Nestlé has reportedly finalized the sale of Blue Bottle Coffee's global café operations to Centurium Capital—controlling shareholder of Luckin Coffee—for $400 million, per Bloomberg and Nikkei Asia, following initial Chinese media reports last week. Nestlé retains the brand's packaged goods; the move pairs Blue Bottle's premium expertise with Luckin's scale for expansion into high-end markets.
Building on reports from March 4 citing Jiemian News that Centurium Capital agreed to acquire Blue Bottle's cafés for under $400 million (with Nestlé keeping instant coffee and ready-to-drink products), advanced talks have culminated in a deal at exactly $400 million, according to Bloomberg and Nikkei Asia.
Centurium holds a 23% stake with majority voting control in Luckin Coffee, China's rapid-growth chain with over 30,000 stores worldwide (including nine in the U.S.). Luckin posted 43% revenue growth last year, serving 94 million monthly customers (up 31%), with 17.8% store margins and $514 million net income. CEO Jinyi Guo noted the shifting market: “Freshly-brewed coffee brands can no longer rely solely on pricing... this long-term competitiveness increasingly depends on an integrated set of capabilities like brand perception, customer experience, and store coverage.”
Blue Bottle, a 'third wave' specialist founded in Oakland with 100+ locations mainly in the U.S. and China (74 U.S. stores end-2024, 16th largest chain with 6% sales growth), entered China in 2022 but has only 15 stores there amid challenges. Globally, it operates around 140 cafés.
The deal equips Luckin with premium branding to complement its value model, especially in sophisticated Chinese markets against Starbucks (7% same-store growth via premiums last quarter). Blue Bottle will operate separately initially, supporting Luckin's disciplined U.S. expansion leveraging tech and operations. Official confirmation is awaited amid intensifying competition.