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Nestlé Making Billions by Bottling Water in Smartly Selected Locations

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Published on : Sep 25, 2017

Nestlé, the biggest Food and Beverages Company in the World, has been minting billions of dollars by going to economically depressed areas with lax water laws, and is currently dominating the global bottled water market. Nestlé has about 100 factories at different geographical locations in 34 countries, and most of them have been strategically selected.

While the bottled water market remains controversial for the doubts regarding the benefit they offer, Nestlé has managed to dominate by going into economically depressed municipalities, wherein they leverage tax breaks and access to resources from state and local governments in exchange to jobs and infrastructure. Wherever Nestlé has encountered resistance at grass-root level, they have deployed lawyers to deal with it. It must be noted that Nestlé pays very little to nothing for the product it bottles—most times a nominal municipal rate and other times just a nominal extraction fee.

Nestle Currently Dominates the Global Bottled Water Market

Nestlé Waters, a Paris-based subsidiary, currently offers nearly 50 brands, including Poland Spring, Pure Life, Ice Mountain Natural Spring Water, Perrier, and S.Pellegrino. In 2016, the U.S. bottled water market reached a revenue of US$16.0 billion, which was good 10% hike from the previous year, and Nestlé has been generating awareness regarding the benefits of staying hydrated in order to increase its consumer base. Out of the global market, Nestlé accounted for US$7.7 billion worth of water in 2016. Nestlé made its first foray into bottled water market in 1843 when it acquired a business on Switzerland’s Monneresse Canal.