BUSINESS

Luckin-Backer Centurium Capital to Buy Blue Bottle Coffee From Nestlé

Published: Mar. 5, 2026 12:02 a.m. GMT+8

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A Blue Bottle Coffee store in Shanghai. Photo: VCG

Centurium Capital Management Ltd., the controlling shareholder of Luckin Coffee Inc., has agreed to acquire upscale coffee chain Blue Bottle Coffee from Nestlé S.A. for less than $400 million, Caixin has learned.

The deal represents a steep discount from the $700 million Nestlé had reportedly sought for full ownership of the U.S.-based brand. Centurium declined to comment. Nestlé didn’t respond to requests for comment.

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Centurium Capital is acquiring Blue Bottle Coffee from Nestlé for under $400 million, below the $700 million Nestlé initially sought.
Blue Bottle, an upscale U.S. coffee brand with 16 stores in China, was fully owned by Nestlé, which is divesting noncore assets.
Centurium controls Luckin Coffee but will keep it separate from Blue Bottle; Luckin is shifting upmarket as China's coffee sector price wars ease.

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Who’s Who

Luckin Coffee Inc.: Luckin Coffee Inc. is a mass-market giant in China's competitive coffee market, with Centurium Capital Management as its controlling shareholder. It aims to move upmarket, having recently opened its 30,000th store and adjusting prices from previous "9.9 yuan" promotions to a 12-17 yuan range. This strategic shift follows a cooled price war in the industry.

Nestlé S.A.: Nestlé S.A. is a Swiss food group that acquired a majority stake in Blue Bottle Coffee in 2017 for $425 million, later increasing its holding to 100%. Nestlé reportedly sought $700 million for Blue Bottle but agreed to sell it to Centurium Capital Management Ltd. for less than $400 million. This divestment aligns with Nestlé's strategy to shed noncore assets and concentrate on core business lines like coffee, pet care, nutrition, and food.

Blue Bottle Coffee: Blue Bottle Coffee, an upscale coffee chain founded in California in 2002, is being acquired by Centurium Capital Management Ltd. from Nestlé S.A. for under $400 million. Nestlé initially acquired a majority stake in 2017 and later full ownership. Blue Bottle entered mainland China in early 2020, positioning itself as a niche, high-end brand, with a limited presence of 16 stores across three cities and is currently unprofitable.

Starbucks China: In late 2025, Centurium Capital Management Ltd. was rumored to be bidding for Starbucks China. However, Starbucks China's operating rights were ultimately acquired by Boyu Capital for $2.4 billion.

Costa Coffee: Centurium Capital Management Ltd., the controlling shareholder of Luckin Coffee Inc., was reportedly weighing a potential acquisition of Costa Coffee in late 2025. This indicates Centurium Capital's active involvement in the coffee-sector dealmaking and its expanding ambitions within China's competitive coffee market.

Cotti Coffee: Cotti Coffee was involved in a "price war" within the coffee industry, offering a "9.9 yuan for any drink" promotion. However, Cotti Coffee scrapped this promotion starting February 1, leading to a cooling of the intense competition.

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What Happened When

2002：: Blue Bottle was founded in California.

2017：: Nestlé acquired a 68% majority stake in Blue Bottle for $425 million.

After 2017：: Nestlé increased its holding in Blue Bottle to 100%.

Early 2020：: Blue Bottle entered the Chinese mainland market.

2024：: Luckin scaled back its '9.9 yuan' promotions.

Late 2025：: Centurium was rumored to be bidding for Starbucks China and considering an acquisition of Costa Coffee.

Late 2025：: Boyu Capital acquired Starbucks China’s operating rights for $2.4 billion.

Fourth quarter of 2025：: Luckin’s CEO Guo Jinyi commented on the need to strengthen Luckin’s professionalism and broaden its price range during the earnings call.