Nestlé plans to merge its bottled water business into a joint venture

Swiss giant “Nestlé” is set to transfer its bottled water business to a joint venture. This decision comes two and a half years after a scandal broke out over the use of prohibited treatment methods on its mineral waters, such as “Perrier”.

A statement from “Nestlé” indicates that this business, which also includes other well-known brands such as ‘San Pellegrino’, will be transferred to the company ‘Peranel’, which will be co-owned by the US investment firm ‘Platinum Equity’.

“Peranel” owns more than 30 brands across 120 countries.

“As an independent company focused exclusively on water and premium beverages, ‘Peranel’ will have complete freedom to invest in its brands and pursue growth opportunities,” said the Swiss food industry giant.

“By partnering with ‘Platinum Equity’, “Peranel” will be better placed to implement its strategy by operating with even greater flexibility,” said Nestlé’s Chief Executive Officer Philipp Navratil (Filip Navratil).

Filtration scandal

French mineral water companies found themselves in the spotlight a few years ago after the media revealed that illegal filtration systems were widely used in the industry.

In 2024, an investigation carried out by „Le Monde“ and „Radio France“ revealed that at least a third of the mineral water sold in France had been illegally treated with ultraviolet light, carbon filters or extremely fine micro-mesh filters, typically used to filter out bacteria.

Under EU law, “natural mineral water” must remain unaltered from the underground source to the bottle.

“Nestlé” has stated that, following the latest deal, “Peranel” is valued at €4.9 billion, and that this deal will generate around €3 billion in net proceeds for the company.