Last month, it was reported that Nestle may be considering selling its stake in Blue Bottle Coffee. The company is considering divesting all time-honored locations, which would mean it would have to shift investment into the Oakland-based coffee chain. There was no mention of an interested buyer at the time, but it appears one has emerged. Luckin Coffee, a Chinese coffee chain looking to challenge Starbucks, has expressed interest in buying Blue Bottle.
As one of the sources said, I am speaking on condition of anonymity Bloomberg that Luckin is considering making an offer as part of a broader strategy to establish itself in the world of premium coffee. Along with Blue Bottle, Luckin and its financial backer Centurium Capital are also considering acquiring the operator of all % Arabica locations in China.
Luckin and Centurium also considered another major acquisition, Costa Coffee from Coca-Cola, which is also looking to divest part of its coffee portfolio, but that deal is believed to be off the table.
It’s been a wild ride for Luckin. From its initial explosive growth and overtaking Starbucks in China, to its delisting from the Modern York Stock Exchange, to its re-emergence and opening of its first US location. And now they are involved in the purchase of one of the world’s largest players in the specialty coffee market.
The deal is still in the very early stages and may never come to fruition, but it’s certain that the coffee brand whose service model is “as quickly as possible” will acquire one of the original leaders in the ponderous coffee club. As far as I remember, Blue Bottle is the first major specialty coffee brand to have its own pour-over brewer. And now, ironically, Blue Bottle, a specialty coffee brand, is being sold like a commodity. So here goes. “It” represents the confusion between specialty coffee and corporations.
