Blue coffee bottle may soon be under recent management. Cuddlethe Swiss food conglomerate and owner of Blue Bottle simply wants to simplify its portfolio, which may mean withdrawing from the specialty coffee chain.
As reported Reutersthe move is part of a strategic change of course by recent Nestle CEO Philipp Navratil, who, among other things, is seeking to wind down its physical retail business.
Founded in 2002 by James Freeman at an Oakland farmers market, Blue Bottle has grown to more than 100 locations across America and Asia, making it a prime focus for improvement efforts. Nestle is working with investment bank Morgan Stanley to consider options and may retain intellectual property rights to continue selling products while abandoning its retail presence. According to Reuters, the move reflects a broader industry trend away from bricks and mortar.
Other Nestle properties potentially up for sale include the vitamin brands Nature’s Bounty, Osteo Bi-Flex, Puritan’s Pride and its US private label business, as well as the Perrier and San Pellegrino water brands.
Blue Bottle is currently valued at around $700 million, but sources say the sale price would be lower.
The timing of the announcement is compelling to say the least. It comes just a few days later 10 unionized Blue Bottle locations in the United States issued by A four-day strike demand “a living wage, stable schedules, democratic control in the workplace and protection from harassment.” Reuters makes no mention of the connection between the two issues or the strike in general, but it’s tough to imagine that it won’t add fuel to the fire of a corporation that already wants to get rid of retail locations.
