Nestlé’s Strategic Shift: A $700 Million Coffee Bet Nears Its Conclusion

When a major acquisition fails to deliver expected returns, what comes next? This is the strategic dilemma currently facing Nestlé, as reports indicate the Swiss food and beverage conglomerate is seeking a buyer for Blue Bottle Coffee. The premium coffee chain was acquired in 2017 for approximately $700 million, but a potential sale is now likely to command a significantly lower price. Under the leadership of CEO Philipp Navratil, the company is executing a profound portfolio transformation. Investors are closely watching to assess the implications of this strategic pivot for Nestlé’s equity.

Nestlé’s move is part of a wider trend among consumer goods giants. The company is not alone Read more...