Nestlé will sell half of its waters business in a $3.4 billion transaction that will create a new premium beverage company called Peranel.
Deal structure and brand portfolio
The Swiss food giant announced a 50:50 joint venture with private‑equity firm Platinum Equity. The new entity, named Peranel, will encompass more than 30 water and premium beverage brands, including S.Pellegrino, Source Perrier, Essentia, and Nestlé Pure Life. Local water labels will also move into the venture.
Peranel will be headquartered in Paris and led by Muriel Lienau, who currently runs Nestlé’s water business. The transaction values the venture at roughly €4.9 billion, about $5.6 billion, according to the filing.
Strategic context for Nestlé
Its waters segment accounted for roughly 4 % of total sales and has been under pressure in recent years. The move follows a broader strategy by CEO Philipp Navratil to trim underperforming assets and redirect resources toward higher‑growth categories such as frozen foods.
Earlier this year, Nestlé sold its Blue Bottle Coffee brand to Centurium Capital and spun off the remainder of its ice‑cream operation to Froneri. It is also evaluating the sale of its mainstream vitamins, minerals, and supplements business.
Navratil said the partnership with Platinum Equity will give Peranel “full flexibility to invest in brands and pursue growth opportunities.” He added that the joint venture will be better positioned to execute its plan with “enhanced agility.”
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The creation aligns with Nestlé’s 2024 announcement to separate its waters and premium beverages into a distinct business unit, a step intended to help meet a $2.8 billion cost‑reduction target by 2027.
While the deal is slated for completion in the first half of 2027, the immediate impact on Nestlé’s financials appears modest. The firm reported first‑half sales of 43 billion Swiss francs, about $52.6 billion, marking a 2.5 % decline year over year.
Looking ahead, the split could free up capital for Nestlé to accelerate innovation in its core categories. The waters market remains volatile, and the success of Peranel will depend on how quickly it can adapt to shifting consumer preferences for premium and sustainable products.
For now, Peranel’s leadership has signaled a focus on “innovation, premiumization, operational excellence and sustainability,” echoing the language used by Nestlé in its statement.
The venture’s performance will be watched closely as a bellwether for how large consumer‑goods firms can restructure legacy assets while preserving brand equity.