Luckin Coffee Acquires Blue Bottle in Landmark Deal
March 5 - 2026
Coffee Geography Magazine
China’s largest coffee chain, Luckin Coffee, has successfully acquired the iconic American specialty coffee roaster, Blue Bottle Coffee. The blockbuster deal, orchestrated by the investment firm Centurium Capital, unites the breakneck speed and scale of the Chinese market with the artisanal, "third wave" prestige of a global brand.
According to sources familiar with the transaction, Centurium Capital, the powerhouse investor behind Luckin Coffee’s rise, has agreed to acquire all of Blue Bottle Coffee’s global store operations from the Swiss multinational Nestle. While the exact figure remains undisclosed, reports indicate the transaction is valued at less than $400 million. It is a notable valuation given that Nestle originally paid approximately $500 million in 2017 for a 68% stake in the Oakland-based brand.
However, the deal is a complex one. Under the terms of the agreement, Nestle is not exiting the relationship entirely. The Swiss giant will retain ownership of Blue Bottle’s consumer goods business, which encompasses its retail coffee beans, instant coffee, and ready-to-drink (RTD) products. This allows Nestle to continue leveraging the Blue Bottle name in supermarkets while stepping back from the capital-intensive, physical retail space.
The strategic mastermind behind this acquisition is Centurium Capital and its Chairman, Li Hui. Centurium has been the architect of Luckin’s dramatic trajectory, having invested in the company since its inception and famously guiding its financial restructuring following a 2020 accounting scandal that led to its delisting from NASDAQ. Today, Centurium and Li Hui hold a combined 23.28% stake in Luckin Coffee but control over 53% of the voting rights, giving them firm management control. Li Hui’s appointment as Chairman of Luckin in May 2024 signals a clear intent to drive aggressive, strategic expansion, of which this deal is the centerpiece.
The acquisition brings together two coffee giants with contrasting DNA. Luckin, founded in Beijing in 2017, exploded onto the scene with a tech-driven, delivery-focused model. After a turbulent period, it successfully overhauled its leadership and, in 2023, surpassed Starbucks to become the number one coffee operator in China by store count.
On the other side is Blue Bottle, the darling of the "third wave" coffee movement, known for its meticulous brewing methods, minimalist aesthetics, and slow-growth philosophy. Despite its global cachet, Blue Bottle’s expansion has been measured. As of August 2025, it operates just 140 stores across six countries. Its entry into the Chinese market in 2022 has been cautious, with only 15 outlets in Shanghai, Shenzhen, and Hangzhou—a performance widely considered below expectations given the market's appetite for premium coffee.
This deal, therefore, represents a symbolic and practical convergence. It gives the premium Blue Bottle brand access to Luckin’s unrivaled supply chain, digital infrastructure, and real estate expertise in China, potentially turbocharging its presence in Asia. For Luckin, absorbing a global premium brand elevates its portfolio and provides a blueprint for international prestige. By bringing the soul of the third wave into the engine room of the world’s fastest-growing coffee market, this acquisition is poised to become a defining case study in the industry.