The non-prosecution agreement is the largest environmentally related one of its kind to be signed in France so far.
Swiss food and beverage giant Nestlé’s water subsidiary, Nestlé Waters, has agreed to a fine of €2m fine to put an end to a French mineral water investigation.
The probe was looking into the treatment of mineral water, which cannot be filtered under French law and is meant to be natural, as well as the use of illegal wells.
Nestlé Waters’ brands include San Pellegrino and Vittel.
The non-prosecution agreement is the largest environmentally related one of its kind to be signed in France so far.
The deal was reached because Nestlé’s actions were found not to cause any public health impact, and the company cooperated with the investigation, meaning legal processes were speed up. Nestlé Waters has since put changed procedures to ensure the practices in question are now regulation compliant.
Nestlé will have three months to pay the €2m. It has pledged to take significant steps to make up for the ecological damage caused by introducing an extensive renaturation plan.
It is expected to spend about €1.1m over the next two years, to repair the environment in a number of French towns where it has operations.
Nestlé is also required to compensate a number of environmental associations, at a total cost of around €516,800.
The agreement has, however, has angered some consumer groups.
Fraud expert Ingrid Kragl from citizen-based food sector watchdog group Foodwatch, was reported by Le Monde as saying: “It’s a scandalous decision which sends a very bad message about a climate of impunity: Nestlé Waters can deceive consumers around the world for years and get away with it by pulling out its cheque book.”
Nestlé has not yet responded to Euronews’ request for commentary.
Nestlé announces new CEO as growth concerns increase
Nestlé has recently announced a new chief executive officer (CEO), Laurent Freixe, who took over from Mark Schneider from 1 September who had been CEO for eight years. Freixe was previously executive vice president and CEO Zone Latin America (LATAM).
The company said the decision for change came after increasing concerns over Nestlé growth and its outlook for the coming future, especially after it was badly affected by the pandemic, inflation and geopolitical issues.
Paul Bulcke, chairman of Nestlé’s board of directors, said at the time: “I have known Laurent for a long time and highly regard him as a talented leader with strategic acumen, extensive in-market experience and expertise, as well as a deep understanding of markets and consumers.
“He has demonstrated his ability to deliver results in challenging market conditions. Laurent’s curiosity fuels his passion for innovation and positive change. Laurent is the perfect fit for Nestlé at this time. Under his leadership, Nestlé will further strengthen its position as a dependable, reliable company through consistent and sustainable value creation.”
