Swiss giant Nestlé, known for its vast coffee portfolio, is reportedly considering offloading Blue Bottle Coffee. According to Reuters, three anonymous sources confirm that Nestlé is working with an investment bank to assess various options, including a potential sale of Blue Bottle. This move comes as no surprise given the trend towards consolidation in the specialty coffee sector.
Established in Oakland, California, Blue Bottle Coffee was acquired by Nestlé in 2017 for around $700 million, causing a stir in the world of specialty coffee. The deal marked another step in the big-money consolidation trend that has been sweeping through craft-focused or “Third Wave” specialty coffee.
However, recent labor issues could be a factor influencing Nestlé’s decision to review its options. Over the Thanksgiving holiday weekend, at least nine Blue Bottle Coffee locations in the U.S. witnessed a work stoppage, with around 120 employees walking off their jobs, alleging unfair labor practices and stalled contract negotiations.
If the sale were to go through, Blue Bottle would join the ranks of other high-end brands in Nestlé’s global coffee portfolio, such as Nescafé, Nespresso, and Starbucks Coffee At Home. Interestingly, coffee conglomerate JDE Peet’s, which is being acquired by Keurig Dr Pepper, has adopted a similar strategy with its ownership of Stumptown Coffee Roasters and Intelligentsia Coffee.
Will other conglomerates follow suit, further consolidating the market.
As the story unfolds, it will be intriguing to see how this potential sale impacts the specialty coffee landscape. Will other conglomerates follow suit, further consolidating the market? Or will Blue Bottle’s unique identity and loyal following attract a different buyer?
1. Nestlé is exploring the possibility of selling Blue Bottle Coffee as part of a broader portfolio review under new CEO Philipp Navratil. 2. The potential sale comes amidst labor issues at several Blue Bottle locations in the U.S. 3. If sold, Blue Bottle would join Nestlé’s other high-end coffee brands like Nescafé, Nespresso, and Starbucks Coffee At Home.
CLOSE: What are your thoughts on this potential sale? Could it mark a significant shift in the specialty coffee industry? Share your insights in the comments below!
Questions & Answers
Who is considering selling Blue Bottle Coffee?
Nestlé, the Swiss multinational food and drink processing conglomerate.
For how much could Nestlé sell Blue Bottle Coffee?
The sale price has not been disclosed yet, as negotiations are ongoing.
Information sourced from industry reports and news outlets.
