Blue Bottle Coffee is overhauling its cold drink menu with a new brewing method it claims solves a long-standing industry challenge. CEO Kevin Strovink told Fast Company the chain has “cracked the code on cold espresso.”

The Oakland-based chain, owned by Beijing-based Centurium Capital, is introducing Kyoto-style cold-extracted espresso across eight new iced beverages. This method removes the espresso machine from the process of making cold drinks entirely, a move Strovink says could transform café operations by eliminating a key bottleneck.

Cold coffee sales now rival hot options, with the CEO noting “cold is the new hot in the coffee industry.” The new lineup replaces hot-shot-based iced drinks with a cold-extracted alternative designed to deliver a more balanced, coffee-forward profile.

The shift could pressure competitors like Starbucks and local independents to innovate on cold brew methods. Blue Bottle’s approach leverages a traditional cold-drip technique, separating it from high-pressure espresso extraction used by most cafes.

The chain, which Centurium acquired in 2017 for a reported $700 million, is betting cold innovation will drive store efficiency and customer loyalty. Strovink emphasized the product has been perfected after years of experimentation, though he declined to share specific sales targets or rollout timelines.