San Pellegrino and Perrier owner Nestlé will spend the coming months carving out its CHF 3.3 billion (€3.5 billion) water business and is open to deals and partnerships, a top executive told Reuters.
Nestlé said 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 1 January 2025, as it looks to drive growth under its new chief executive.
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."
"There's much more work to be done," said Sanjay Bahadur, head of group strategy and business development. "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."
Nestlé Water Business
Nestlé's water business has had interest for decades, including from private equity and strategic buyers, Bahadur said.
"There are many opportunities and we're just trying to call them out (in the next couple of months)," he added. "Depending on the response we get from third parties, we will shape our decisions."
The food giant also downplayed any differences with Robert F. Kennedy Jr., who has been critical of packaged foods, saying it shared the next US health agency chief's desire to improve agricultural practices and nutrition.
Kennedy, picked last week by US president-elect Donald Trump to head the Department of Health and Human Services, said during his own presidential campaign that he wanted to 'Make America Healthy Again' and called out Kellogg's Fruit Loops cereal in an interview two weeks ago.
