Swiss food and drink company Nestle made a bold move within the business industry. The company secured 68% stake in Blue Bottle for an investment of $425 million. The hip coffee roaster started off in the early 2000s under the leadership of James Freeman. By 2017, the company opened 50 coffee shops. Each of them is a popular location within the hipster coffee market. While the two companies seem to have little in common at first glance, they have the capacity to complement each other.
The New Nestle CEO Persuaded Blue Bottle Executives to Change Their Minds Regarding Collaboration
The $259 billion worth giant Nestle didn’t decide its recent business move out of a whim. On the contrary, the company put in a lot of efforts to persuade a coffee startup that wasn’t even looking for any business opportunity at the time to enter the Nestle family. Blue Bottle CEO Bryan Meehan claimed that the coffee roaster had no interest to listen to this proposition. However, Nestle CEO Mark Schneider was the powerful force that changed their minds.
“We weren’t looking for it, but I sort of blame [Nestle CEO] Mark Schneider.”
The new Nestle CEO has been in charge of the company since the beginning of this year. However, his main goal from the beginning was to expand the coffee segment of his organization. It was February when the two executives had a meeting in Brooklyn, New York.
Nestle Will Gain an Opening to the Hipster Coffee Market Thanks to Blue Bottle’s Pristine Reputation
While Blue Bottle has only 50 operational stores, the brand has become a reputed coffee icon among hardcore coffee enthusiasts. Therefore, the company has something valuable to offer to Nestle that money can’t buy, namely a reputation boost. On top of that, this new investment will assist the food and drink giant in its quest to offer a healthier line of products.
At the same time, Nestle can have a positive impact on Blue Bottle as well. The latter will gain access to extensive funds and expertise. Meehan claimed that their coffee roaster would perceive Nestle as their only business partner from now on. Together they can better focus on long-term strategies to grow both companies.
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