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Nestlé Makes Billions Bottling Water It Pays Nearly Nothing For

Published: September 21, 2017
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In rural Mecosta County, Mich., sits a near-windowless facility with a footprint about the size of Buckingham Palace. It’s just one of Nestlé’s roughly 100 bottled water factories in 34 countries around the world.

Inside, workers wear hairnets, hard hats, goggles, gloves, and earplugs. Ten production lines snake through the space, funneling local spring water into 8-ounce to 2.5-gallon containers; most of the lines run 24/7, each pumping out 500 to 1,200 bottles per minute. About 60 percent of the supply comes from Mecosta’s springs and arrives at the factory via a 12-mile pipeline. The rest is trucked in from neighboring Osceola County, about 40 miles north. “Daily, we’re looking at 3.5 million bottles potentially,” says Dave Sommer, the plant’s 41-year-old manager, shouting above the din.  

Silos holding 125 tons of plastic resin pellets provide the raw material for the bottles. They’re molded into shape at temperatures reaching 400F before being filled, capped, inspected, labeled, and laser-printed with the location, day, and minute they were produced—a process that takes less than 25 seconds. Next, the bottles are bundled, shrink-wrapped onto pallets, and picked up by a fleet of 25 forklifts that ferry them to the plant’s warehouse or loading docks. As many as 175 trucks arrive every day to transport the water to retail locations in the Midwest. “We want more people to drink water, keep hydrated,” Sommer says. “It would be nice if it were my water, but we just want them to drink water.”

 

Nestlé SA started bottling in 1843 when company founder Henri Nestlé purchased a business on Switzerland’s Monneresse Canal. “Ever the curious scientist, [he] analyzed and experimented with the enrichment of water with a variety of minerals, always with a singular goal: to provide healthy, accessible, and delicious refreshment,” reads Nestlé’s website. Today there are thousands of bottled water companies worldwide—there’s even Trump Ice—but Nestlé is the biggest globally in terms of sales, followed by Coca-ColaDanone, and PepsiCo, according to Euromonitor International. Nestlé Waters, the Paris-based subsidiary, owns almost 50 brands, including Perrier, S.Pellegrino, and Poland Spring.

Last year, U.S. bottled water sales reached $16 billion, up nearly 10 percent from 2015, according to Beverage Marketing Corp. They outpaced soda sales for the first time as drinkers continue to seek convenience and healthier options and worry about the safety of tap water after the high-profile contamination in Flint, Mich., about a two-hour drive from Mecosta. Nestlé alone sold $7.7 billion worth worldwide, with more than $343 million of it coming from Michigan, where the company bottles Ice Mountain Natural Spring Water and Pure Life, its purified water line.

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