Rising Chinese coffee giant Luckin Coffee is reportedly interested in a potential acquisition of Blue Bottle Coffee, according to a report in Bloomberg this week.
Luckin, China’s biggest coffee chain, and its chief backer Centurium Capital are considering a bid for Nestlé -owned Blue Bottle, as well as other potential acquisitions. The story cites % Arabica, another Chinese cafe operator, as a potential target, citing sources close to the matter.
The company had been linked with a bid for Coca-Cola-owned Costa Coffee previously, though that interest seems to have cooled.
Nestlé has reportedly engaged Morgan Stanley to help find a buyer for Blue Bottle, which the Swiss conglomerate paid up $500 million for a controlling stake in in 2017. The sale as part of broader strategic pull-back for Nestlé across categories, including premium water.