Nestlé buys control in California coffee chain Blue Bottle in $425m deal
Zurich/New York/San Francisco — Nestlé agreed to acquire a majority stake in coffee brand Blue Bottle Coffee as the Nespresso owner seeks to bolster its US presence amid increasing demand for upscale blends. Nestlé will pay about $425m for a 68% stake in the Oakland, California-based company, according to a person familiar with the matter who asked not to be identified because the details have not been made public. Blue Bottle sells coffee directly to customers online and operates 40 shops in the US and Japan. This number is expected to grow to 55 by the end of 2017, up from 29 a year earlier, Nestlé said Thursday. Nestlé’s number one position in the global packaged coffee market has been challenged by JAB Holding, the investment company of Europe’s billionaire Reimann family, which has spent more than $30bn expanding its coffee empire with acquisitions including Keurig Green Mountain and Peet’s. Growth market Nestlé CEO Mark Schneider has singled out java as one of the Swiss compan...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.