Nestlé Waters, the water subsidiary of Swiss food and beverage giant Nestlé, has agreed to pay a EUR 2 million fine to resolve an investigation in France regarding its treatment of mineral water and the use of illegal wells. The investigation scrutinized whether Nestlé’s practices complied with French law, which mandates that mineral water remains natural and unfiltered.
The settlement, the largest environmental non-prosecution agreement ever signed in France, was reached after it was determined that Nestlé’s actions did not pose a public health risk. The company cooperated fully with authorities (inside.beer, 29.1.2024), leading to a quicker resolution. Nestlé Waters has since modified its practices to meet regulatory standards and ensure compliance going forward.
Under the terms of the agreement, Nestlé has three months to pay the EUR 2 million fine. Additionally, the company has committed to a EUR 1.1 million ecological restoration plan over the next two years to repair environmental damage in several French towns where it operates. Nestlé will also compensate various environmental organizations with a total payment of approximately EUR 516,800.
Despite the settlement, the decision has sparked criticism from consumer advocacy groups. Ingrid Kragl, a fraud expert from the food watchdog group Foodwatch, called the outcome "scandalous" and accused Nestlé of buying its way out of the situation. Kragl told Le Monde, “This sends a dangerous message of impunity: Nestlé Waters can deceive consumers for years and escape consequences by writing a check.”
Nestlé appointed Laurent Freixe as its new Chief Executive Officer (CEO) two and a half weeks ago, following the unexpected departure of Mark Schneider, who had held the position for eight years (inside.beer, 23.8.2024).
