Nestlé boosts its coffee portfolio with Chameleon Cold-Brew buy
Nestlé USA has acquired its second niche coffee brand in recent weeks, as the consumer goods giant aims to bolster its position in the fast-growing coffee segment of the market.
Nestlé announced on Friday that it has acquired Chameleon Cold-Brew, a craft coffee brand based in Austin, Texas for an undisclosed sum.
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Founded in 2010, the brand is the number one organic cold brew brands in the US and one of the top three refrigerated cold brew brands in the US
Chameleon Cold-Brew makes multi-serve concentrates and single-serve ready-to-drink products, two markets segments that Nestlé says accounts for 18% of the US$2.5bn in-home coffee category.
The move comes as Nestlé aims to diversify its portfolio to target the organic and coffee segments and of the beverage industry, as these are seen as a future high-growth market.
In September, the Swiss company also took a majority stake in the California-based Blue Bottle group, that values the cafe and roastery chain at more than US$700mn.
Nestlé is also expanding its Nespresso capsule business. With 53 new Nespresso shops planned to open by the end of the year.
“Chameleon is a valuable addition to our coffee portfolio and brings tremendous brand strength,” said Nestlé USA chairman and CEO Paul Grimwood.
“We are committed to helping Chameleon grow into new markets and channels, while retaining its values and, of course, delicious, premium crafted coffee.”
In 2016, the company sold more than 4 million bottles of cold-brew coffee – and with two months remaining in 2017 Chameleon says it has already exceeded that number this year.
Chris Campbell, co-founder and CEO of Chameleon Cold-Brew added: “Partnering with a world-class company like Nestlé will give us the opportunity to do so on a bigger platform.
“Our shared values around product integrity and commitment to sustainability made Nestlé the best choice to enable Chameleon Cold-Brew to accomplish our goals for the future.”