Nestlé is selling its Blue Bottle Coffee business to Beijing-based private equity firm, Centurium Capital, a major shareholder of Luckin Coffee.

Nestlé first acquired its 68 per cent stake in Blue Bottle in 2017.

The long-planned deal was confirmed in Nestle’s first-quarter financial results. It is understood to have closed for a fee of around US$400 million.

Founded in 2002 in California, Blue Bottle Coffee is known as a premium brand that prioritises sustainable, specially made coffee. With more than 100 locations in the US and Asia, it is set to expand Centurium’s footprint even further.

The move marks a shift for Nestlé – the world’s largest food and beverage company – away from independent coffee operations. Still operating Nescafé, Nespresso, and at-home Starbucks products, Nestlé’s brick-and-mortar coffee portfolio in Asia is expected to shift towards the cold brew market.