Nestle siphons off bottled water business into joint venture

Swiss giant Nestle said Thursday it will transfer its bottled water brands into a joint venture, two-and-a-half years after a scandal over prohibited treatments used in its natural mineral waters such as Perrier. 

Nestle said in a statement that it would transfer the business -- which covers other iconic brands like San Pellegrino -- into a company called Peranel, which would be jointly owned by US investment firm Platinum Equity.

Peranel will span more than 30 brands in 120 countries.

"As an independent company focused exclusively on water and premium beverages, Peranel will have full flexibility to invest in its brands and pursue growth opportunities," the Swiss food giant said.

"By partnering with Platinum Equity, Peranel will be better positioned to execute its strategy with enhanced agility," said Nestle's chief executive Philipp Navratil.

"It is an important moment for the teams, a moment of change, a moment when we are looking to the future with many opportunities," said Nestle Waters CEO Muriel Lienau, who will head the new venture.

"This partnership brings together a bit of the best of both worlds: on the one hand, continuity with Nestle, which remains a major shareholder, and at the same time fresh momentum from Platinum, which is genuinely committed to investing and speeding up the next phase of growth," she told AFP in an interview.

France's mineral water companies came under the spotlight a few years ago following media revelations about illicit filtration systems widely used in the industry.

In 2024, an investigation by Le Monde and Radio France revealed that at least a third of mineral water sold in France had been illegally treated, either with ultra-violet light, carbon filters or ultra-fine micro-meshes commonly used to screen out bacteria.

Under EU law, "natural mineral water" is supposed to be unaltered between the underground source and the bottle.

Nestle said that the latest transaction values Peranel at 4.9 billion euros, which will generate around three billion euros in cash proceeds for the food giant.

Nestle also published its earnings for the first six months of 2026.

In the period from January to June, the food giant -- which owns more than 2,000 brands, including Nespresso coffee pods and Maggi bouillon cubes -- generated sales of 43.1 billion Swiss francs ($52.9 billion), down 2.5 percent from a year earlier.

Net profit fell 31.4 percent to 3.5 billion francs, due to restructuring costs and asset write-downs on holdings earmarked for disposal, Nestle said.