Nestle has acquired a majority stake in premium coffee company Blue Bottle Coffee.

Nestle already owns brands such as Nespresso, Nescafe and creamer brand Coffeemate. Blue Bottle will expand Nestle’s reach in the premium coffee market.

“This move underlines Nestlé’s focus on investing in high-growth categories and acting on consumer trends,” Nestle CEO Mark Schneider said in a statement. “Blue Bottle Coffee’s passion for quality coffee and mission-based outlook make for a highly successful brand. Their path to scale is clearly defined and benefits from increasing consumer appreciation for delicious and sustainable coffee.”

Blue Bottle will continue to function as its own entity, Nestle said. Current management and employees will retain a minority stake. CEO Bryan Meehan and founder and Chief Product Officer James Freeman will retain their roles.

“My goal as CEO has been to secure a sustainable future for Blue Bottle that would enable it to flourish for many years to come,” Meehan said in a statement. “I’m excited to work with Nestlé to take a long-term approach to becoming a global leader in [specialty] coffee. We felt a real kinship with the team and knew it was the right move for us.”

Blue Bottle opened its first coffee shop in Oakland, California, 15 years ago. Many of its shops are in the Bay Area, but it has expanded to cities such as New York and Tokyo. It is expected to have 55 stores open by the end of the year, up from 29 at the end of last year, according to Nestle’s press release.

Silicon Valley has helped the coffee chain grow. Blue Bottle raised $120.7 million in funding over three rounds, according to Crunchbase.

Morgan Stanley, Twitter co-founder Ev Williams and GV, the venture capital arm of Google’s parent company, Alphabet, are among those who have invested, according to Crunchbase.

Source: Tech CNBC
Nestle takes majority stake in premium coffee company Blue Bottle