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Nestlé hit with shocking accusations of misleading its customers: 'It doesn't stand up to the reality'
Nestlé is in hot water after French regulators and consumer watchdogs accused the brand of misleading consumers by referring to its Perrier products as "natural mineral water."
As detailed by The New York Times, the European Union has strict rules surrounding the designation of water as "natural." Nestlé Waters, Perrier's parent company, allegedly failed to adhere to those regulations because it uses filters and ultraviolet sterilizers to treat its water.
A French Senate investigation revealed that Nestlé hid its treatment of Perrier and other bottled water with the assistance of the government, with members of President Emmanuel Macron's office aware that "that Nestlé had been cheating for years," according to the report.
"This scandal is a sort of textbook case of regulatory capture and state-industry collusion," said Sen. Alexandre Ouizille, who headed the six-month investigation. (Macron's office did not respond to the Times but has previously denied allegations of collusion.)
Nestlé has a market value of over $250 billion. Ouizille told the Times that the brand's dishonest labeling practices brought in at least €3 billion ($3.5 billion) at the expense of consumers who trusted the multinational brand to live up to its claims.
However, Nestlé chief executive Laurent Freixe suggested earlier this year that consumer expectations surrounding "natural" products were unrealistic, with environmental contamination making it increasingly difficult to source safe, clean water without human intervention.
"This romantic idea that you can take pure water from the source, bottle it without any intervention and ensure food safety is just that: romantic," he told Swiss media, per the Times. "It doesn't stand up to the reality of human activity."
Climate scientist Peter Gleick, who co-founded the Pacific Institute — a California-based research firm focused on ensuring water security, which is endangered by the effects of rising global temperatures — agreed with this assessment in a statement to the Times.
"This is part of a longer trend of growing threats to groundwater," Gleick said. However, he also suggested Nestlé's marketing tactics could harm the company's bottom line.
"They want to sell spring water because it carries a premium in the public's eye," he said. "Now if they're just reprocessing it the way they process tap water, it's harder and harder for them to claim that. And as people learn that, they'll lose money."
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Nestlé affirmed the quality of its water and didn't admit to misconduct. Yet it acknowledged "common challenges" in the bottled water industry and suggested that regulations should be more consistent and clear.
"With food safety as a primary goal, the company reiterates that all its natural mineral water products on the market have always been and remain safe to drink, and their unique minerality is as shown on the label," the company said, per the Times.
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