Luckin Coffee backer in talks to buy Blue Bottle from Nestlé

Centurium Capital, China-based Luckin Coffee’s largest stakeholder, is reportedly to acquiring third wave coffee pioneer Blue Bottle from Nestlé SA for just under USD $400 million. Neither company has publicly confirmed the deal.

Under the reported terms, the private equity firm will acquire Blue Bottle Coffee’s physical café locations, while Nestlé keeps the consumer-packaged goods side of the business, covering instant coffee and ready-to-drink products. Blue Bottle, which was founded in Oakland, California in 2002, operates cafés throughout the United States and in China, Hong Kong, Japan, Singapore, and South Korea. Nestlé purchased a 68% stake in Blue Bottle in 2017 for $425 million.

The purported acquisition comes as China’s largest coffee chain – which recently opened its 30,000th store in China – continues its aggressive expansion. Acquiring Blue Bottle gives Centurium and Luckin a premium brand to expand their footprint, contrasting with Luckin’s high-volume, lower-cost model — its typical offerings are priced around USD $1 or $2 for an Americano or latte. This move broadens Luckin’s price range and continues its direct aim at Starbucks (which is selling most of its China business to a local investment firm), as the value-priced chain opened its first high-end store in Shenzhen in February.

Setting its sights on Western markets, Luckin Coffee opened its first US locations in New York City in 2025. It now operates 10 stores throughout Manhattan.

Acquiring Blue Bottle would give Luckin a well-known premium brand without having to build a premium coffee division from the ground up and extends its reach beyond the value-focused segment where it has been operating thus far.

News of Centurium’s/Luckin’s bid for Blue Bottle first broke in late 2025.