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Nestlé has reiterated in a post-results call that it is not planning to sell off its water business but is seeking partners to work with.
Confirming its previously-stated position, the S. Pellegrino and Perrier brands owner’s CEO Laurent Freixe said: “We are committed to the space and committed to the brands.
“There will be no outright sale but we would welcome some sort of partnership…..we look for partnership to realise the potential of the category.”
In November, Nestlé announced it planned to separate its water and “premium beverages” activities into a global stand-alone business from the start of 2025.
Nestlé said then that new management of the drinks assets would “evaluate the strategy” for the business, including “exploring partnership opportunities”.
The company is still embroiled in difficulties surrounding its mineral water site in Vergèze, France.
Last April, it suspended a well at the site, which is used to supply Perrier bottled water, as a result of contamination.
In December, the regional health agency, Agence Régional de Santé Occitanie (ARS), said Nestlé should consider ending production at the Vergèze site due to health risks
Nestlé said at the time the report “does not constitute a definitive recommendation on the operating conditions of our mineral water site in Vergèze”.
Speaking to reporters today (13 February), Freixe said: “We call for a technical debate, a need to address this issue.”
He added: “This is not just a Nestlé thing but an industry issue.”
On another potential business risk, Freixe said on the call that Nestlé is largely “immune” to tariffs because of its model of producing food and beverages at a local level.
US President Donald Trump has threatened tariffs on imports into the US, which has led to companies examining their exposure to taxes on exports and cross-border supply chain models, but Switzerland-based Nestlé suggested this is not a major concern for the business.
The Vittel owner’s CEO said on the full-year 2024 results call that while it is monitoring the tariffs situation on a daily basis, “we are in a unique, privileged position, which gives us significant resilience to significant movements”.
He added: “We produce where we sell. Almost everything we sell we make in that given geography - 90% of what we sell in the US is made in the US and so is immune to tariffs. It is the same in China and Europe.”
Asked about the risk from tariffs to materials used for its products, CFO Anna Manz said it had a “lot of mechanics” at the local level that could be employed if it needs to change its sourcing.