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Perrier Vittel is continuing its growth on a solid foundation and is changing its name to Nestlé Waters

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Apr 12, 2002

With sales of CHF 7.5 billion and organic growth at 11.7% in 2001, Perrier Vittel is continuing its growth on a solid foundation and is changing its name to Nestlé Waters.

  • 24.7% growth in Sales
  • Leading position with 16% of market share
  • Record organic growth of 11.7%
  • 11 acquisitions for a total of CHF 500 million
  • 41% increase of Home & Office Delivery activity
  • Creation of the first Nestlé Water Technology Center at Vittel
  • Maintenance of a high level of industrial investment at 11% of sales in 2001

In 2001, PERRIER VITTEL's sales reached CHF 7.5 billion (close to 5 billion Euros) an increase of almost 25% compared to 2000. PERRIER VITTEL strengthened its position as world leader in the bottled water sector, going from 15.5% to 16% of market share.

The progression of PERRIER VITTEL's operating result was in absolute value + 23% compared to 2000. The current operating income was CHF 618 million. This represents an operational margin (EBITA) of 8.3%.

The rate of organic growth reached a record level of + 11.7% with internal growth of + 9.1% and a price increase by 2.6%.

The majority of regions have contributed to this growth: PERRIER VITTEL registered growth superior to market levels in all regions in the world.

In Europe and in North America, representing 72% of the world market and registering an 8% increase in consumption per capita, PERRIER VITTEL carried out 93% of its sales and showed organic growth of + 11.1%. In these 2 regions it consolidated its leadership with market shares of 16% and more than 31%, respectively.

This growth is the result of the strategy that has been put into practice by PERRIER VITTEL since 1993. This water centered strategy aims to make PERRIER VITTEL a real global player relying on a worldwide network of brands which are present on all distribution circuits.

This strategy prioritizes the consolidation of positions in Europe and in North America through the development of strong brands and through acquisitions offering real synergies.

The further development of PERRIER VITTEL in the rest of the World is founded on the growth of the NESTLÉ PURE LIFE, brand launched in 1999 and which since then has been introduced to twelve countries, targeted acquisitions, favoring value over volume, and the development of Home and Office activity.

For the last two years, this strategy has given rise to important developments.

First of all, it is put into practice through an active policy of renovation and innovation. After the successful launch of NESTLÉ AQUAREL simultaneously in 6 European countries in the middle of 2000, a light water intended for the whole family, PERRIER VITTEL introduced 9 major innovations benefiting the principal brands of the Group. Further to which 50 new bottle shapes were designed.

Alongside this, 11 acquisitions representing, on an annual basis, 950 millions liters and generating more than CHF 500 million in additional sales, were achieved.

North American expertise in Home and Office distribution, a sector which totaled sales of CHF 850 million in North America in 1999, has since been extended through various acquisitions to 13 new countries and today achieves 16% of the Group's sales with CHF 1.2 billions of sales. These positions enable the group to remain the world leader in this activity.

Where research and development are concerned, PERRIER VITTEL has created the first Nestlé Water Technology Center in VITTEL (France), concentrating all of the Group's expertise. It brings together the activities of research and analysis dedicated to the protection of the resource but also to the creation of new products. It will lead to the creation of a team of several dozen men and women.

Finally, in order to support its growth, in 2001 PERRIER VITTEL maintained a high level of investment equivalent to 11% of sales and participated in all cost reduction and productivity programs introduced by Nestlé.

In such a context, marking the dynamism of the bottled water sector, which today represents more than 9% of overall sales of Nestlé S.A., PERRIER VITTEL is changing its name and from now on will be known as NESTLÉ WATERS.

This new name expresses both the recognition of the future contribution that NESTLÉ WATERS will be making to its Shareholders but also constitutes a new stage in the consolidation of its long term leadership, in a world market which is in full expansion.

Mr. Frits van DIJK – the CEO of NESTLÉ WATERS – announced his intention to maintain a high level of growth from now until 2010, improving on the world market growth predictions set at 6 to 8% per year, and to continue increasing profitability.

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