Nestlé Waters divestment – summary
- Nestlé is making progress towards disposing of its Waters division
- Language shift to “disposals” suggests full exit from Waters sector
- Selling Waters aligns with Four Pillars focus
- Repeated 2024 scandals, increased regulatory scrutiny, and reputational risk may have contributed towards decision
- Private equity firms including Blackstone and KKR reportedly interested
The fate of Nestlé’s Waters division has been the subject of speculation for months now.
The multinational first announced its intention to offload the lucrative branch of its business back in November 2024, when then-CEO Laurent Freixe revealed it was to be spun-off into a standalone business. This move, he said, included exploring “partnership opportunities”.
However, little more was said on the matter, and things quickly went quiet, leaving some to believe the plans had been put on hold, or even shelved entirely.
Fast forward 18 months and things are finally moving along, with now-CEO Philipp Navratil saying the Swiss multinational is “making progress” on the matter.
Disposal not separation
An interesting development is the fact Navratil used the word “disposals”, rather than separation, in relation to its Waters and VMS (Vitamins, Minerals, and Supplements) divisions. This implies the company is planning to get out of the sector entirely.
Although unconfirmed, selling Waters would align with Nestlé’s new streamlined structure, focusing on Four Pillars – Food & Snacks, Coffee, Nutrition, and Petcare.
Though it would mark the exit of major brands including Perrier, Vittel and S.Pellegrino after several decades under the group’s ownership. It would also mark the exit of a unit worth and estimated €5bn.
That said, the succession of scandals surrounding Nestlé Waters could outweigh any concerns over future revenue loss.
Nestlé Waters scandals
Nestlé’s Waters division has been dogged by scandal in recent years.
In March 2024, the multinational came under criticism for processing methods used in the production of two of its biggest water brands – Perrier and Vittel. The company was accused of selling bottled tap water as mineral water and using illegal treatment methods to do so.
Then in April that same year, France’s food agency raised concerns Nestlé brands – Perrier, Contrex, Vittel, and Hépar – were contaminated with bacteria, pesticides, and PFAS. The case remains ongoing.
Divestment trend
Nestlé’s streamlining of operations follows a very clear trend across Big Food.
The Kraft Heinz Company has announced plans to split into two separate entities, although those plans were swiftly placed on hold, following a less-than-positive reaction from shareholders.
British multinational Unilever is spinning-off almost its entire food business – another move met with resistance from the markets.
And, just last week, Nestlé confirmed it has “reached an agreement” to sell Blue Bottle Coffee to China-based Centurium Capital.
Nestlé Waters future
Whether Nestlé goes for a full-scale sell-off or a more complex carve‑out, remains to be seen, but its strategy under Navratil is very bold and very clear – offload anything that doesn’t form part of the Four Pillars.
If the company does decide on a complete exit, it would mark the end of a 150-year relationship, which began back in 1843 when Henri Nestlé established his first lemonade and water bottling factory.
It would also indicate how reputational risk is shaping strategic decisions across Big Food. Regulatory scrutiny, environmental criticism and consumer mistrust are no longer peripheral issues, they have real financial consequences and companies may increasingly move to distance themselves from them.
For the wider industry, Nestlé’s actions reinforce a growing sense that scale is not necessarily the secret to success.
Whatever Nestlé decides, the industry will be watching closely – not just as a test of the group’s strategy, but as an indication of what investors and competitors may soon expect from large-scale food businesses.
In the meantime, we understand that multiple private equity firms, including Blackstone, Bain, CD&R, KKR, and PAI are interested in the Waters business.
Nestlé is yet to respond to request for comment.
