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Your Next Hipster Coffee Might Be Made by Nestle

Such pairings are becoming increasingly common as consumer-product giants like Nestle, Unilever , L’Oreal SA and Diageo Plc seek growth beyond the stagnating megabrands that underpinned their strategies for decades.

Doubters can point to The Body Shop , the self-styled maker of ethical cosmetics that L’Oreal acquired in 2006 and sold this year to Natura Cosmeticos SA of Brazil after it languished under the French company’s ownership.

The challenge for the new owners of niche brands is to strike the right balance between milking the acquisitions for growth and keeping them separate to avoid alienating customers who balk at corporate control.

After Diageo Plc spent as much as much as $1 billion on Casamigos, a tequila whose backers include the actor George Clooney, analysts questioned the valuation of a brand created only four years ago.

Nestle has been adapting the subscription strategy to its bigger brands, as it’s recently added such a service in France and the U.K. for Nespresso to try to keep customers loyal amid a rising number of knockoffs.

READ MORE (Bloomberg)

  • As Nestle Invests In Blue Bottle, The Search For The Next Hot Coffee Brand ...Forbes
  • Nestlé Expands Into Coffee Market, Acquires Blue
  • Nestle to buy a majority stake in Blue Bottle CoffeeTaipei Times
  • Silicon Valley weeps as overpriced hipster coffee maker Blue Bottle sells out ...VentureBeat
  • Nestlé just spent up to $500 million on a major step to fix its reputationBusiness Insider
  • Nestle Buys Controlling Stake In Blue Bottle CoffeeNasdaq
  • Cheddar Morning Business Update 9/15: Nestle to mix chocolate with coffeeNews 12 Westchester
  • Nestle to brew high-end coffee with Blue Bottle buyNasdaq
  • Why Nestle wanted high-end, hipster Blue Bottle CoffeeNikkei Asian Review

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Your Next Hipster Coffee Might Be Made by Nestle


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