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Nestlé confirms new investments in Brazil

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São Paulo

Nestlé has announced today the purchase of Santa Bárbara Mineral Springs and part of its assets located in Santa Bárbara Spa, in the State of São Paulo. The current spring licensor, MINER – Mineração, Hotelaria e Turismo Ltda., will continue to act in the mineral water market.

With this new business, Nestlé Waters, the Water Division of Nestlé Group, reaches a significant production in São Paulo, Brazil’s top market in this segment. With 9.5% market share in the southeast, Nestlé Waters Brazil believes that can increase its market share significantly in the main area of the country that represents approximately 57% of the total market of bottled-water .

The estimated investment in Santa Bárbara Mineral Springs is R$100 millions (CHF52 million) in the next five years, including the value of the purchase, expansion and improvement of the production and packaging lines. Nestlé’s technology will be fully applied to Santa Bárbara to warrant excellent quality standards.

The business will be submitted to the competition defence authorities within the next few days.

This new investment confirms Nestlé’s belief in the country, and reassure, once again, that Brazil is one of its priority markets.

Santa Bárbara Mineral Springs – The Santa Bárbara brand has a strong presence in São Paulo’s countryside, and is distributed in more than 180 cities in plastic cups, small bottles and 20-liter bottles.

Nestlé Waters – Nestlé Waters, the bottled water division of the Nestlé Group, is the world leader in bottled water with 19.2% market share and presence in 130 countries with more than 70 brands. In 2007 it had a turnover of 10.4 billion Swiss francs.

In Brazil, it markets the brands Nestlé Aquarel, Petrópolis, São Lourenço, Perrier, S. Pellegrino and Acqua Panna, the latter three imported.