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NESTLÉ WATERS IN QUESTIONS

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NESTLÉ WATERSIN QUESTIONS

N E S T L É WAT E R S I N Q U E S T I O N S — 0 30 2 — N E S T L É WAT E R S I N Q U E S T I O N S

NESTLÉ WATERSIN QUESTIONS.NESTLÉ WATERSIN QUESTIONS

The diversity of our business leads to interaction with several key societal and environmental

challenges such as the human right to water, water access, water privatisation, water pricing,

water scarcity, water quality etc. And like many other large companies, we also face various issues

such as climate change, transportation, fossil fuel depletion, packaging waste…

We also benefit from many opportunities and would like to enhance our social role in promoting

healthy hydration and a heathier lifestyle…

At Nestlé Waters, we believe that water is everyone’s business at every single level of our global

organisation and would like to respond to some of the most frequently asked questions about water

and the bottled water business.

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Our brands of water predate the creation of Nestlé Waters. Several of our brands have been bottled for over 100 years: Perrier (France)

since 1863 (and the source was already known by the Romans), S.Pellegrino (Italy) since 1899 (discovered in the 12th century), Acqua Panna (Italy) since 1860,

Poland Spring (USA) since 1845 and Sao Laurenço in Brazil since 1890…

DID YOU KN OW?

I N T R O D U C T I O N

OUR PROFILE

Nestlé Waters “The Healthy Hydration Company”, created in 1992, is the water division of the Nestlé Group and the number one bottled water company worldwide. We operate in 34 production countries with 95 production facilities and more than 33,700 employees.

We are present in most distribution channels and consequently offer a large portfolio of 49 unique brands (from natural mineral waters to purified drinking waters) including Nestlé Pure Life, our No 1 bottled water brand, Perrier and S.Pellegrino, our international water brands. But also, various well-known national or regional brands such as Acqua Panna, Vittel, Poland Spring, Buxton, Sao Laurenço, La Vie or Erikli.

WHO IS NESTLÉ WATERS?

Nestlé Waters, the water division of the Nestlé Group,

is the bottled-water leader, worldwide.

MORE THAN

33,700 EMPLOYEES

PRODUCING COUNTRIES

34

0 6 — N E S T L É WAT E R S I N Q U E S T I O N S N E S T L É WAT E R S I N Q U E S T I O N S — 0 7

2016 KEY FIGURES

Plain water makes up over 90.9% of our brand portfolio.

Sales breakdownby geographic zone (in %)

NORTH AMERICA

55.3%

EUROPE

24.8%

ASIA OCEANIA AFRICA

15.6%LATIN AMERICA

4.3%

Sales breakdownby distribution channel (in %)

RETAIL84.5% HOD (*)

(Home & Office Delivery)

15.5%(*) Large bottled water content ›10L

Sales breakdownby brand (in %)

International Brands Nestlé Brands Local Brands Other Beverages and other revenues

Environmental indicators (in%)

WATER

-20% Nestlé Waters reduced by 17% its total (renewable and non-renewable) on-site energy consumption rate per litre produced between 2011 and 2016.

With 0.51 litres of additional water used to produce one litre in 2016, Nestlé Waters has reduced its water use ratio by 20%.

We reduced packaging weight per litre produced by 9% between 2011 and 2016.

ENERGY

-17% PACKAGING

-9%

OPERATING PROFIT

CHF 946 million (Euro 867 million)

SALES

CHF 7 926 million (Euro 7 269 million) (8.9% of Nestlé Group sales)

N°1

18.4%

25.7% 50.4%

ORGANIC GROWTH

4.5%

MARKET SHARE

11%49 bottled water brands

BRANDSPRODUCTION FACILITIES

95

5.5%5.5%

0 8 — N E S T L É WAT E R S I N Q U E S T I O N S N E S T L É WAT E R S I N Q U E S T I O N S — 0 9

Q U E S T I O N 0 1

Bottling and sales first began in Europe in the mid-16th century, with natural mineral water sourced from Belgium, France, Italy and Germany.

Natural mineral waters were first sold in pharmacies in the 17th century as medicinal waters!

DID YOU KN OW?

Bottled water provides a service to consumers who choose to buy a convenient and portable product. Consumers choose our brands for their taste and quality. Every product requires stringent

quality controls and mineral waters provide recognised health benefits.

The price of bottled water, as with all packaged beverages, reflects the investment necessary to ensure its convenience, safety and quality.

Nestlé Waters often goes further for its brand Nestlé Pure Life process with monitoring, and compliance to produce water of high quality in several different locations, never too far from the consumer, in order to keep transportation distances to a minimum.

WHY SHOULD WE HAVE TO PAY FOR

BOTTLED WATER?

As with any other packaged beverage, the price of bottled water reflects

the investment necessary to ensure its convenience, taste, safety and quality

including bottling, packaging, quality control, marketing, transport and distribution costs.

In addition, for bottled water we have to finance payment for permits,

licences, taxes and dedicated investment to ensure the sustainability of our source.

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100 Researchers and experts based in Vittel (France)

Our international Product Technology Centre (PTC) employs a team of almost 100 researchers and experts on R&D and in our highly specialised laboratory in Vittel (France) to gather all knowledge necessary to sustainably develop Nestlé Waters’ business activities.

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Q U E S T I O N 0 2

DID YOU KN OW?

Nestlé Pure Life is an innovative multi-source concept. The idea is to produce high-quality water in several different locations,

never too far from the consumer, in order to keep transportation distances to a minimum. The result is a more affordable price for consumers

and a smaller impact on the environment.

The worldwide average consumption of litres of bottled water per capita is 50L per annum. The greatest consumers of bottled water are North America (125 litres), Western Europe (123 litres), Latin America (89 litres), Eastern Europe (50 litres)

while Asia/Oceania (36 litres) and Africa/Middle East only consume 31 litres (Sources: Zenith International, 2015).

WATER IS WATER,ISN’T IT?

There are many types of water: bottled water, tap water and drinking water…

Bottled water has no chemical treatment and offers a pleasant and unique taste, a quality guarantee and a convenient

and portable way to hydrate properly.

Bottled water responds to hydration needs with three different types available:

q Natural mineral water: this water can be still or sparkling

but always has an underground origin, is bottled close to the source, has a stable mineral composition, full traceability and is not permitted to have any chemical or antimicrobial treatment.

q Spring water: this water is usually still, with an underground origin and is often bottled close to the source. It has a variable mineral composition, full traceability without any chemical treatment and limited antimicrobial treatment.

q Drinking water: this water can originate from different sources and is sometimes bottled

at the source. It has a variable mineral composition and antimicrobial treatments are allowed to ensure its safety and quality.

Bottled water offers constant taste, a quality guarantee and a convenient and portable way to hydrate properly.

Bottled water is not only regulated by bottled water-specific standards of quality control but also by packaging and food contact standards (including hygiene, additives, labelling, marketing and traceability). Most importantly, for most people, bottled water is a convenient and portable way to access quality drinking water at any moment during the day and while on the move: at work or at school, when commuting or exercising.

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Q U E S T I O N 0 3

In adults, the body is about 60% water (Jequier, 2010). Mild dehydration may occur when only one per cent of body weight is lost due to insufficient water intake and/

or increased water loss and may be accompanied by common symptoms: increased heart rate, decreased blood volume, headaches, dry or sticky mouth, increased

thirst, sleepiness or tirednes (Mayo Clinic, 2015). Research shows that losses of two per cent or more can reduce cognitive (mental) performance

(Grandjean AC & Grandjean NR, 2007).

DID YOU KN OW?

WHY DO WE REALLY NEED TO DRINK

1.5L/8 GLASSES(*) A DAY?

Water is essential and vital to human life and involved in practically all functions

of the human body. Water inputs should match water outputs. Plain water

should be THE choice for daily hydration as part of a healthy lifestyle.

Foods and beverages both contribute to total water intake. Nevertheless, the water that we get from food is not sufficient to maintain the water balance (Jequier, 2010). The European Food Safety

Authority (EFSA) states that intake of water is predominantly through consumption of drinking water and beverages (80%) plus water contained in food (20%) - EFSA, 2010.

On average, a healthy sedentary adult living in a temperate climate needs to drink 1.5L a day (Jequier, 2010)(**).

Recommendations such as drink 8 glasses (*) / times of water a day, aim at providing easy guidance for consumers to follow in order to reach the daily recommended intake of water.

Juices or sugar-sweetened beverages can be drunk occasionally but not all day long for daily hydration purposes as they add calories, which may impact health when over consumed.Water, which contains zero calories and zero sugar, is a healthy alternative for sugar-sweetened beverages. Water – whether bottled or from the tap – should be the top choice when it comes to daily hydration.

NEW BORN

75%ADULT

60%SENIOR

50%

(*) Glass of 200ml for a healthy sedentary adult living in a temperate climate.

(*) Glass of 200ml for a healthy sedentary adult living in a temperate climate (**) For an adult basis (Jequier, 2010 - Department of Physiology, University of Lausanne, Pully, Switzerland)

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Q U E S T I O N 0 4

What you drink is as important to your health as what you eat and how often you exercise.

Sugar-sweetened beverages are high in sugar and in some countries are consumed frequently, especially by children and adolescents (children aged 4-10 get around 17%

of their daily sugar from soft drinks and fruit juice in the UK) (Public Health England, 2015). If you consume one or two soft sugary beverages per day you increase your risk of developing diabetes by 25%. Replacing sugar-sweetened beverages by water is of

public health interest as water contains zero calories and zero sugar (Malik VS, Popkin BM, Bray GA, Despres JP, Willett WC, Hu FB, 2010).

DID YOU KN OW?

WHY IS WATER CONSUMPTION

CRITICAL FOR PUBLIC HEALTH?

In a world facing a growing obesity concern, encouraging water consumption from any

type (mineral, spring, drinking or tap) is at the heart of public health challenges.

Obesity and overweight rates are steadily increasing and may impair the health of millions of people. In particular, obesity is a major risk factor for non-

communicable diseases such as cardio vascular diseases and diabetes. Globally, 1 in 11 adults (International Diabetes Federation - 2015) suffer from diabetes. In 2014, it was estimated that from 1% to 3% (World Obesity Federation) of total health expenditure is due to obesity in most countries, and it will rise rapidly in the coming years as obesity-related diseases set in. There is scientific evidence that excessive consumption of added sugar, especially from sugar-sweetened beverages, is one of the factors contributing to overweight and obesity.Encouraging healthy drinking habits by switching from sugar-sweetened beverages to healthier beverages and making water the top choice when it comes to daily hydration contributes to decreasing calorie intake. However, healthy hydration sometimes is not recognised as crucial

a solution as balanced diet and regular physical activity are to fighting against obesity.

q Inspiring people to choose water to lead healthier life:

At Nestlé Waters, our role is to inform consumers and help them to adopt healthy drinking habits. With respect to these primary public health challenges, we firmly believe our products and participation in collective actions in favour of promoting healthy hydration as part of a healthy lifestyle, is one of our key priorities.Nestlé Waters has pioneered campaigns with public and private partners to promote water in several countries such as Michelle Obama’s « Drink Up initiative, Hydration movement » in the US, « Time to move against obesity » in Turkey, « I choose water » in Poland and the « National Family Hydration Programme » in Mexico. We are already helping to educate children through Project WET (NGO Water Education for Teachers) and with Nestlé through « United for Healthier Kids » programme (U4HK) for example in UAE.

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Globally, around 39%of adults (aged 18) and over 2 billion were overweight by 2014 – Source WHO.

Obesity/overweight increases the risk of non-communicable increases, i.e. cardio vascular diseases, cancer, respiratory diseases and diabetes.

These NCDs represent a big cost at individual and society level (source WHO, 2015).

According to the World Health Organisation, worldwide obesity has more than doubled since 1980.

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Q U E S T I O N 0 5

DOES BOTTLED WATER AFFECT WATER

AVAILABILITY?

We are entirely dependent upon a secured supply of water in both quantity and quality.

Through transparency, engagement and improvement, we believe in the guiding

principles of water stewardship as critical drivers to efficiently manage water resources

for the long-term.

In the context of the global water challenge, Nestlé Waters acts responsibly by protecting its

sources and reducing its water consumption all along its value chain.

Water is an essential renewable resource that must be preserved for future generations. For us, responsible water management

does not stop at being best in class within the walls of our factories, but extends to collective actions with other water stakeholders to implement plans which address local water challenges.

Today, all our factories are embarked on a water stewardship journey which includes collective actions like our flagship project in Agrivair. Agrivair is our «zero pesticide» project implementing measures for environmental protection. It is a subsidiary created in 1992 by Nestlé Waters France located around Vittel and Contrexéville (in the Vosges region of France). Its purpose is to develop a multidisciplinary scientific approach to protect the quality of sources with a cooperative approach based on reconciling local economic development and the sustainability of water resources with farmers, businesses, local authorities and residents as well as horticulturalists and landscape architects.

This programme helps dramatically decrease the use of pesticides and other chemical throughout a 10,000 hectare site. Sustainability of water resources can only be achieved through long-term collaborative solutions that must be met by all stakeholders: policymakers, industry, agriculture and consumers. Good water stewards understand the water situation of the local catchment identify local water challenges (quantity of water, quality of water, access to safe drinking water…) and then engage in meaningful individual and collective actions to address these challenges.

Even as the global bottled water leader, Nestlé Waters represents 0.001% of all freshwater withdrawn in the world, compared to 70% for agriculture, 20% for industry and 10% for domestic use.

Nestlé Waters has a wealth of water knowledge and expertise, and can act as a catalyst to promote water stewardship solutions where we operate.

Nestlé Waters has in-house water experts such as natural resource managers and teams including hydrogeologists.

A hydrogeologist is as much an historian as a water diviner, researcher or chemist. This profession has a very practical aspect - finding underground water, setting up

catchment mechanisms and mastering the operational technique - but it is also very closely connected to protecting the environment.

DID YOU KN OW?

Of freshwater is used in agriculture

70% 4.650LtO prOduce 300g Of meat

Of freshwater is used in industry

20% 4.100LtO prOduce 1 cOttOn t-shirt

10%Of freshwater is fOr dOmestic use

30LfOr a 10 minute shOwer

N E S T L É WAT E R S I N Q U E S T I O N S — 2 32 2 — N E S T L É WAT E R S I N Q U E S T I O N S

In November 2014, Nestlé Pakistan signed a Memorandum of Understanding (MoU) with WWF-Pakistan for sustainable water use and water stewardship.

As part of its commitment to sustainable use of water, Nestlé Pakistan, in collaboration with WWF-Pakistan, will launch projects not just to improve

the water usage within Nestlé operations and supply chain but will also implement Alliance of Water Stewardship standards.

DID YOU KN OW?

Governments are expected to take the lead in establishing water policies within which we and other water users can operate. We are open to assist in this process, and committed to developing our business in a way that facilitates effective water stewardship in the geographies where we source and we are committed to focusing on measures that are cost effective and relevant within a watershed. We operate under a water use licence, or similar agreement, provided and approved by the relevant, competent public authority. We strictly operate under the conditions defined by these licences, laws and regulations that are regularly updated, applying them to the sites where we own the land and also define pricing. We fully support balanced water resource protection regulations as well as adequate pricing for all water users to ensure the sustainable governance of watersheds in the long term.

What about water resource management in California?

The drought period in California has focused attention on the use of water by all sectors and led to the imposition of a 25% reduction on the state’s water supply agencies to be implemented over the coming year.

In California, Nestlé Waters is a proportionally small water user compared to agriculture and other light industrial water consumers.

q �Of the 108 bottled water plants in the state, only five are operated by Nestlé Waters.

q �Of the nearly 50 billion m3 of water used each year in California, Nestlé Waters plants produce around 4 million m3 which represents 0.008% of total water used in the state.

Because Nestlé Waters shares people’s concerns about the effect this drought is having on families, farmers, consumers, businesses and the environment in California, we are investing in technology and innovation across our water bottling and food manufacturing plants in California to reduce water consumption and apply conservation measures. For instance, as part of our water stewardship plan, we worked to transform the Nestlé milk factory in Modesto into a “zero water” factory in 2016.

These combined efforts will potentially reduce our water withdrawals to be aligned with commitments made by the state of California.

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Access to safe drinking water and sanitation are human rights since 2010, but… • Close to 700 million people in the world still do not have access

to safe drinking water • Over 2 billion people do not have access to proper sanitation

DID YOU KN OW?

Q U E S T I O N 0 6

WHAT ABOUT THE HUMAN RIGHT

TO WATER?

Nestlé Waters fundamentally believes that access to safe drinking water is a basic

human right.

It is also a prerequisite to long-lasting prosperity in many of our local communities

near its factories.

The human right to water was officially recognised by the United Nations General Assembly in 2010. The World Health Organization recommends that everyone should have access to 50-100

litres of clean, safe water for their daily hydration and hygiene needs. But access to safe drinking water and sanitation is still a real issue.

We consider that we have to play a role to in implementing the right to water and we act accordingly.

All Nestlé Waters facilities provide access to clean water and sanitation to their employees, and, in some cases, to local communities located close to its factories.

We always ensure that our operations do not have any negative impact on resources or the environment but we also endeavour to achieve a positive impact committed to support our long-term goal of Creating Share Value.

In 2012, Nestlé was one of the first companies to sign up to the World Business Council for Sustainable Development’ (WCSD) WASH pledge, which commits us to providing access to safe water and sanitation at all of our direct operations within a three year period.

q Water accessPartnership on clean drinking water and sanitation with the International Federation of the Red Cross (IFRC) and Red Crescent Societies. Nestlé has a global partnership since 2006. Renewed in 2014, it has focused on water sanitation for 65,000 people in the Ivory Coast over the last three years and will now extend to Ghana.

q Nestlé Pakistan has built eight clean drinking water facilities to provide clean drinking water serving 50,000 members of the community every day (the eighth one was inaugurated in Nov. 2015).

q In Nigeria, following the opening of a new factory close to Abaji in 2016, we built a community water facility offering to more than 1,000 people in Maderegi village access to clean and safe drinking water.

q�Emergency situations We also provide bottled water to relief operations after natural disasters, when the public water supply is temporarily unavailable.

q�Nestlé Waters donated water to many situations during the last years to survivors of disasters in Argentina, Chile and Mexico in 2014. (Homeless in Canada, Samu social France, floating in the USA …)

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Q U E S T I O N 0 7

In 2013, Nestlé Waters launched a Community Relations Process (CRP), which has now been implemented at around all sites around the world.

Creating Shared Value is at the heart of this process, with a focus on driving the socio-economic well-being of the communities where we operate, as well as

our long-term social licence to operate in those communities.

The CRP allows us to better engage with our local stakeholder and identify their concerns and expectations so that to leverage along with them the most

relevant opportunities to the benefit of the communities.

DID YOU KN OW?

IS A BOTTLED WATER BUSINESS BENEFICIAL

FOR LOCAL COMMUNITIES?

Nestlé Waters has an interdependent relationship with its communities and a direct social and economic responsibility toward the

communities where we live and work.

We believe an open dialogue will help drive collaboration to create sustainable social and

economic value in our communities.

When it comes to creating shared value we believe that our local communities come first.

Nestlé Waters will partner for social and economic development in all communities where we live and work.

We will work with our neighbors to develop plans and targets that drive meaningful opportunities for local communities.

We will collaboratively develop solutions which improve access to safe drinking water in the communities in which this is a challenge.

Our impact on the local economy goes beyond the creation of direct and indirect jobs, the payment of local taxes and the stimulation of local supply chains in isolated rural areas where the bottled water industry is very often the primary economic contributor to local communities.

Bottling activities are difficult to delocalise, given the specificity of the water resources it uses. In addition, at our operating sites, Nestlé Waters is committed to protecting biodiversity and collaborating with external water stakeholders (water users, authorities, communities) on the long-term sustainability of the watersheds in which we operate. In 2012, we introduced a community relations guidebook for factories, which provides a framework and tools for factories to engage in constructive dialogue with the local community, to understand specific concerns and address expectations.We will measure the impact of our contributions by working with independent auditors to assess and report our progress towards identified social and economic development needs in our local communities.

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3 2 — N E S T L É WAT E R S I N Q U E S T I O N S N E S T L É WAT E R S I N Q U E S T I O N S — 3 3

DID YOU KN OW?

Launched by Vittel, the first plastic bottle came out in 1968. This bottle was made of PVC (polyvinyl chloride), this plastic material was

not recyclable or reusable and had to be incinerated.

Q U E S T I O N 0 8

IS PLASTIC BOTTLE WATER

A NECESSARY NEED?

Yes. In a world where consumption habits evolve towards consumption

on-the-go, bottled water is more and more useful to meet the hydration needs

of a growing number of consumers who, with no other choice, would go towards

the consumption of other packaged beverages such as fizzy drinks.

For centuries, transportation and storage of water have been one of the main concerns of humankind. First carried in animal skin flasks, then earthenware & stoneware jars, glass bottles

before being packed in plastic bottle, water bottles followed the process of industrialisation. Plastic material was a true revolution. A revolution because plastic was a lot less heavy and fragile than glass (and the most used container at this time) thus reducing the weight for transported materials and because plastic is cheaper thus decreasing and improving the purchase price of the product.

Plastic bottles actively contributed to the development of the water bottle category as this new packaging brought huge demands from consumers who could consume their favourite product in all and any circumstances.

In 1992, the first bottle in PET (polyethylene terephthalate) was introduced and once again, this evolution was a revolution as PET combines protection of product’s qualities with characteristics such as lightness, resistance, transparency and recyclability.

For these reasons, PET is the preferred packaging material in the beverage industry.

Almost half a century was needed to go from glass to PVC and a quarter of a century from PVC to PET and since then, the whole category actively works on developing the new packaging generation, which combines PET benefits with more sustainable practices such as bio-sourcing.

Plastic material is mainly petroleum-sourced and its production is expected to double by 2025.

We are already looking for new solutions.

We have a specialised team dedicated to developing packaging with better environmental performance.

The team applies recyclable-by-design principles and carries out life-cycle analysis to minimize the environmental footprint of all new packaging. Nestlé Waters also reduce total plastic tonnage used in our plastic bottle through art design optimization. We also collaborate with academia and participate in technical forums to share and acquire knowledge.

Over the past 10 years, Nestlé Waters has reduced the weight of its packaging per liter by 22 per cent.

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Q U E S T I O N 0 9

N E S T L É WAT E R S I N Q U E S T I O N S — 3 5

HOW DO YOU ADDRESS PLASTIC

PACKAGING WASTE?

Empty PET bottles are high-value resources that can be recycled in a wide range

of applications. However, today, only one out of two PET bottles is collected for recycling.

Nestlé Waters’ ambition is to partner to create effective use of plastic bottle and

improve its environmental impact.

Nestlé Waters is actively contributing to plastic PET (*)

(polyethylene terephthalate) collection, the packaging material most used by the beverage industry. This

material combines product’s quality protection with lightness, resistance, transparency and recyclability.

Focus on the end-of-life of PET bottles: Empty PET bottles are high-value resources that can be recycled in a wide range of applications, such as in textile or in the car industries, or to create new bottles for the beverage industry. This is why PET is today the most recycled plastic packaging worldwide.

Nestlé Waters recognises that PET bottles ending up as waste is a challenge for the beverage industry. We believe that the solution lies in a global and collaborative approach with all stakeholders across the PET value chain. This is why Nestlé joined global alliances such as the Trash Free Seas Alliance through The Consumer Goods Forum and the New Plastics Economy managed by the Ellen MacArthur Foundation.

For example, Nestlé Waters Canada is founding partner of The Canadian Beverage Container Recycling Association (CBCRA), a not-for-profit and industry-funded organization committed to increasing recycling rates in Canada.

Focus on the upstream of PET bottle value chain: Emerging technologies may provide solutions to further decouple PET production from non-renewable resources

Our experts are collaborating to find more sustainable bio-based source materials for our plastic bottles, which do not compete with food for human and/or animal consumption.

We are also collaborating to develop technologies that may render food-contact r-PET more available and its sourcing more cost-efficient.

q�As an example, our Resource and Arrowhead brands in the U.S. use 50% recycled PET in their bottles and Levissima in Italy is already using a percentage of bio- based PET in their bottles

q�Nestlé Waters and Danone have joined forces with Origin Materials, a start-up based in Sacramento in California, to form the NaturALL Bottle Alliance. Together, the three partners aim to develop and launch, at commercial scale, a PET plastic bottle made from 100 per cent sustainable and renewable resources.

Weight reduction: Nestlé Waters has reduced the weight of its packaging per liter over the past 10 years by 22%. Nestlé Waters North America introduced the new-generation Eco-Shape bottle. This 0.5-litre bottle weighs just 9.2g and is 25% lighter than the previous bottle.

(*) PET is a critically important material for Nestlé Waters bottling activity containing 2/3 of total material needed for packaging. Glass is another key component representing above 25% and is fully recyclable.

3 6 — N E S T L É WAT E R S I N Q U E S T I O N S

PLASTIC BOTTLE

How to recycle PET plastic bottles?

At Nestlé Waters, we commit to partner to create effective use of plastic bottle and improve its environmental impact. We understand that countries differ in their ability

to collect, sort, reuse, recycle and revalue packaging. This is the reason why Nestlé Waters will support most effective and cost-efficient

packaging waste management system that is relevant to each local context.

We will focus our efforts on promoting collective action that will improve the collection rate of our plastic bottles where our PET outputs are greatest and marine litter is highest.

Nestlé Waters believes consumers play an important role in helping recycling efforts through disposing of waste plastic properly. We have contributed to raising awareness

of our consumers through our brand platforms, such as Zephyrhills®’ partnership with Keep Tampa Bay Beautiful and Tampa Bay Water for the clean-up of

the Hillsborough River and Coastal Cleanup.

DID YOU KNOW?

3 8 — N E S T L É WAT E R S I N Q U E S T I O N S N E S T L É WAT E R S I N Q U E S T I O N S — 3 9

Q U E S T I O N 1 0

Bottled water uses far less water than other drinks!

DID YOU KN OW?

* Includes water used in the factory as well as water used by suppliers or third parties for packaging, energy and transportation.

HOW DO YOU REDUCE YOUR

ENVIRONMENTAL FOOTPRINT?

We believe that we can develop our business while having a positive impact

on earth’s natural capital. To do so, Nestlé Waters continuously improves

its environmental performance.

Moreover, 90% of our bottled wateris consumed in its country of origin.

We are continually reducing our energy consumption and GHG emissions for manufacturing and transport. We

strive to always improve our modes of transport towards low carbon-emitting options. Between 2011 to 2016, Nestlé Waters reduced its overall GHG emissions by 17% and has achieved a reduction of 17% in total (renewal and non-renewable) on-site energy consumption rate per litre used to produce water.

We continuously improve the manufacturing process to reduce our water consumption and preserve resources.

Since 2011, we have achieved a 20% reduction in the water consumed per litre produced (0.51 l/l).

More than 80% of our factories have undergone a Water Resource Review, which is an internal audit of our water resources management. Each Nestlé Waters factory has a water resource champion in charge of monitoring the water resource and ensuring that any preventive actions to protect the source are put in place.

We strive to optimise our modes of transport towards low carbon-emitting options.Our longstanding experience in supply chain management has built a significant expertise in logistics and delivery processes that are the most efficient in the consumer goods sector.

BOTTLED WATER

2.5L*

OF WATER ARE USED FOR 1 LITRE OF BOTT-LED WATER

BEER

300L*

OF WATER ARE USED FOR 1 LITRE OF BEER

SOFT DRINK

570L*

OF WATER ARE USED FOR 1 LITRE OF SOFT DRINK

4 0 — N E S T L É WAT E R S I N Q U E S T I O N S

In 2016 Nestlé Waters invested in innovative factories such as 100% renewable electricity at Buxton (UK), the first agricultural biogas plant at Henniez

(Switzerland), best in class in energy saving for Nestlé Vera (Castrocielo, Italy), solar panels for Nestlé Pure Life (Port Qasim, Pakistan, modern water processing

facility at Nestlé Pure Life (Nigeria), and innovative processing technology at Nestlé Pure Life (Thailand).

DID YOU KNOW?

90% of our production is sold in its country of origin. The majority of our exported brands are distributed to neighbouring countries. Only two of our brands, Perrier and S. Pellegrino, are exported further afield and for this 90% is shipped via sea given its large transportation capacity, the sea transport mode has the lowest ratio of carbon emission per liter of water. As a result, the carbon footprint of a Perrier PET bottle from France to the US is comparable to the production of one average soft drink produced and sold in the US and a Perrier glass bottle exported from France to the US is similar to the production of one bottle of orange juice produced and sold in the US.

In China, Nestlé Waters has optimised its route- to-market for its e-commerce sales, reducing 50% of transport distances.

We are also exploring ways to optimise the transport of our products by using intermodal transport options as well as new technologies.In Italy, where 44% of our products travel by rail, we make the most of the country’s north-south railway network by using an intermodal transport system.

In North America, our Home and Office business has initiated a pilot project, now extended, to replace its regular truck fleet with hybrid vehicles (petrol and electric engines).

4 2 — N E S T L É WAT E R S I N Q U E S T I O N S N E S T L É WAT E R S I N Q U E S T I O N S — 4 3

Q U E S T I O N 1 1

Bottled water should be the top choice when it comes to daily hydration.An experiment at a university in the U.S. showed that when bottled water is removed from a vending machine, with a water fountain close by, students

were more likely to choose a sugar-sweetened beverage instead of water from the water fountain (Source: Nestlé Waters North America, 2012).

DID YOU KN OW?

HOW DO YOU MANAGE HEALTHY

HYDRATION IN YOUR GLOBAL PORTFOLIO?

Water makes up over 90% of our product portfolio. Nestlé Waters offers waters

as well as beverages that meet consumers expectations in terms of daily

occasional pleasure.

We believe that plain water (whether bottled or tap) should be the top choice when it comes to daily hydration, as it doesn’t

add any calories to the body. To tackle the worldwide obesity rates that have more than doubled since 1980 according to the World Health Organization (WHO), several scientific associations support a reduction of sugar-sweetened beverages and then recommend drinking water.

Portability, taste and convenience of bottled water must be highlighted as it helps people to meet their hydration needs throughout their active lifestyle: at work, at school, during sports activities, etc.

Nestlé is committed to continuing to reduce the level of sugars in its food and beverage products and help consumers having daily intake of sugar no higher than those recommended by the WHO and other leading international and national authorities.

Nestlé Waters has already reduced the sugar content by an average of at least 10% over three years (2014-2016) in those products that do not meet the Nestlé Nutritional Foundation criteria for sugars as defined in the Nestlé Nutritional Profiling System.

We have committed to implement a further sugar reduction of 5% by 2020. We aim to provide healthier beverage choices.

OUR TARGETS

q�By 2018, we will publish an open-access platform together with partners that offers global statistics and insight into people’s fluid intake.

q�By 2020, we will launch national campaigns in 10 countries promoting healthy hydration with public and private partners. We will inspire 25 million children to drink water.

4 4 — N E S T L É WAT E R S I N Q U E S T I O N S N E S T L É WAT E R S I N Q U E S T I O N S — 4 5

The book “Realms of water” is an invitation for a journey to the sources of natural mineral water from Nestlé Waters. It uncovers the origin and production

secrets of our 15 mineral water brands.

DID YOU KN OW?

Q U E S T I O N 1 2

WHAT MAKES THE TASTE

OF MINERAL WATER UNIQUE?

Mineral water is unique with its own history, geological journey, texture,

character and taste which has remained unchanged through the ages.

The taste of bottled water depends on the type of water (mineral,

spring or drinking water) and individual’s perception of taste.

The journey of water: Mineral waters are unique, their taste, density and the fizz of the bubbles in the case of a sparkling water, bear the hallmark of the terroir from which they originate.

The water changes from one area to another. After having begun its journey on the surface in the catchment area, water continues on its journey, feeding the groundwater, where mineral water will be collected.

This called the aquifer, where underground water is stored, either flowing freely or confined. The geological profile of soil impacts on the duration of water transit underground and the circumstances of this water journey (it usually takes many years). Water carries minerals and trace elements in specific quantities depending on the subsoil and rocks it encounters. It can therefore have a low, medium or high mineral content.

4 6 — N E S T L É WAT E R S I N Q U E S T I O N S

Published on June 2017 by Nestlé Waters MT, Corporate Communications, 12 Boulevard Garibaldi, 92130 Issy-les-Moulineaux – France. Text: Nestlé Waters. Copyrights: © Philippe Gontier, p. 2 - Augustin Detienne, p.11 - Nestlé Waters France, p. 19 - Nestlé Waters MT (right free), p. 24-25 - Fran Collin, p. 30-31-37 - Lionel Deriaz, p. 41 - Nestlé Waters France, p. 47. Conception by MullenLowe Paris Agency. Printed on paper PEFC with plant-based inks.

A journey of the senses:

The combined passion and effort of our in-house experts, internationally renowned sommeliers and customers’ tests have captured the flavours and nuances of each water and mapped the tastes of water into a classification with a set of six families across the still and sparkling categories:

q Still waters:Still water Colors

Sparkling water Colors

V - Graphic guidelines

4-colors Process (CMYK) and Pantone targets

C 100M 45Y -K -P 300

P1 C 37M -Y -K -P 2905

C 65M -Y -K -P 298

P2 C 22M -Y 73K -P 367

C 80M -Y 100K -P 361

C 100M -Y 100K 35P 356

P3C -M 30Y 45K -P 149

C -M 55Y 85K -P 1585

C 10M 70Y 90K -P 159

C -M 85Y -K -P 219

C 80M 70Y -K -P 2725

C 85M -Y -K -P P.CYAN

4-colors Process (CMYK) and Pantone targets

S1

C 80M 6Y 100K -P 361

C 100M 80Y -K -P 288

C -M 100Y 100K -P 185

S2

C -M 40Y 100K -P 137

C -M 72Y 83K 79P 4975

C -M 100Y 100K -P 185

S3

(High definition files available in the CD)

Tastes great

Tastes great

Tastes great

Tastes great

Tastes great

Tastes great

IMPORTANT NOTE : The technical color target to follow is CMYK. Pantone numbers are given for reference only (as Pantone colour chart may vary slightly from one country to another)

Goût unique

Goût unique

Goût unique

Goût unique

Goût unique

Goût unique

Light & pure - Nestlé Pure Life - is a water, soft with low mineral and salt content.

Still water Colors

Sparkling water Colors

V - Graphic guidelines

4-colors Process (CMYK) and Pantone targets

C 100M 45Y -K -P 300

P1 C 37M -Y -K -P 2905

C 65M -Y -K -P 298

P2 C 22M -Y 73K -P 367

C 80M -Y 100K -P 361

C 100M -Y 100K 35P 356

P3C -M 30Y 45K -P 149

C -M 55Y 85K -P 1585

C 10M 70Y 90K -P 159

C -M 85Y -K -P 219

C 80M 70Y -K -P 2725

C 85M -Y -K -P P.CYAN

4-colors Process (CMYK) and Pantone targets

S1

C 80M 6Y 100K -P 361

C 100M 80Y -K -P 288

C -M 100Y 100K -P 185

S2

C -M 40Y 100K -P 137

C -M 72Y 83K 79P 4975

C -M 100Y 100K -P 185

S3

(High definition files available in the CD)

Tastes great

Tastes great

Tastes great

Tastes great

Tastes great

Tastes great

IMPORTANT NOTE : The technical color target to follow is CMYK. Pantone numbers are given for reference only (as Pantone colour chart may vary slightly from one country to another)

Goût unique

Goût unique

Goût unique

Goût unique

Goût unique

Goût unique

Rich & revitalising - Vittel - is a natural mineral water with mineral content that is perfect to accompany meals.

Still water Colors

Sparkling water Colors

V - Graphic guidelines

4-colors Process (CMYK) and Pantone targets

C 100M 45Y -K -P 300

P1 C 37M -Y -K -P 2905

C 65M -Y -K -P 298

P2 C 22M -Y 73K -P 367

C 80M -Y 100K -P 361

C 100M -Y 100K 35P 356

P3C -M 30Y 45K -P 149

C -M 55Y 85K -P 1585

C 10M 70Y 90K -P 159

C -M 85Y -K -P 219

C 80M 70Y -K -P 2725

C 85M -Y -K -P P.CYAN

4-colors Process (CMYK) and Pantone targets

S1

C 80M 6Y 100K -P 361

C 100M 80Y -K -P 288

C -M 100Y 100K -P 185

S2

C -M 40Y 100K -P 137

C -M 72Y 83K 79P 4975

C -M 100Y 100K -P 185

S3

(High definition files available in the CD)

Tastes great

Tastes great

Tastes great

Tastes great

Tastes great

Tastes great

IMPORTANT NOTE : The technical color target to follow is CMYK. Pantone numbers are given for reference only (as Pantone colour chart may vary slightly from one country to another)

Goût unique

Goût unique

Goût unique

Goût unique

Goût unique

Goût unique

Bold & distinctive - Contrex - is a natural mineral water with a high mineral content and a strong personality.

q Sparkling waters:

Still water Colors

Sparkling water Colors

V - Graphic guidelines

4-colors Process (CMYK) and Pantone targets

C 100M 45Y -K -P 300

P1 C 37M -Y -K -P 2905

C 65M -Y -K -P 298

P2 C 22M -Y 73K -P 367

C 80M -Y 100K -P 361

C 100M -Y 100K 35P 356

P3C -M 30Y 45K -P 149

C -M 55Y 85K -P 1585

C 10M 70Y 90K -P 159

C -M 85Y -K -P 219

C 80M 70Y -K -P 2725

C 85M -Y -K -P P.CYAN

4-colors Process (CMYK) and Pantone targets

S1

C 80M 6Y 100K -P 361

C 100M 80Y -K -P 288

C -M 100Y 100K -P 185

S2

C -M 40Y 100K -P 137

C -M 72Y 83K 79P 4975

C -M 100Y 100K -P 185

S3

(High definition files available in the CD)

Tastes great

Tastes great

Tastes great

Tastes great

Tastes great

Tastes great

IMPORTANT NOTE : The technical color target to follow is CMYK. Pantone numbers are given for reference only (as Pantone colour chart may vary slightly from one country to another)

Goût unique

Goût unique

Goût unique

Goût unique

Goût unique

Goût unique

Soft & elegant - Henniez - is a natural mineral water with carbonation, thin and delicate bubbles.

Still water Colors

Sparkling water Colors

V - Graphic guidelines

4-colors Process (CMYK) and Pantone targets

C 100M 45Y -K -P 300

P1 C 37M -Y -K -P 2905

C 65M -Y -K -P 298

P2 C 22M -Y 73K -P 367

C 80M -Y 100K -P 361

C 100M -Y 100K 35P 356

P3C -M 30Y 45K -P 149

C -M 55Y 85K -P 1585

C 10M 70Y 90K -P 159

C -M 85Y -K -P 219

C 80M 70Y -K -P 2725

C 85M -Y -K -P P.CYAN

4-colors Process (CMYK) and Pantone targets

S1

C 80M 6Y 100K -P 361

C 100M 80Y -K -P 288

C -M 100Y 100K -P 185

S2

C -M 40Y 100K -P 137

C -M 72Y 83K 79P 4975

C -M 100Y 100K -P 185

S3

(High definition files available in the CD)

Tastes great

Tastes great

Tastes great

Tastes great

Tastes great

Tastes great

IMPORTANT NOTE : The technical color target to follow is CMYK. Pantone numbers are given for reference only (as Pantone colour chart may vary slightly from one country to another)

Goût unique

Goût unique

Goût unique

Goût unique

Goût unique

Goût unique

Lively & thirst quenching - - San Pellegrino – has lively and strong bubbles.

Still water Colors

Sparkling water Colors

V - Graphic guidelines

4-colors Process (CMYK) and Pantone targets

C 100M 45Y -K -P 300

P1 C 37M -Y -K -P 2905

C 65M -Y -K -P 298

P2 C 22M -Y 73K -P 367

C 80M -Y 100K -P 361

C 100M -Y 100K 35P 356

P3C -M 30Y 45K -P 149

C -M 55Y 85K -P 1585

C 10M 70Y 90K -P 159

C -M 85Y -K -P 219

C 80M 70Y -K -P 2725

C 85M -Y -K -P P.CYAN

4-colors Process (CMYK) and Pantone targets

S1

C 80M 6Y 100K -P 361

C 100M 80Y -K -P 288

C -M 100Y 100K -P 185

S2

C -M 40Y 100K -P 137

C -M 72Y 83K 79P 4975

C -M 100Y 100K -P 185

S3

(High definition files available in the CD)

Tastes great

Tastes great

Tastes great

Tastes great

Tastes great

Tastes great

IMPORTANT NOTE : The technical color target to follow is CMYK. Pantone numbers are given for reference only (as Pantone colour chart may vary slightly from one country to another)

Goût unique

Goût unique

Goût unique

Goût unique

Goût unique

Goût unique

Vivacious & energizing - Perrier – has a strong carbonation with wild and peppery bubbles.

4 8 — N E S T L É WAT E R S I N Q U E S T I O N SNESTLÉ WATERS FRANCE

Juin 2017