Nestlé sells its Canadian water business
Firm shifting focus to such international brands as Perrier
After years of criticism from environmental groups, Swiss-based consumer products giant Nestlé is selling its Canadian bottled water business. The company announced Thursday it’s selling its Nestlé Pure Life business in Canada to Shelburne-based Ice River Springs. Financial terms of the deal weren’t revealed.
“In late 2019, we began the exploration of a potential sale of our Nestlé Pure Life business in Canada, as we had determined that we are best positioned to focus on our iconic international brands of San Pellegrino, Perrier and Acqua Panna,” Nestlé Canada president Jeff Hamilton said in a news release.
The deal includes bottling plants in Puslinch, Ont., Hope, B.C., and a well in Erin, Ont.
It also includes a controversial well in Elora, Ont., which isn’t yet in use. Nestlé Pure Life water will continue to be sold in Canada, though it will be produced by Ice River.
“This is a victory for the people of
Ontario. This is a response by Nestlé to public pressure,” said Robert Case, chair of Wellington Water Watchers, an advocacy group that had heavily criticized Nestlé’s purchase of the Middlebrook well in Elora.
In an email, Nestlé Canada denied that the move was a result of public pressure.
“The decision was a business decision
NESTLÉ continued on B6
based on growth ambitions and prioritization on where we are best positioned for success,” the company said in the email.
While Nestlé’s release noted Ice River is Canadian and family owned, Case said it’s still one of the largest private-label water bottlers in North America.
“This isn’t some mom and pop operation.
“This is a large company,” Case said, adding that Wellington Water Watchers view the entire water bottling industry as inherently bad for the environment.
“I’d really like to see this industry stopped altogether. There’s no reason for it, especially in Ontario,” Case added.
Ice River co-owner Sandy Gott declined to comment but, in the release, said the company produces “sustainable” bottled water.
“We will continue our commitment to sustainable bottled water, the circular economy and to hydrating Canadians,” Gott said.
Ice River also operates a recycling division — BMP Recycling — that takes municipal blue box waste and turns it into foodgrade plastic, including 100 per cent recycled bottles.
On June 11, Nestlé said it was reshaping its water business.
“The company will sharpen its focus on its iconic international brands, its leading premium mineral water brands, and invest in differentiated healthy hydration, such as functional water products,” the company said at the time.
In November, the Ontario government extended a moratorium on issuing new water bottling licences in the province. The moratorium, first introduced by the Liberal government of Kathleen Wynne in 2017, is set to expire on Oct. 1.
The moratorium came after Nestlé purchased the Middlebrook well, which the Township of Centre Wellington had intended to use for its municipal water supply. Mayor Kelly Linton said he was surprised by the announcement. “This really came out of left field.”
Linton added that he was told by a Nestlé representative that the Middlebrook well is part of the package being taken over by Ice River.
“From my perspective, nothing has really changed. We still as a municipality need to ensure our long-term water supply. I’ve never been anti-Nestlé. It’s strictly concern about making sure we have what we need,” Linton said.
Centre Wellington has a population of 30,000, but that’s projected to reach 50,000 by 2041, Linton added.
Nestlé and other water bottling companies pay Ontario $503.71 per one million litres, about five cents for 100 litres of water.
“Nothing has really changed. We still as a municipality need to ensure our long-term water supply. I’ve never been anti-Nestlé.”
KELLY LINTON MAYOR OF CENTRE WELLINGTON