The health crisis has slowed only slightly the deep overhaul of the portfolio of Nestlé, the food giant with 92.6 billion Swiss francs in turnover (86.8 billion euros in turnover ). Barely the hardest part of the past crisis, and after announcing a majority stake in the American food supplement specialist Vital Proteins on Wednesday, the Swiss giant is continuing its transformation.
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In particular, by announcing this Thursday to study the potential sale of its North American bottled water subsidiary. An activity of 3.4 billion Swiss francs in turnover (3.2 billion euros). Half of its worldwide sales of bottled water. This includes popular and regional spring water brands (Poland Spring, Deer Park, Ozarka, Ice Mountain ...), the Arrowhead mountain spring water brand and Nestlé Pure Life. On the other hand, the strategic review does not concern the international brands sold on this market, whose dynamics remain very good.
Anti-plastic pressure
On a global water market that has been decelerating for a year, and heckled by the anti-plastic blows, Nestlé wants to refocus its efforts. Objective: while its global sales of bottled water stagnated last year (+ 0.2%), Nestlé wants to focus on its emblematic international brands (San Pellegrino, Acqua Panna, Perrier), those of premium mineral water, but also “invest in differentiated healthy hydration, such as functional water products.
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"The regional spring water brands, the activity in the field of purified water and the beverage distribution service within the Nestlé Waters North America entity do not fall within this objective" thus justifies Nestlé in a press release. "As a result, the company decided to explore strategic options, including a potential sale . " This review should be finalized " early 2021" .
Future external growth
At this date, the group will also study potential "strategic acquisitions" to resume growth in this struggling market. Like the major beverage manufacturers, the group suffers from the sudden rejection of plastic by consumers, badly anticipated by the major players in the sector. It therefore also intends to focus its investments on achieving its 2025 objectives, namely achieving carbon neutrality (from 2022 for San Pellegrino, Perrier and Acqua Panna). And halve its use of virgin plastic within five years.