- To capitalize on consumers turning away from soda in droves, particularly sugary and diet varieties, Nestle is introducing new flavored sparkling water products and increasing its investment in the U.S. market.
- This year, the company plans to build seven new production facilities in the U.S. and invest up to $200 million in the country. The Wall Street Journal reported, "The new production capacity is roughly twice as much as the company has added in the past five years combined."
- The water vertical is important to Nestle, as it generates 8% of the company's overall sales and supports Nestle's moves into the health and wellness space, including removing artificial colorings from its candy bars in the U.S.
While Nestle may see positive growth opportunities for bottled water globally and in the U.S. specifically, the company has come under fire in California. Some are protesting the company for continuing to bottle water in the state while California suffers from a drought, which has recently led to new mandatory restrictions on water usage for consumers, businesses, and some farmers. Californian farmers are said to use a significant amount of the state's water supply, up to four times as much as cities and towns. However, farmers claim that since cutting back due to the drought, even before the limitations were put in place, that frequently cited amount is not always accurate, especially for this year.