Press Release: Nestle: Nestlé acquires majority interest in Blue Bottle Coffee

Nestlé S.A. / Nestlé acquires majority interest in Blue Bottle

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Vevey, 14 September 2017

Nestlé acquires majority interest in Blue Bottle Coffee

Nestlé today announced that it has acquired a majority stake in

Blue Bottle Coffee, a high-end speciality coffee roaster and retailer

based in Oakland, California.

Over the last 15 years, Blue Bottle Coffee has achieved iconic status

amongst discerning coffee drinkers. It offers one of the highest quality

coffees available, with an uncompromising attention to taste, freshness

and sustainability.

The company operates coffee shops in major US cities and in Japan, with

a unique minimalist style that also incorporates elements of the

surrounding neighbourhood. The total number of Blue Bottle Coffee shops

is expected to reach 55 by the end of 2017, up from 29 at the end of

last year. Blue Bottle Coffee has also launched super premium

ready-to-drink and roast and ground products, sold online and in the

retail market.

Blue Bottle Coffee will continue to operate as a stand-alone entity,

while having full access to Nestlé's well-recognised capabilities

in coffee and its strong global consumer reach. The current management

and employees will retain a minority stake and continue to run the

business with the same entrepreneurial spirit that has made the brand so

successful. That includes Bryan Meehan remaining as CEO and founder

James Freeman as Chief Product Officer.

Nestlé CEO Mark Schneider: "This move underlines Nestlé's

focus on investing in high-growth categories and acting on consumer

trends. 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."

With the acquisition of Blue Bottle Coffee, Nestlé is entering the

fast-growing, super premium coffee shop segment with an iconic brand for

discerning coffee drinkers. Blue Bottle Coffee allows Nestlé to

strengthen its position in the US coffee market, the largest in the

world, as well as internationally, building on success in Japan. It also

offers opportunities to grow in super premium ready-to-drink and roast

and ground coffee, largely through online subscription.

Blue Bottle Coffee CEO Bryan Meehan: "My goal as CEO has been to secure

a sustainable future for Blue Bottle Coffee that would enable it to

flourish for many years to come. I'm excited to work with Nestlé to

take a long-term approach to becoming a global leader in speciality

coffee. We felt a real kinship with the team and knew it was the right

move for us."

Nestlé is the world's largest coffee producer, with brands

including Nescafé and Nespresso. Nescafé is the world's

leading coffee brand available in over 180 countries, with nearly 5,500

cups consumed every second. Nespresso has more than 600 boutiques and

about 465,000 daily visits to its e-commerce platforms.

Contacts

Media: Robin Tickle Tel.: +41 21 924 22 00

Investors: Steffen Kindler Tel.: +41 21 924 3509

This announcement is distributed by Nasdaq Corporate Solutions on behalf

of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely

responsible for the content, accuracy and originality of the information

contained therein.

Source: Nestlé S.A. via Globenewswire

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Nestlé S.A.

Avenue Nestlé 55 Vevey Switzerland

WKN: 887208;ISIN: CH0038863350;

http://www.nestle.com

(END) Dow Jones Newswires

September 14, 2017 12:01 ET (16:01 GMT)