Coffee deals brewing as hipsters drink up

Los Angeles

NESTLE'S high-priced purchase of a majority stake in California-based coffee bar chain Blue Bottle last week, highlights how big companies are seeking exposure to fast-growing premium brands driven by millenials.

Industry experts are predicting more deals will follow in the highly fragmented coffee market, which provides richer profit margins than mainstream packaged food and drink.

Since 2015 there have been nine coffee deals by JAB Holding Co, owned by Europe's billionaire Reimann family. With brands like Douwe Egberts and Tassimo sitting alongside Blue Bottle rival Intelligentsia…