Nestlé Prepares to Divest Global Water Business, Including Perrier and S.Pellegrino

Nestlé is preparing to divest its entire global water division—including flagship brands Perrier and S.Pellegrino—as part of a broader strategic refocus.

According to Reuters, the Swiss food and beverage giant has engaged Rothschild bank to manage the sale process, which could value the unit at over €5 billion ($5.6 billion). The move aligns with new CEO Laurent Freixe’s agenda to streamline operations and prioritize high-growth brands such as Kit-Kat, Nescafé, NAN infant formula, and Maggi.

Although Nestlé intends to offload the majority of the water business, sources close to the matter say the company plans to retain a minority stake. This follows the company’s decision in November to carve out the water division as a standalone entity, citing openness to partnerships and deals amid ongoing operational challenges.

Private equity firms—including Platinum Equity, Blackstone, and One Rock Capital Partners—have reportedly held early-stage discussions. PAI Partners and Clayton, Dubilier & Rice are also said to be evaluating the opportunity. However, no transaction is guaranteed at this stage, and talks remain preliminary.

The division has faced setbacks, particularly at Perrier, due to issues at water sources and regulatory disputes with French authorities. While Nestlé maintains that its mineral waters are safe, it acknowledged some site practices may not have met regulatory standards in the past. Nonetheless, the company says current operations in France are fully compliant.

The water segment generated 722 million Swiss francs ($874 million) in Q1, less than 4% of Nestlé’s total revenue.