Business

Nestlé sells half of Perrier and San Pellegrino for $3.4 billion

Sale creates a new company with premium beverages called Peranel. ©Image Credit: Unsplash / ibuki Tsubo

Nestlé is downsizing its footprint in the water market by offloading two well-known brands. The company has sold half its ownership in Perrier and San Pellegrino to Platinum Equity, a private equity firm, cutting its water portfolio in half.

New premium beverage business is born

Nestlé makes $3.4 billion in this blockbuster deal, which has created a new premium beverage business called Peranel. Peranel will be a 50:50 joint venture between Nestlé and Platinum Equity.

Peranel includes over 30 brands such as Nestlé Pure Life, Essentia, Source Perrier, and many other local brands. Peranel is headquartered in Paris and is an independent company making its own investment decisions.

“By partnering with Platinum Equity, Peranel will be better positioned to execute its strategy with enhanced agility,” Philipp Navratil, Nestlé CEO, said in a statement.

Nestlé is taking stock of its holdings

This is just the latest move from Nestlé, which seems to be putting any underperforming brands and products under the microscope.

Earlier this year, Nestlé offloaded what was left of its ice cream business to Froneri and sold its stake in Blue Bottle Coffee. The company is even considering selling off its supplement business, which includes things like vitamins and minerals.

On the flip side, there are some areas where Nestlé is chasing growth. Its frozen food selection is rumored to be one of those areas.

Deal expected to close in 2027

The new deal with Platinum Equity is expected to close in the first half of 2027. That will make Peranel worth about $5.6 billion.

Even though Nestlé is cutting its water portfolio in half, it wasn't a massive part of the brand. The water and premium beverage arm of Nestlé is about 4% of its total business.

Reacting to current trends

Yes, changes are coming, but don't worry about losing access to your favorite water beverages. You'll still be able to find Perrier and San Pellegrino on shelves.

Source: Food Dive

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