Nestlé considering Blue Bottle Coffee sale - summary
- Nestlé is reportedly exploring a sale of Blue Bottle Coffee brand
- The company is working with Morgan Stanley to review strategic options
- Blue Bottle Coffee was acquired in 2017 for around $700 million
- Sale would signal Nestlé shifting focus to scalable global coffee brands
- Move aligns with industry trend of streamlining portfolios for core growth
Food and beverage giant Nestlé is planning to offload California-based coffee brand Blue Bottle Coffee. That’s according to a new report published on Reuters.
The Swiss food giant is rumoured to be working with investment bank Morgan Stanley to review its options, which include the potential sale of its Blue Bottle Coffee chain.
The move is part of a broader strategic move to streamline the company’s portfolio under new Chief Executive Philipp Navratil.
Nestlé and Blue Bottle Coffee
Nestlé acquired a majority stake in Blue Bottle Coffee back in 2017, valuing the premium roaster at roughly $700m (€602m). However the sale is expected to be lower than that.
Nestlé operates around 100 Blue Bottle locations across the United States and Asia, as well as selling Blue Bottle-branded products like coffee grounds and mugs.
According to Reuters, one source said Nestlé could decide to sell the cafes but retain the brand’s intellectual property to continue selling the products.
Nestlé’s bigger coffee businesses include Nescafé and Nespresso.
The news comes in the wake of a similar move by beverage brand Coca-Cola, which is currently in talks to offload coffee chain Costa Coffee.
Nestlé’s coffee business
If Nestlé proceeds with the sale, it would mark a significant shift in its premium coffee strategy.
Blue Bottle Coffee was once seen as a way for Nestlé to capture the fast-growing specialty coffee segment, complementing its powerhouse brands Nescafé and Nespresso.
Offloading the chain suggests Nestlé may be doubling down on scalable, global brands rather than niche café operations.
This could free up resources for innovation and expansion in its core coffee portfolio, reinforcing Nestlé’s position in the competitive global coffee market.
Nestlé has not yet responded to request for comment.
