Nestlé Divests Troubled Coffee Chain in Strategic Overhaul

Under the leadership of its new CEO, Philipp Navratil, Nestlé is taking decisive action to reshape its portfolio. The company has initiated a sale process for its majority stake in the premium coffee chain Blue Bottle Coffee, an acquisition now widely viewed as a costly misstep. Originally purchased for approximately $700 million, the retail business is being marketed with the assistance of investment bank Morgan Stanley. Market observers anticipate the final sale price will fall significantly short of the original investment.

The move to divest Blue Bottle Coffee, acquired in 2017, signals a clear strategic pivot. The chain operates about 100 cafes across the United States and Asia. However, the capital-intensive nature of Read more...