Nestlé Seeks Partner for Water Brands as New Leadership Takes Stage

Nestlé advances sale of 50% stake in Perrier, San Pellegrino to private equity. Proceeds to fund core businesses as new leadership prepares for AGM and dividend vote.

Nestlé is advancing plans to sell a significant stake in its premium bottled water business, with private equity giants KKR, CD&R, and PAI Partners moving into the next round of bidding. The deal, which could value the entire water segment at around 5.75 billion US dollars, involves a 50% share in iconic brands including San Pellegrino, Perrier, and Acqua Panna. Banks are reportedly preparing debt financing of two to three billion euros to support the transaction.

This strategic pivot comes as the Swiss food giant prepares for a pivotal Annual General Meeting this Thursday, April 16. The event marks a major debut for the new leadership duo of Chairman Pablo Isla and CEO Philipp Navratil. Shareholders will vote on a proposed dividend increase to 3.10 Swiss francs, continuing a 66-year tradition of never reducing the payout in Swiss francs. Key dates for the dividend are an ex-date of April 20, 2026, with payment scheduled for April 22, 2026.

The move to partially exit the water business follows a damaging scandal in 2024, where Nestlé admitted to using prohibited treatment methods for its mineral waters. French fraud authorities estimated the total damage at over three billion euros. The company confirms it has begun a formal partner process, aiming for deconsolidation by 2027. Proceeds are expected to be funneled into more profitable core areas like pet care, coffee, and health science, which together account for roughly 70 percent of group sales.

Concurrently, Nestlé is bolstering its board with high-profile appointments. Former Swiss National Bank President Thomas Jordan is set to join, bringing macroeconomic expertise viewed as valuable amid ongoing tariff disputes with the United States. Procter & Gamble executive Fama Francisco is also nominated to join, which would bring the independent board to 13 members. The company is restructuring its committees to place a stronger focus on integrating science and technology into corporate strategy.

Investor sentiment remains cautious, reflected in a share price that has fallen over six percent since the start of the year. The stock, currently trading around 79.10 Swiss francs, has declined more than ten percent in the last 30 days alone. Management, now in a quiet period ahead of first-quarter results, is targeting organic growth of three to four percent for the full year. Concrete operational progress in the core businesses will be essential to rebuilding market confidence when the quarterly books are opened later this month.