{"id":9248,"date":"2026-02-16T16:59:16","date_gmt":"2026-02-16T16:59:16","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/9248\/"},"modified":"2026-02-16T16:59:16","modified_gmt":"2026-02-16T16:59:16","slug":"is-nestles-partial-water-sale-in-jeopardy-amid-scandals","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/9248\/","title":{"rendered":"Is Nestl\u00e9\u2019s partial water sale in jeopardy amid scandals?"},"content":{"rendered":"

Nestl\u00e9 Waters scandal summary – the key factsNestl\u00e9 CEO dismissed over scandal, overshadowing deeper water controversyFrench press dubs filtration scandal \u2018Watergate\u2019 amid EU law breachesNestl\u00e9 admits treatments, pays \u20ac2m fine to avoid legal actionReputation damage has the potential to impact \u20ac5bn partial sale of water brandsJoint venture still possible despite ongoing investigations and consumer concern<\/p>\n

Nestl\u00e9 has found itself in the spotlight this year \u2013 and not for the right reasons. The biggest shock came with the dismissal of its CEO over a relationship scandal<\/a>, a headline-grabbing event that inadvertently overshadowed another crisis brewing within the Swiss multinational. <\/p>\n

Dubbed \u2018Watergate\u2019 by the French press, the controversy centres on Nestl\u00e9 Waters, the division behind brands like Perrier, Sanpellegrino, Pure Life and Acqua Panna. And with Nestl\u00e9 looking to divest part of its stake in these labels, the timing couldn\u2019t be worse. <\/p>\n

So, does the Nestl\u00e9 Waters scandal threaten to derail its quasi-divestment plans?<\/p>\n

Nestl\u00e9\u2019s \u2018Watergate\u2019 scandal: what we know so far<\/p>\n

The so-called Watergate scandal relates to banned filtration and \u201cnatural mineral water\u201d claims.<\/p>\n

Nestl\u00e9 has been accused of using illegal filtration methods for its mineral water products as a way of masking contamination by bacteria and pesticides. The issue lies in Nestl\u00e9\u2019s \u201cnatural mineral water\u201d claims \u2013 which can\u2019t be made if filtered and treated, according to EU law.<\/p>\n

To carry that \u201cnatural\u201d claim, mineral water can\u2019t be treated in any way that changes its characteristics. <\/p>\n

Nestl\u00e9 admits to using treatments on mineral waters and agreed to pay a \u20ac2m fine to avoid legal action. The company stresses its waters have always been safe to consume.<\/p>\n

\"Ankara,Nestl\u00e9’s Waters includes Sanpellegrino (pictured), Vittel, Pure Life, Acqua Panna and Perrier. (dardanellas\/Image: Getty\/Dardanellas)<\/p>\n

But even if the quality of the water hasn\u2019t been compromised, it\u2019s difficult to argue that Nestl\u00e9\u2019s reputation hasn\u2019t taken a hit \u2013 especially if consumers feel they\u2019ve been misled.<\/p>\n

Which could be problematic if a business is up for sale, or in this case, partial sale. <\/p>\n

And yet, that\u2019s the situation Nestl\u00e9 finds itself in: the company\u2019s in talks to sell part of its water arm, in a deal that could be worth up to \u20ac5bn<\/a>.<\/p>\n

Nestl\u00e9 in hot water – could a deal still be on the table?<\/p>\n

Nestl\u00e9 doesn\u2019t want to sell off its entire waters business. Rather, it\u2019s exploring ways it can spin the business off into a standalone global entity while retaining a stake. A Partnership opportunity, in the form of a joint venture, is a viable option.<\/p>\n

It wouldn\u2019t be the first time a business is sold, or even partly sold, amid a scandal. So how might this kind of crisis impact potential buyers or partners? <\/p>\n

\u201cBuyers will look at the risk emanating from the investigation and take a view as to whether or not it could impact the water brands under investigation, and therefore a potential sale,\u201d explains an M&A legal expert.<\/p>\n

As to whether it throws a potential deal in jeopardy depends on financial and reputational implications. It\u2019s expected Nestl\u00e9 would work to reassure a buyer or partner that any fines relating to the investigation would be covered by Nestl\u00e9 itself \u2013 including the \u20ac2m fine already imposed.<\/p>\n

And then there\u2019s the reputational threat. That would be more difficult to deal with, explains the M&A expert. It could derail the sale unless a potential partner can be reassured otherwise.<\/p>\n

Joint ventures don\u2019t wait for investigations to close<\/p>\n

What the scandal could mean, is that Nestl\u00e9 ends up selling off part of the division at a lower price than it would otherwise. That\u2019s a distinct possibility, agrees the M&A expert, if there\u2019s genuine concern about consumer reactions to the scandal.<\/p>\n

Importantly, it wouldn\u2019t be the first joint venture set up while an investigation was ongoing. There is precedent, including at Nestl\u00e9.<\/p>\n

\"VITTEL,What does the future of Nestl\u00e9 Waters hold amid the ‘Watergate’ scandal? (Wirestock\/Image: Getty\/Wirestock)<\/p>\n

In 2023, Nestl\u00e9 sold part of its European frozen pizza business<\/a> to private equity firm PAI Partners, creating a new joint venture. Brands involved include Wagner, Garden Gourmet, and Buitoni. <\/p>\n

Just one year earlier, Buitoni became the subject of an investigation in France, when two children who ate Buitoni frozen pizzas died from E. coli. No final judgement had been reached at the time the PAI joint venture was agreed, and the investigation remains ongoing.<\/p>\n

So what\u2019s the takeaway? Investigations can drag on, but businesses often can\u2019t afford to wait. While a potential partner for Perrier and Vittel might get cold feet amid the controversy, it doesn\u2019t necessarily mean they\u2019ll walk away. A joint venture for Nestl\u00e9 Waters could still be on the horizon.<\/p>\n","protected":false},"excerpt":{"rendered":"Nestl\u00e9 Waters scandal summary – the key factsNestl\u00e9 CEO dismissed over scandal, overshadowing deeper water controversyFrench press dubs…\n","protected":false},"author":2,"featured_media":9249,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[126],"tags":[5723,7247,7248,5728,309,5741,199,7249,1630],"class_list":{"0":"post-9248","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-nestle","8":"tag-bottle","9":"tag-branding","10":"tag-cold-drink","11":"tag-drink","12":"tag-italy","13":"tag-mineral","14":"tag-nestle","15":"tag-san-pellegrino","16":"tag-water"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/9248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=9248"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/9248\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/9249"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=9248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=9248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=9248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}