Posted by Brand Week on May 05, 2008 at 13:36:45:
Tie-ins: Jamba Juice Wants To Stay Top Banana In Smoothies
Deal with Dole aims to ward off competition from McD's, Starbucks.
May 05, 2008
By Eric Newman
The world of smoothies is getting a bit bumpy at Jamba Juice as both McDonald's and Starbucks have announced they are preparing to enter the category. In response to those moves, and also as part of a strategy to expand beyond the confines of its stores, Jamba Juice has signed a multitier marketing partnership with Dole Foods.
Tens of millions of Dole bananas are now hitting supermarkets with a sticker that reads: "I want to Jamba" alongside the chain's tornado logo. The bulk are being shipped to markets in the Western U.S., where many of Emeryville, Calif.-based Jamba Juice's 712 stores are located.
The sticker directs people to co-branded JambaFruit.com, where Jamba and Dole offer smoothie recipes and encourage visitors to post their own. An online contest will award a two-night stay at a Four Seasons Hotel in California.
"[As we] see McDonald's and Starbucks entering the smoothie business, we need to prove that we have a real fresh fruit used in our product," said Kim Larson, vp-brand experience at Jamba Juice. "Dole is the leader in fresh fruit. That sets us apart from the competition."
Concurrently, the alliance gives Dole presence in the restaurant channel. Dole will focus on pushing bananas, strawberries and pineapple products via recipe cards in stores throughout Jamba's network.
"We're getting Jamba visibility in an area where they normally wouldn't have it, and we're getting into a channel where we normally wouldn't be seen," said Marty Ordman, vp-marketing and corporate communications at Dole, Westlake Village, Calif. "If you can align yourself with a brand that has the same attributes—we're both all about nutrition and health—it's a win-win situation."
According to Jeff Davis, president of restaurant marketing research firm Sandleman & Associates, San Clemente, Calif., the move should play well for Jamba, particularly as it goes up against formidable competitors with a comparatively anemic ad budget. Jamba spent $1 million on U.S. ads in 2007, per Nielsen Monitor-Plus.
"It sounds like a great deal for Jamba because Dole is huge and they have great reach," said Davis. enewman@brandweek.com