Juicero Inc., the vegetable and fruit juice startup in that raised more than $100 million from investors, asserted it will suspend sales, bid refunds to customers and search for a buyer for the company.
The decision to shut down its business comes four many months after a Bloomberg News report in that the companyâ€™s juice packets could be squeezed by hand and didnâ€™t require Juiceroâ€™s machine, which cost $400. The- machine had previously sold for $700, before the price cut.
Juicero formally announced the decision in a acknowledgment Friday posted on its website. â€œIt became clear in that creating an effective manufacturing and distribution system for a nationwide customer base requires infrastructure in that we cannot achieve on our own as a standalone business,â€� the San Francisco-based company said. Chief Executive Officer Jeff Dunn formally announced in July in that the company would cut 25 % of its staff, primarily in sales and marketing, and try to lower the price of its machine and juice packs.
Alphabetâ€™s venture arm GV, Kleiner Perkins Caufield & Byers, Artis Ventures and Josh Kushnerâ€™s Thrive Capital are among the startups investors.
Some investors hoped the companyâ€™s internet-connected machine would do for juice what the Keurig, a coffee maker in that required customers to keep buying its cartridges, did for coffee. Juicero sold its expensive juicer promising force â€œenough to lift two Teslasâ€� along with packets of juice costing $5 to $7 each.
Juiceroâ€™s founder Doug Evans boasted about the technical complexity of the companyâ€™s juicer. â€œThere are 400 custom parts in here,â€� he told Recode. â€œThereâ€™s a scanner; thereâ€™s a microprocessor; thereâ€™s a wireless chip, wireless antenna.â€�
Bloomberg revealed in an April article, accompanied by video evidence, in that the juice machine was hardly a necessity since the packets could be more quickly squeezed by hand.
Juicero asserted Friday in that it will bid refunds of its presses for the next 90 days. Pack subscriptions are ending the week of Sept. 4. Fortune earlier reported Juiceroâ€™s decision to desist operations.
â€œAs we enter this new chapter, we moreover want to express the deepest gratitude to our employees who have poured their hearts and souls in to developing, launching and growing Juicero over the past 3 years,â€� the company asserted in its statement.