San Francisco-based Jamba Juice has agreed to acquire Zuka Juice of Salt Lake City and its 96 locations nationwide in a straight stock deal, announced Friday. The two companies, who share similar standards and philosophies for product development, store design and customer relations, believe the acquisition serves them well in an industry that has yet to reach its full potential.
"The consolidation of Zuka Juice into Jamba Juice is a perfect marriage in light of our similar ethos," said Kirk Perron, CEO and founder of Jamba Juice. "They have created an experience that is complementary to Jamba Juice. The transition should be smooth and will give Jamba Juice entry into many new markets, as well as fortification in markets where we co-exist. This is an important step in an industry that is still in an early phase of expansion."
The acquisition will introduce Jamba Juice to several new markets in Oregon, Washington, Idaho, Nevada and Texas, where Zuka Juice has a solid market presence. In Colorado and Arizona, where the two brands co-exist, Jamba Juice will fortify its position by converting the competing Zuka Juice stores into Jamba Juice stores. The Jamba Juice Co. will assume control of all support center operations, including accounting, real estate development, management information systems and human resources.
According to Zuka Juice founder and CEO Dave Duffin, Zuka Juice will retain its name in Salt Lake City, where the company was founded in 1995 and commands exceptional brand awareness. Duffin will become a board member for Jamba Juice Co., whose products include blended-to-order smoothies, fresh-squeezed juices, soups and healthy snacks. There are currently more than 125 Jamba Juice store locations with additional stores slated to open this spring in Hawaii and the Midwest.