Nestlé is planning to put its water brands (such as Vittel, Perrier, San Pellegrino and Acqua Panna) into a separate company. This way, CEO Laurent Freixe hopes to create room for growth.
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The multinational’s new strategic plan aims to deliver 2.7 billion euros in annual savings by 2027. At the same time, Nestlé wants to increase its marketing and advertising investments from 7.7 % of its total sales now to 9 % next year. The company is aims to double its annual organic sales growth from 2 to 4 %, with an underlying operating profit margin of more than 17 %.
On 1 January 2025, Nestlé will create a spin-off for its water business and premium beverage brands. The new independent company will be led by Muriel Linau, who today heads Nestlé Water Europe. The management hopes to explore partnership opportunities to further grow the brands.
Nestlé’s water division recently came under fire after it was revealed that the manufacturer purified its waters for years using microfiltration, activated carbon filters and ultraviolet filters, among other treatments that are not allowed in the production of spring and mineral waters.
