Analysis Casts Doubts on Strength of Nestlé’s Bottled Water Business, Raises New Questions for Investors

Statement of Food & Water Watch Executive Director Wenonah Hauter

Washington, D.C.—“Nestlé released its 2011 full year results today, wherein the food and beverage behemoth boasted that its bottled water business grew worldwide. Nestlé highlights that its bottled water division Nestlé Waters experienced organic growth of 5.2 percent last year, but the company’s financial statements show that is not the full story.

“In fact, Nestlé Waters’ sales fell by 10 percent from 7.21 million Swiss francs in 2010 to 6.52 million Swiss francs in 2011. By excluding this information from its investor presentation and press release, the company paints an inaccurate picture that suggests its bottled water business is thriving.

“Tight economic times and a growing awareness among consumers of the negative economic, health and environmental effects of bottled water have likely cut into Nestlé Waters’ earnings. It is disturbing that the company could be attempting to obscure the financial realities of its bottled water business, and because of that, and investors should be wary.

“From misleading the public into thinking that bottled water is a healthy, low-cost alternative to tap water, to muddying perceptions of its finances by focusing on rosy growth figures, all this just goes to show that Nestlé cannot be trusted.”

Contact: Kate Fried, Food & Water Watch, (202) 683-2500, kfried(at)fwwatch(dot)org.