Nestlé Acquires Majority Interest In Blue Bottle Coffee

Posted On: 9/18/2017

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GLENDALE, CA -- Nestlé said it has purchased a majority stake in Blue Bottle Coffee, a specialty coffee roaster and retailer based in Oakland, CA. Established 15 years ago, Blue Bottle operates coffee shops in major U.S. cities and in Japan, with a minimalist style that integrates elements of the surrounding neighborhood. 

Blue Bottle Coffee expects the number of its coffee shops to reach 55 by the end of 2017, nearly double the 29 it had at the end of last year. The company also sells ready-to-drink and roast and ground products.

Blue Bottle Coffee will continue to operate as a standalone entity. The current management and employees will retain a minority stake and continue to run the business. Founder Bryan Meehan will remain as chief executive and founder James Freeman will continue as chief product officer.

"This move underlines Nestlé's focus on investing in high-growth categories and acting on consumer trends," said Nestlé chief executive Mark Schneider. 

Nestlé said the Blue Bottle Coffee acquisition will strengthen its position in the U.S. super premium coffee shop segment with an iconic brand, and build upon its well-established Nescafé and Nespresso brands internationally. The acquisition also positions Nestlé to grow in super premium ready-to-drink and roast and ground coffee, largely through online subscription.