Nestlé Open To Partnerships For Water Business, Executive Says

A top executive at Nestlé has told Reuters that the company will spend the coming months carving out its 3.3 billion Swiss franc water business.

The San Pellegrino and Perrier owner added that it is open to deals and partnerships.

Nestlé said on Tuesday it would trim costs by at least $2.8 billion by 2027 and separate its water and premium drinks business into a standalone global unit starting on 1 January 2025, as it looks to drive growth under a new CEO.

Sanjay Bahadur, head of group strategy and business development, told Reuters at the company’s investor day that Nestlé has not yet engaged banks to assess the water business but is “open to both internal and external partnerships.”

Bahadur said, “There’s much more work to be done.

“It requires time, it requires investment, which is why we’re open to look for partnerships, because some of the privileged players might have better distribution networks.”

He added that Nestlé’s water business has had interest for decades, including from private equity and strategic buyers.

Bahadur concluded, “There are many opportunities, and we’re just trying to call them out (in the next couple of months).

“Depending on the response we get from third parties, we will shape our decisions.”

Read More: Nestlé To Cut Costs By $2.8bln And Boost Marketing Under New CEO