Luckin Coffee Buys Nestlé's Blue Bottle for Less Than Half Asking Price

China's largest coffee chain expands its footprint in the US with acquisition of upscale coffee brand.

Published on Mar. 5, 2026

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Luckin Coffee, China's largest coffee chain, is acquiring the upscale Blue Bottle Coffee brand from Nestlé SA for less than $400 million - nearly half the $700 million asking price. The deal comes as Luckin rapidly expands in the US, where it now has 10 locations in New York City, offering low-cost coffee options that are attracting customers away from pricier chains like Starbucks.

Why it matters

The acquisition of Blue Bottle by Luckin Coffee represents the Chinese company's continued push into the US market, where it is competing with established coffee giants like Starbucks by offering a more affordable, tech-driven model. This deal highlights Luckin's ambitions to grow its presence and challenge traditional coffee shop culture in major US cities like New York.

The details

Centurium Capital Partners, the buyout firm that helped turn around Luckin Coffee, is acquiring the upscale Blue Bottle Coffee chain from Nestlé SA for less than $400 million. This is nearly half the $700 million asking price that Nestlé was seeking. Blue Bottle Coffee was founded in 2002 in Oakland, California and has locations across the US, China, Hong Kong, Japan, Singapore and South Korea. Luckin Coffee was established in 2009 in Beijing and has rapidly expanded, now operating 30,000 stores in China and 10 locations in New York City.

  • Luckin Coffee set up shop in New York City in June 2025.
  • Luckin Coffee just opened its 30,000th store in China, according to the South China Morning Post.

The players

Luckin Coffee

China's largest coffee chain that is rapidly expanding into the US market, competing with established players like Starbucks by offering a more affordable, tech-driven model.

Centurium Capital Partners

The buyout firm that helped turn around Luckin Coffee and is now acquiring Blue Bottle Coffee from Nestlé SA.

Blue Bottle Coffee

An upscale coffee chain founded in 2002 in Oakland, California that has locations across the US, China, Hong Kong, Japan, Singapore and South Korea.

Nestlé SA

The global food and drink company that previously owned the Blue Bottle Coffee brand.

Alexa Speciale

A Manhattan resident and content creator who is a fan of Luckin Coffee's bargain brews.

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What they’re saying

“Everything always tastes a little bit better when it's cheaper.”

— Alexa Speciale, Content creator (NY Post)

“Embracing automation and quick service is a way to keep prices low in a competitive market like New York.”

— Peter Giuliano, Coffee expert (NY Post)

What’s next

The deal between Luckin Coffee and Nestlé for the acquisition of Blue Bottle Coffee is expected to close in the coming months, further expanding Luckin's footprint in the US market.

The takeaway

Luckin Coffee's acquisition of the upscale Blue Bottle brand for less than half the asking price highlights the Chinese company's ambitions to disrupt the traditional coffee shop model in the US by offering a more affordable, tech-driven alternative. This deal signals Luckin's continued push to challenge established players like Starbucks and cater to cost-conscious consumers in major cities like New York.