Chinese coffee giant Luckin Coffee is looking to move upmarket, as it explores acquisitions aimed at building a premium coffee business alongside its mass-market core.

Luckin is considering a bid for Nestle-owned Blue Bottle Coffee, Bloomberg reported, citing people familiar with the matter. Such a move would represent a significant step in Luckin’s push into the specialty coffee segment and an effort to strengthen its brand positioning beyond its value-driven model.

Founded in 2002, Blue Bottle operates more than 100 cafes across the US and East Asia, including 12 in mainland China and four in Hong Kong, and is widely regarded as a leading name in specialty coffee.

Earlier this month, Nestlé was reported to be working with investment bank Morgan Stanley to review a potential sale of Blue Bottle Coffee. The Swiss food and beverage group acquired the premium roaster in 2017 in a deal that valued the business at around $700m.

Luckin and Beijing-based private equity firm Centurium Capital are also reportedly weighing a bid for Lucky Ace International, which holds the exclusive master franchise rights for Japanese specialty coffee brand % Arabica in China and Hong Kong.

Founded in 2017, Luckin Coffee is one of the largest coffee chains in China with more than 24,000 locations globally.