Nestlé Waters set for major changes after more flat sales
Nestlé Waters' struggling sales numbers are leading to a new look for the company, one which Nestlé hopes will lead to greater flexibility to meet consumer demands.
One day after Nestlé reported real organic growth of 3.7 percent and total reported sales increase of 2.9 percent, its water division will be going through a substantial reorganization. The creation of a Strategic Business Unit as well as the integration of the varied water products under the umbrella of Nestlé’s three geographical regions is aimed to better reach consumers in individual markets.
With sales relatively flat across the Nestlé Waters brand, the restructuring is aimed to provide a jolt to an industry that is struggling amid a slowing market. According to The Wall Street Journal, nearly 60 percent of “Nestlé’s bottled-water sales come from local or regional brands—like Poland Spring in the U.S. Waters makes up about 8% of overall sales and under 5% of Nestlé’s profits.”
Prominent members of Nestlé Waters include Poland Spring, Perrier, Pellegrino and Deer Park.
The news comes at a time of transition for Nestlé Waters. On Thursday, it was announced that Maurizio Patarnello, the deputy executive vice president and head of Nestlé Waters, will leave the executive board. In late September, Vivek Bedi was named as executive vice president and chief financial officer of Nestlé Waters North America.
The recent changes aren’t just limited to Nestlé Waters. Earlier this month, the company announced the sale of Nestlé Skin Health for more than $10 billion francs.
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