The world’s largest producer of coffee is looking to get into the high-end coffee market with a new purchase.
Nestle is hoping to enter the high-end coffee market with its latest acquisition. According to a recent Nation’s Restaurant News article, the world’s largest coffee producer has acquired a majority stake in Oakland-based Blue Bottle Coffee. The deal valued at $700 million for 68-percent share of the company.
“This move underlines Nestlé’s focus on investing in high-growth categories and acting on consumer trends,” said Nestlé CEO Mark Schneider. “Blue Bottle Coffee’s passion for quality coffee and mission-based outlook make for a highly successful brand. Their path to scale is clearly defined and benefits from increasing consumer appreciation for delicious and sustainable coffee.”
Blue Bottle will continue operating as a stand-alone entity and hopes to grow to 55 shops in the U.S. and Japan by the end of the year. With the brand’s new premium, ready-to-drink coffees and ground coffee products being sold in retail shops and online, there is now more competition in the market for coffee connoisseurs willing to pay a higher price.
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