acquired its second niche American coffee brand in recent weeks, as the packaged food giant delivers on its promise to enter higher-growth coffee segments.
NestlÃ© announced Friday that it has acquired Chameleon Cold-Brew, an Austin, Texas-based artisanal coffee brand that manufactures multi-serving concentrates and single-serve ready-to-drink products, two segments, according to NestlÃ©, accounting for 18% of $ 2.5 billion home coffee category.
âThe Chameleon brand is perfectly positioned to support NestlÃ©’s coffee strategy of offering a variety of offerings in terms of size, taste and price,â said Paul Grimwood, US director of NestlÃ©.
Chameleon also sells kegs, cold brew kits, and coffee beans. Its coffee is sold in American chains such as Whole Foods, Target, Safeway, Albertson’s and Bed, Bath & Beyond..
The deal comes after NestlÃ© announced in September that it was buying a majority stake in specialty coffee roaster and retailer Blue Bottle Coffee.
The coffee industry has seen consolidation in recent years as big players such as NestlÃ© and European investment firm JAB Holding Co. see an opportunity in more premium drinks. Last year, a group of investors led by JAB completed the acquisition of Keurig Green Mountain Inc. for approximately $ 14 billion. In 2015, JAB paid around $ 5 billion to control the coffee business of Mondelez Inc. It also owns Peet’s Coffee & Tea and the Danish coffeehouse chain Baresso Coffee A / S.
The American coffee category climbed 30% in value to $ 13.3 billion last year, from $ 10.2 billion in 2011 according to Euromonitor. NestlÃ© underlined its interest in developing both out-of-home and cold coffee offerings, two areas which it believes are experiencing strong growth.
NestlÃ© CEO Mark Schneider has vowed to mix around 10% of the company’s portfolio, saying he plans to focus investments on coffee and other key areas. In September, he told investors that NestlÃ© saw an opportunity to export brands of cold coffee, already popular in the United States, to emerging markets with warm climates.
âThis whole idea of ââserving something that is ready to drink right away and that is refrigerated is going to be very important to us and we are aggressively pursuing it,â he said. âAs we approach the coffee sector on a global scale, we are not going to be Eurocentric. ”
Blue Bottle, which has 43 cafes in the United States and one in Tokyo, offers a variety of ready-to-drink cold coffee that Schneider said NestlÃ© intends to “aggressively rely on”.
Write to Saabira Chaudhuri at [email protected]
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