Nestle, Jamba Close To Renewing US Fruit Energy Drinks Tie-Up
October 05 2010 - 10:14AM
Dow Jones News
Nestle SA (NESN.VX) said Tuesday that it is close to renewing a
cooperation with U.S.-based smoothies maker Jamba Juice Inc. (JMBA)
over fruit-based energy drinks, an attempt to compete with other
caffeinated beverages such as Red Bull.
The Vevey, Switzerland-based food and beverage firm didn't
disclose the financial terms of the partnership, which plans to
sell energy drinks with natural caffeine under the Nestle-Jamba
brand in the northeastern U.S. from next year.
Nestle's potential deal with Jamba follows the purchase of
drinks manufacturer Vitality Foodservice nearly one year ago, for
an undisclosed price.
"Nestle 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," Rob Case, Nestle's
head of beverages, said in a statement.
While small for Nestle, which reported first-half sales of 55.34
billion Swiss francs ($56.47 billion), Jamba could serve up a new
consumer segment for the Swiss company, independent food industry
analyst James Amoroso said.
"Time will tell, but it's a potential new segment; it makes an
awful lot of sense to have something natural and good for you--I
think that's quite clever," Amoroso said.
Nestle shares were little-changed following the news, analysts
with Zuercher Kantonalbank said because the potential deal "won't
move the needle" for Nestle. At 1436 GMT, Nestle stock was up
CHF0.40, up 0.8%, at CHF52.55, in an overall higher broader Swiss
blue-chip market.
-By Katharina Bart, Dow Jones Newswires; +41 43 443 8043;
katharina.bart@dowjones.com
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