Nestle Waters Settles French Mineral Water Investigation Deal

12 Sep, 2024

Nestle Waters Settles French Mineral Water Investigation Deal

Nestle Waters has agreed to a €2m settlement to resolve a French mineral water investigation, marking the largest environmentally related non-prosecution agreement in France. The probe focused on illegal wells and treatment of mineral water, which under French law must remain natural and unfiltered. Nestle Waters, whose brands include San Pellegrino and Vittel, cooperated with authorities and pledged to adhere to new regulatory-compliant procedures.

In addition to the fine, Nestle will spend €1.1m on environmental restoration efforts in several French towns and compensate environmental associations with around €516,800. However, the agreement has faced backlash from consumer watchdogs, with critics accusing Nestle of using financial settlements to escape accountability.

The announcement follows the appointment of Laurent Freixe as the new CEO of Nestle, taking over from Mark Schneider amidst concerns over the company’s future growth prospects due to recent challenges like inflation, the pandemic, and geopolitical tensions. Freixe, previously CEO of Zone Latin America, is expected to lead the company through these difficulties, leveraging his experience and strategic insight to steer Nestle toward sustainable value creation.

Nestle has not yet responded to the criticism regarding the settlement or the ongoing environmental concerns raised by the investigation.