Nestlé has announced plans to spin off its water and premium beverages division into a standalone global business, effective from 1 January 2025.

The Swiss food giant unveiled its action plan during the company’s Capital Markets Day on Tuesday, 19 November, 'to drive category growth and improve market share performance'. The strategy includes enhancing operational efficiency, increasing advertising and marketing investment by 9% and achieving additional cost savings of at least CHF 2.5 billion (approx. $2.83 billion) by 2027.

As part of the plan, Nestlé plans will separate its bottled water and premium beverage brands, including labels such as Perrier and San Pellegrino into an independent business unit.

The move is part of a broader strategy to enhance operational performance and unlock the full potential of its brands.

The newly formed business will be led by Muriel Lienau, head of Nestlé Waters Europe. Nestlé stated that the new management team will review the strategic direction of the standalone water and premium beverages business. This evaluation will involve exploring partnership opportunities to maximise the potential of Nestlé's brands and growth platforms.

Nestlé's action plan is designed to drive 'superior, sustainable and profitable' growth. Over the medium term, the company anticipates achieving organic sales growth exceeding 4% under normal operating conditions, alongside an underlying operating profit margin of over 17%.

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