Luckin Coffee among potential bidders as Nestlé reviews Blue Bottle options

by ZHAO Xiaojuan

Speculation has intensified around Blue Bottle Coffee after market sources said Nestlé is weighing a sale of the business, with China's Luckin Coffee among potential bidders.

People familiar with the matter said the company is studying a possible acquisition of Blue Bottle Coffee. They added that it and its backer Centurium Capital are also assessing other targets, including the China operator of specialty coffee brand %Arabica, and that any discussions remain at an early stage and may not lead to a formal offer.

Jiemian News sought comment from Nestlé, Blue Bottle Coffee and Luckin Coffee. All declined to comment.

Blue Bottle, a U.S.-based specialty coffee brand, sold about 68% of its equity to Nestlé for roughly $500 million in 2017. In China, it operates 15 stores after entering the market in 2022. Globally, the chain had 140 stores across six countries and regions as of August 2025.

Market chatter suggests Nestlé may consider retaining Blue Bottle's brand intellectual property while selling only its physical café operations, allowing it to continue selling packaged products. Such a move would fit a strategic review under Nestlé's new chief executive Philippe Navratil, as the group looks to streamline its business and exit direct retail operations.

Blue Bottle's appeal lies primarily in its brand equity and premium customer base, analysts said. They added that Luckin's centralized roasting and sourcing platform could support Blue Bottle's operations if acquired, while access to Blue Bottle's specialty beans could also help lift product quality at Luckin's core brand.

An industry practitioner told Jiemian News that after an aggressive price war in China, Luckin regained profitability and expanded market share, but may have sacrificed some higher-quality demand.

Beyond Chinese coffee chains, other potential buyers could include specialty coffee operators and their financial backers. Investors such as PAG and General Atlantic, which have exposure to %Arabica, are familiar with the segment, though market participants cautioned that overlapping brand positioning could dilute Blue Bottle's emphasis on independence and scarcity.

Traditional private equity firms have also been mentioned, but people familiar with the sector said Blue Bottle's slow expansion and reliance on brand premium may limit its appeal as a full buyout target, making minority or structured investments more likely. Instead, some upscale retail groups and commercial property operators are seen as a more natural fit, viewing Blue Bottle as a brand that can enhance the positioning of shopping complexes rather than a standalone profit engine.

For Blue Bottle, the key question may be less about who acquires it than whether its premium positioning can scale as the global economy and coffee market evolve. How the brand balances growth with its identity will ultimately be tested by the market.