"Selling Better Than Starbucks"... China's Top Local Coffee Chain Acquires Blue Bottle

China's Luckin Coffee has acquired the American specialty coffee brand Blue Bottle Coffee.

On March 4 (local time), Chinese media outlet Jiemian News reported that Centurium Capital, the investment firm behind Luckin Coffee, agreed to acquire all of Blue Bottle Coffee's global stores from Nestle. The transaction amount is reportedly less than 400 million dollars (approximately 585.4 billion won).

Luising Coffee. Luising Coffee Homepage

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According to the report, even after the transaction is completed, Nestle will continue to own Blue Bottle's consumer goods business, including coffee beans, instant coffee, and ready-to-drink beverages. Nestle had invested about 500 million dollars in 2017 to acquire approximately 68% of Blue Bottle's shares.

Centurium Capital is the main investor and operator of Luckin Coffee. The firm has invested in Luckin Coffee since its early days and is known to have led the company’s restructuring during its period of crisis.

Jiemian News added that Centurium Capital and Li Hui, Chairman of Centurium Capital, together hold a 23.28% stake in Luckin Coffee, and control over 53% of the voting rights, effectively securing management control. Chairman Li Hui was appointed as Chairman of Luckin Coffee in May 2024 and has since overseen company strategy.

This deal is likely to become a symbolic case in the coffee market, as it brings together a global premium brand representing the third wave of coffee and a rapidly growing Chinese coffee company with a strong focus on supply chain and scale strategies. Jiemian News analyzed that "this transaction could lead to changes in Blue Bottle's strategies in both China and global markets."

Blue Bottle logo. The photo is not related to any specific expression in the article. Photo by The Asia Business Daily Database

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So far, Blue Bottle's performance in the Chinese market has been considered below expectations. Blue Bottle entered the Chinese market in 2022 and currently operates a total of 15 stores in Shanghai, Shenzhen, and Hangzhou.

Globally, the expansion pace has also been relatively slow. As of August 2025, Blue Bottle operates approximately 140 stores in six countries and regions.

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Luckin Coffee is the largest local coffee specialty chain in China, often referred to as "China's Starbucks." After its founding in Beijing in October 2017, Luckin experienced explosive growth and was listed on the NASDAQ in 2019. However, in the following year, it was delisted after revelations of fabricated sales. The company subsequently overhauled its management and ownership structure, and in 2023, it surpassed Starbucks to become the number one coffee brand in China.

In the fourth quarter of last year, Luckin Coffee posted sales of 12.8 billion yuan (about 2.72 trillion won), marking a 33% increase year-on-year. The number of stores grew by 39% during the same period, reaching 31,048 locations (30,888 in China and 160 overseas).

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