Nestlé puts Blue Bottle Coffee up for sale in major portfolio overhaul
Morgan Stanley hired to explore Blue Bottle exit as Nestlé targets CHF 3B savings and 16,000 job cuts.
USA – Nestlé has hired Morgan Stanley to explore strategic options for its Blue Bottle Coffee chain, including a possible sale, sources told Reuters.
The review is part of a broader portfolio simplification drive led by new Chief Executive Philipp Navratil, who is steering the Swiss giant away from operating physical cafés.
In October, Nestlé raised its cost-savings target to 3 billion Swiss francs (US$3.7 billion) by 2027 and announced plans to cut 16,000 jobs, about 6 percent of its global workforce, over the next two years.
Nestlé took majority control of Blue Bottle in 2017 in a deal valuing the Oakland-founded premium coffee brand at around US$700 million. Sources indicate any sale would likely occur at a lower valuation.
The chain currently operates roughly 100 stores across the United States and Asia and also sells branded retail products. One option under consideration is divesting the café network while retaining Blue Bottle’s intellectual property to continue selling packaged coffee and merchandise alongside Nestlé’s larger Nescafé and Nespresso businesses.
Blue Bottle was started by James Freeman in 2002, with its first San Francisco location opening in 2005, and built a loyal following for its meticulous pour-over brewing style.
The potential disposal follows similar reviews of non-core assets. In July, Nestlé launched a strategic assessment of several vitamin brands, including Nature’s Bounty, Osteo Bi-Flex, and Puritan’s Pride, as well as its U.S. private-label supplements business.
The company is also preparing to sell its international premium water unit, which includes Perrier and S.Pellegrino.
For the first nine months of 2025, Nestlé reported total sales of CHF 65.9 billion, with coffee and confectionery driving the strongest organic growth. The Nespresso division posted robust mid-single-digit expansion.
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