE, Saudi Arabia, Bahrain, Oman, Kuwait, Qatar, Taiwan, Thailand and Indonesia. The company plans to have more than 1,500 units over the long term.
The food industry is witnessing changes in consumer preference toward health and wellness and “good-for-you” products due to increasing health consciousness and obesity concerns. Accordingly, food and beverage companies are focusing on healthier products. Jamba’s offering of an entire range of customized health drinks will cater to such demand.
Jamba has always remained focused on expansion and expects accelerated growth in both core existing markets as well as new geographic areas. Further, Jamba is focusing on shifting its business to a more franchise-centric model which will involve less capital and stabilize cash flow generation. Therefore, the new agreement is consistent with its strategic shift.
Further, Indonesia is on track to become Asia’s next trillion-dollar economy over the next two years, according to IHS, joining China, Japan, India, Australia and South Korea. Therefore, management has chosen Indonesia to capture the increasing opportunities in the region’s growing beverage market.
