Deals
Nestle Is Said to Pay $425 Million to Buy Blue Bottle Coffee
- Swiss food giant said to obtain 68% stake in cafe operator
- Blue Bottle, coveted by consumers, is experiencing growth boom
The Blue Bottle coffee stand on the High Line in New York on Oct. 24, 2014.
Photographer: Kena Betancur/Getty ImagesThis article is for subscribers only.
Nestle SA agreed to acquire a majority stake in Blue Bottle Coffee as the Nespresso owner seeks to bolster its U.S. presence amid increasing demand for upscale blends of java.
Nestle will pay about $425 million for a 68 percent stake in the Oakland, California-based company, according to a person familiar with the matter who asked not to be identified because the details haven’t been made public. Blue Bottle sells coffee directly to customers online and operates 40 shops in the U.S. and Japan. This number is expected to grow to 55 by the end of 2017, up from 29 a year earlier, Nestle said Thursday.