The third wave movement gained momentum in the 1990s, but Blue Bottle Coffee, founded after 2000, is another pioneering third wave coffee shop committed to transparency in its origins, and has now become a global phenomenon.
Blue Bottle Coffee was founded in 2002 in Oakland, California, by freelance clarinetist James Freeman.
Freeman began his business by roasting small batches in a 186-square-foot (approximately 17 square meters) flower shed and delivering the beans to local customers by bicycle.
His first unique selling point was his commitment to selling his coffee within 48 hours of roasting to ensure maximum freshness, a revolutionary concept at the time.
Initially, he sold his coffee at farmers' markets and through a roast-to-order delivery service, but later transitioned to a more traditional cafe style.
The company's name comes from one of Central Europe's first coffee houses, Hof zur Bruen Flasche ("Blue Bottle"), established in Vienna in the late 17th century after the Vienna Wars between the Ottoman Empire and the Habsburgs.
In 2005, Freeman opened a brick-and-mortar store in a garage in San Francisco's Hayes Valley. The store became notorious for long lines, lack of Wi-Fi, and limited product space.
The store gradually built a reputation for its upscale, design-driven offerings.
Around 2010, the company expanded to New York City, growing from a local California roaster to a company with locations on both sides of the East Coast.
The brand became widely known for its handcrafted drip service, single-origin coffee, and strict freshness standards, which influenced the entire specialty coffee industry.
James Freeman was deeply influenced by Japanese coffee shop culture, with its emphasis on precision, hand-drip brewing, and ambiance.
Over time, Blue Bottle has raised significant venture capital, raising over $100 million to support its roasting facilities, cafes, and packaged coffee products.
In 2015, it opened its first cafe in Japan in Kiyosumi, Tokyo, quickly gaining popularity by entering the Japanese coffee shop and specialty coffee culture.
The most significant event in the company's business history occurred in September 2017.
Acquisition details: Food giant Nestlé acquired a majority stake (68%) in Blue Bottle Coffee.
The exact terms were not disclosed, but the acquisition was reportedly valued at approximately $425 million to $500 million, with an enterprise value of approximately $700 million.
This acquisition marked a major shift in the specialty coffee industry, signaling the growth of "third wave" coffee into a scalable global business.
Blue Bottle Coffee has been actively expanding in Asia (Japan, Korea, China, and Hong Kong), enabling it to launch mass-market products such as canned cold brew and "craft instant espresso."
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