Nestle acquires majority stake in coffee roaster Blue Bottle Coffee

Food and beverage giant Nestle has agreed to buy a majority stake in Blue Bottle Coffee, a California-based specialty coffee roaster and retailer for an undisclosed price to foray into the rapid-growing, super premium coffee shop segment.

Management of Blue Bottle Coffee will keep a stake of 32% following the transaction which is expected to help the company grow coffee technologies and in its quest for making inroads for superlative coffee.

Founded in 2002, Blue Bottle Coffee operates coffee cafes in the California, New York, Miami, Washington and Tokyo.

Blue Bottle Coffee with the new equity investment intends to grow its product range of Nola cartons, Cold Brew cans and other consumer packaged goods and also its Perfectly Ground pre-ground coffee while broadening distribution to an international audience.

Blue Bottle Coffee cafe. Photo courtesy of Blue Bottle Coffee.

Commenting on Nestle acquisition of Blue Bottle Coffee, Nestlé CEO Mark Schneider said: “This move underlines Nestlé’s focus on investing in high-growth categories and acting on consumer trends.

“Blue Bottle’s passion for quality coffee and mission-based outlook make for a highly successful brand. Their path to scale is clearly defined and benefits from increasing consumer appreciation for delicious and sustainable coffee.”

The Nestle investment in the 2002-founded Blue Bottle Coffee is also likely to facilitate openings of new cafes and roasteries both in the US and outside of it.

Blue Bottle Coffee aims to grow by 70% this year with 25 new cafes slated to be opened this year including one in the upcoming World Trade Center. The coffee roaster and retailer also plans to foray into three new markets of Miami, Boston and Washington, D.C.

Blue Bottle Coffee founder James Freeman commenting on the Nestle acquisition of Blue Bottle Coffee said: “Fifteen years ago I started this company with the goal of roasting, brewing, and selling superlative coffee.

“Nestlé’s belief in our coffee, our process, and, most importantly, our people, assured us that this is a deal that will enable us to dream longer and further into the future than I previously imagined possible.”

Post acquisition, Blue Bottle Coffee will continue to operate as an independent business, while having complete access to the well-recognised capabilities of Nestle in coffee and its robust global consumer reach.