The global beverage landscape is set for another significant shift as Nestlé has formally launched the sale of a stake in its water division. According to Bloomberg, the Swiss food and beverage group is seeking first-round bids this month for the business, which includes internationally recognised bottled water brands such as Perrier and San Pellegrino.
Industry sources value the water unit at around EUR 5bn. Nestlé is working with Rothschild & Co. on the process. The move follows the group’s earlier decision to separate its water activities from the rest of the organisation, reflecting a reassessment of the long-term role of bottled water within Nestlé’s beverage portfolio.
The water division represents a sizeable global operation with strong brand recognition, premium positioning and a presence across multiple mature and emerging markets. With annual earnings estimated at around EUR 500m, the business remains financially attractive, yet operates in an environment shaped by changing consumer expectations, sustainability debates and increasing regulatory scrutiny around water usage and packaging.
In France, Nestlé’s water activities have faced a series of challenges in recent years that have weighed on the division’s reputation. Authorities investigated the use of non-compliant filtration and treatment methods at several production sites, prompting closer regulatory oversight and public debate over natural mineral water standards. These issues led to temporary production disruptions, product withdrawals and intensified scrutiny of labelling and sourcing practices, highlighting the growing tension between industrial-scale bottled water production and increasingly strict environmental and consumer protection requirements (inside.beer, 29.1.2024, inside.beer, 5.3.2024, inside.beer, 11.7.2025, inside.beer, 19.11.2025).
Nestlé first announced plans to separate the water unit in late 2024 (inside.beer, 16.10.2025). The strategy has reportedly gained momentum following the appointment of Philipp Navratil as chief executive. Under the new leadership, the potential divestment is widely seen as a way to sharpen strategic focus, free up capital and reassess how hydration brands fit alongside Nestlé’s broader beverage activities, including coffee, nutrition and functional drinks.
For the beverage market, any change in ownership could mark the beginning of a new phase for some of the world’s best-known bottled water brands. A future partner or investor may seek to accelerate brand renovation, invest in sustainable packaging solutions or reposition portfolios in response to evolving consumption patterns and environmental pressures.
Discussions on the scope and timing of the transaction remain ongoing. Nestlé has declined to comment publicly on the reports.
