Nestle Water Case Study

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Nestlé Company based in Switzerland is the largest food company in the world and makes 1.8 million USD per day just from selling bottled water, non sparkling bottled water being its most profitable commodity. Nestlé has plants of bottled water across the United States and around the world. Nestlé controls one-third of the US market and sells water under 70 different brands across the world. Some popular ones are- Deer Park, Nestlé Pure Life, Ozarka, Ice Mountain and Poland Spring.
Every individual should have access to free potable water; sadly it isn’t true for many. California suffered its worst drought in 1200 plus years in 2013, the mega food corporation was operating plants in the state and harvesting water during the driest year in California’s …show more content…

For Nestlé Corporation during such crisis, water was still a commodity to be sold in the open market. Nestlé drained 80 million gallons of water a year from Sacramento aquifers during the time of crisis of record drought. The mayor of Sacramento city gave the rights to Nestlé for significantly less amount to bottle the water and sell it for outrageous profits while the people of California suffered tragic draught situation. Nestlé Water Company paid 65 cents per 750 gallons of water to the city of Sacramento. This means, for 215,000 gallons of water the company paid $186. This water is sold for $2.1 million USD, resulting in a difference of 10,000% of what it should cost and what people paid. People were upset because of the lack of regulation and control when a giant corporation is taking their water for minting money. There were rallies organized in Sacramento and other parts of California. The mayor of Sacramento should have been more concerned about managing the public water resources properly rather than giving corporations the opportunity to bottle it, in fact the corporations should understand the responsibility to manage water wisely. Nestlé was even given a tax break and wasn’t required to pay the commercial rate for the water which it sold back to people at humungous …show more content…

Nestlé was accused of wasting 30% of water they pump; it’s shocking to know that for one liter of water to reach the shelf takes 80 plus liters of oil and 3 liter of water which is incredibly inefficient. In fact Nestlé intended to increase the amount of production of bottled water calling it the next hot commodity, which is not a good feeling when it comes to sustainability. As a corporation, they have the mentality that if they don’t bottle this water, some other company will. I would like to point out that Starbucks stopped bottling water in California during the time of drought. The issue is many other industries would be using the water for their operations but they actually need it and not creating a problem instead of solving one. Most of the water bottling companies make claims that they are only meeting consumer demand, but rationally thinking who would demand a less sustainable, less tasty and way more expensive than tap water. In 1970s the bottling water industry started, at that time people took it as a joke, but the marketing strategies were designed to scare people about the tap water and pictures of pristine springs and mountains were shown on the labels. Nestlé in one of its ads claimed- bottled water to

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