External Content

The following content is sourced from external partners. We cannot guarantee that it is suitable for the visually or hearing impaired.

(Bloomberg) -- Nestle SA agreed to acquire a majority stake in U.S. cafe operator Blue Bottle Coffee as the Nespresso owner seeks to bolster its lead in the java market amid increasing demand for upscale blends.

The Oakland, California-based company operates shops in the U.S. and Japan and is expected to reach 55 stores by the end of 2017, up from 29 a year earlier, Nestle said in a statement Thursday. It didn’t disclose financial details.

Nestle’s No. 1 position in the packaged coffee market has been challenged by JAB Holding Co., the investment company of Austria’s billionaire Reimann family, as it’s spent more than $30 billion expanding its coffee empire with acquisitions including Keurig Green Mountain and Peet’s. Nestle Chief Executive Officer Mark Schneider has singled out coffee as one of the Swiss company’s biggest growth opportunities.

“This move underlines Nestle’s focus on investing in high-growth categories and acting on consumer trends,” Schneider said in the statement.

Blue Bottle, which sells coffee within 48 hours of roasting it, gives Nestle a bigger bite of the U.S. market -- the world’s largest. It also offers opportunities for Nestle to grow in ready-to-drink and roast and ground coffee, especially through online subscription.

The sector has seen increasing consolidation, especially in North America. Italy’s Lavazza agreed to buy Kicking Horse Coffee, a Canadian maker of organic coffee, in May.

To contact the reporter on this story: Corinne Gretler in Zurich at cgretler1@bloomberg.net.

To contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, Thomas Mulier

©2017 Bloomberg L.P.

Neuer Inhalt

Horizontal Line

swissinfo EN

Teaser Join us on Facebook!

Join us on Facebook!

subscription form

Form for signing up for free newsletter.

Sign up for our free newsletters and get the top stories delivered to your inbox.

Click here to see more newsletters