Nestlé facing “Watergate” as scandal deepens

Nestle under investigation

• Nestlé Waters investigated for illegal filtration
• Paris offices searched by French authorities
• Allegations of masking contamination in mineral water
• Perrier’s “natural” label under threat
• EU rules prohibit altering mineral water
• Estimated fraud exceeds €3bn

Nestlé remains under investigation in France over alleged illegal filtration of its mineral water products.

Last month, it was revealed Nestlé‘s Paris offices had been searched by French Authorities, as part of an ongoing investigation into Nestlé Waters, a division of the food and beverage giant.

The investigation follows allegations by non-profit organisation, Foodwatch, that Nestlé Waters’ used illegal filtration systems for its water, to mask contamination by bacteria and pesticides.

As the case continues, French authorities are deciding whether Nestlé Waters’ world-famous brands, including Perrier, can continue calling themselves “natural mineral water”.

Unlike tap water, which is filtered and treated, European regulations stipulate that mineral water cannot be altered. To be labelled “natural mineral water,” it is prohibited from being treated in any way that changes its characteristics.

“This really is our Water-gate,” says Stéphane Mandard, who has led investigations at Le Monde newspaper. “It’s a combination of industrial fraud and state collusion.”

Government officials have been equally shocked by the scandal.

“Despite the fact that this method of disinfection is a fraud against consumers, authorities chose not to pursue legal action following these revelations. They decided not to inform the public of this fraud, not to inform European authorities, and not to inform local authorities who would have had direct oversight,” said Alexandre Ouizille, a senator who led the committee on mineral water, in a press conference.

Senator Ouizille went on to say that France’s agency in charge of fraud control estimated the total cost of the deception to be over €3bn.

Human activity and extreme weather events, such as flooding, are resulting in increased groundwater contamination. This means that previously clean and pure mineral water sources are now no longer deemed safe to drink and therefore require intervention.

Nestlé has been approached for comment on the latest development in the case but has yet to respond.