Earnings by the conglomerate Nestlé SA, the world’s largest producer of food and beverages by sales, fell in the first half of 2009 as consumer demand remained anemic and a strong Swiss franc penalized international sales.
Profit fell 2.7% to 5.1 billion Swiss francs ($4.7 billion), while sales dropped 1.5% to 52.3 billion Swiss francs ($48.3 billion). Nestlé’s water division, which packages and sells water under brands like Arrowhead, Calistoga, Deer Park, Poland Spring, and Perrier, posted sales of 4.73 billion Swiss francs ($4.37 billion) as consumers cut back on purchases of bottled water. Sales for the bottled water division slipped 4.7%.
On the news, the U.S. environmental organization Food and Water Watch said:
Around the world, but especially in the United States, consumers are recognizing that bottled water is an unnecessary burden on their wallets, the environment, and the communities from which it is taken and sold at thousands of times its actual value. Nestle in particular, has gained notoriety over the past several years for profiting on a natural resource while dumping the costs of its corporate imperialism onto society in the form of pollution, over-consumption of oil, and unfair labor practices, to name just a few offenses.
The news wasn’t all bad for Nestlé, however. Overall, the company exceeded analyst projections for the period and Nestlé’s pet care division, one of the largest producers of pet food in the world, grew by 9.1% in the first half of 2009 on the strength of brands like Ralston Purina and Friskies.
* 1 billion Swiss francs = $924 million
I wouldn’t bet our future on Nestle Water’s future. Their product is SO out of step. Apparently, “going green” means nothing to them. Maybe they’ll see red (ink) if they continue to bully our citiziens and elected officials?