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    Nestlé, Jamba Suspend Jamba Juices

    Ready-to-drink beverages plagued by out-of-stock issues.

    GLENDALE, Calif. -- Nestle USA is suspending shipments of Jamba Ready-To-Drink Smoothies and Juices, which have been plagued by out of stocks, according to a joint statement.

    "We have made the difficult decision to suspend production and shipments of our Jamba Ready-to-Drink Smoothies and Juices," Rob Case, president of Nestlé USA Beverage Division, said in a statement. "We have faced challenges recently with manufacturing on a consistent basis, resulting in inventory and out-of-stock issues. This is particularly disappointing given the strong reception we have received from consumers and customers alike. We at Nestlé are fully committed to reassessing our Jamba ready-to-drink beverage proposition so that we can come back stronger and positioned for success in the future."

    Since the launch of RTD line six months ago, Jamba carved out a firm foothold in the super-premium juice category, according to the report. "Customer sell-in and feedback exceeded expectations, and the six SKUs all rank among the top in the category for consumption," James White, president and CEO of Jamba Inc., based in Emeryville, Calif., said in a statement. "While this is an unfortunate event, this suspension will provide the opportunity to evaluate new manufacturing solutions, which could enable the Jamba brand to secure an even stronger position in ready-to-drink beverages."

    Jamba Smoothies and Jamba Juicies have been available in grocery and convenience stores in California, Oregon, Utah, Nevada, Arizona, Idaho, Washington and Colorado.

    Nestle USA and Jamba Juice announced their worldwide licensing agreement to produce and distribute a line of healthy ready-to-drink beverages under the Jamba brand name in December 2007.

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