Luckin Tries to Go Upmarket With Potential Blue Bottle Bet

China’s budget coffee juggernaut wants to splash into premium waters. Luckin CoffeeLKNCY

is weighing a bid for Nestlé’sNSRGY

Blue Bottle Coffee as it looks to shed its low-cost image and attract more premium customers. It’s a sharp pivot for a brand that made its name on cheap lattes and relentless expansion.

• Luckin’s Q3 net revenue hit $2.1B, up 50% year over year, with net income around $180M, highlighting the cash engine behind its deal ambitions.
• Blue Bottle, founded in 2002, became a Nestlé brand in 2017 after a roughly $425M deal and now operates across the US and key Asian markets.

Makeover time: The premium push comes alongside a comeback from its 2020 accounting scandal, with Luckin now running more stores in China than StarbucksSBUX

. Talks are still early, and Luckin has already kicked the tires on considering some names like Coca-Cola’sKO

Costa Coffee. Regardless, cheap caffeine may have built Luckin, but fancy vibes will have to carry it from here.