Jamba to launch bottled smoothies with Nestle USA

NEW YORK (Reuters) - Jamba Inc (JMBA.O) said on Tuesday it was partnering with Nestle USA to sell bottled smoothies and juice drinks at U.S. grocery stores, sending the company's shares up 28 percent.

Jamba, which operates the Jamba Juice chain, said the bottled drinks will go on sale in the second quarter of 2008.

Jamba told Reuters in March that it was looking to add a bottled drink to its product line and that it was in talks with a major food and beverage company to distribute it.

Nestle USA is a unit of Nestle (NESN.VX), the world's largest food and beverage company.

Jamba shares were up 96 cents at $4.35 on the Nasdaq.

(See here for "Shop Talk" -- Reuters' retail and consumer blog)

(Reporting by Martinne Geller; Editing by Lisa Von Ahn and Dave Zimmerman)