MOT WATERS2010 THE NESTLÉ WATERS 2009 RESULTS & YEARBOOK UNITED BY OUR VALUES SPECIAL SECTION ON TASTE GREAT WATERS, GREAT TASTES TM THE HEALTHY CHOICE VITAL AND ESSENTIAL SUSTAINABLE SUCCESS LASTING VALUES, LIGHTER FOOTPRINTS UES STE RS, ES TM CHOICE SENTIAL SS ES, TS “Each water has its own language. If you know how to listen, it can tell you its story.” Master Tseng, one of the world’s greatest tea masters united by our values high performance continuous improvement trust and respect personal commitment caring and responsible Nestl&eacute; Waters is a human Company providing a response to individual human needs throughout the world with speciic concern for the well-being of both its consumers and its employees. This is relected in our attitude and our sense of responsibility towards people. We aim to increase sales and proits but, at the same time, to raise the standard of living everywhere we are active and the quality of life for everyone. We are convinced that it is the people who form the strength of the Company and that nothing can be achieved without their commitment and their energy, which makes people our most important asset. Involvement of people at all levels starts with appropriate information on the Company’s activities and on the speciic aspects of their work. Through open communication and active co-operation, everyone is invited to contribute to improvements enhancing Company results and personal development. WATERS2010 contents GREAT WATERS, GREAT TASTES. SPECIAL SECTION ON TASTE 04 FROM THE GROUND TO THE GLASS 07 AN EVERLASTING STORY 09 WHAT GIVES WATER ITS TASTE? 13 WHAT MAKES GREAT TASTE? 16 SIX PROFILES, SIX FAMILIES 19 TASTE PRESERVATION THE HEALTHY CHOICE 22 ACHIEVING THE WATER BALANCE 25 HEALTHY HYDRATION, HEALTHY LIFESTYLE 26 SPREADING THE WORD ON HEALTHY HYDRATION 29 NESTLÉ PURE LIFE PUTS THE FAMILY FIRST 30 THE CHOICE IS YOURS! SUSTAINABLE SUCCESS 34 BETTER ALL ROUND 36 RESPONSIBILITY FOR OUR RESOURCES 38 MEASURING UP TO BEING GREEN 45 SHARING SUCCESS WITH SOCIETY FACTS & FIGURES 48 EXECUTIVE COMMITTEE 50 KEY FIGURES 52 A YEAR REVIEW IN IMAGES 54 OUR BRANDS At Nestl&eacute; Waters, we are convinced that quality and taste are inextricably linked. The taste that defines each and every one of our Nestl&eacute; Waters’ brands is not only a key factor in determining consumer choice, it is also a testimony to quality. This Yearbook will bring you to the heart of the taste of water. It will explain why we so value the inherent tastes of our waters, what these tastes reveal, and how we protect them and foster individuality in our brands. At Nestl&eacute; Waters, we believe that consumers who care about quality also care about taste. Our Yearbook also aims to demonstrate, with concrete examples, how our organisation and our people are committed to building long-term business success by creating shared value in the communities and countries in which we operate. Developing a sustainable business is synonymous with improving the lives of others, be it through actively promoting healthy hydration, through responsible water resource management and conser- vation, or through forging mutually constructive relationships with local communities. Equally important is water education for future generations – an area that Nestl&eacute; Waters is dedicated to supporting and developing worldwide. Great waters, great tastes, the benefits of healthy hydration and genuine corporate social ''responsibility it all contributes to building and reinforcing trust, the essential basis of our relationship with society. I hope that you will enjoy reading this brochure and that it will contribute to reinforcing your understanding of our activity and your conviction that our Nestl&eacute; Waters’ products go beyond water. John J. Harris Chairman & Chief Executive Officer 01 TM 04 FROM THE GROUND TO THE GLASS 07 AN EVERLASTING STORY 09 WHAT GIVES WATER ITS TASTE? 13 WHAT MAKES GREAT TASTE? 16 SIX PROFILES, SIX FAMILIES 19 TASTE PRESERVATION the full flavour of water GREAT WATERS, GREATTASTES EVERY WATER IS UNIQUE We can all develop a personal preference for a particular water, as each water has its own distinctive taste, texture and tendencies. Why is this? How can it be so? Can we really “taste” water as we taste wine and food? How can we express what we taste? Nestl&eacute; Waters has led an extensive study, with world-class tasting experts. An enlightening experience... SPECIAL SECTION ON TASTE TM 03 04 MEASURING MINERAL CONTENT The specific character of natural mineral water is gauged by evap- orating the water at 180°C and weighing the dry mineral residue which remains. Water is described as being rich in minerals when the dry residue is more than 1,500mg per litre. At the other end of the scale, one which is very low in minerals has less than 50mg per litre. From the ground to the glass How well do we know the water that we drink? Where does it come from? What gives each water its unique composition? The character of an individual water is much more than a definition required by ''law it is the result of an underground journey. Let us take a closer look. There is water, and there is water... Be it spring water or natural mineral water, all our brands comply with strict legal requirements, which may vary from country to country. European legislation distinguishes three kinds of bottled water: natural mineral water, spring water and drinking water. Natural mineral water: according to French law – one of the oldest and strictest legislation systems in Europe – natural mineral water must come from an underground water deposit. It is characterised by its original purity and by a stable composition of minerals and trace elements. To meet legal criteria, natural mineral water must not be treated in any way which might affect its natural composition, and must be bottled at source. What is more, this is the only kind of water to be officially recognised as being beneficial to health. Spring water: as its name suggests – and in line with French law – the provenance of It is during their underground journeys spring water must be an underground that different waters forge their unique aquifer or water deposit. Certified spring identities. Drop after drop, water from waters are perfectly safe for human precipitation – rain, melting snow and ice consumption in their natural state, and – filters into the ground, where it should not have been treated, nor added to, penetrates to different depths through before bottling. They differ from natural various types of ''sediment sometimes mineral waters in that the composition of soft clay or shale, sometimes harder their mineral and trace elements may vary limestone or sandstone. Some of the slightly, and they are not authorised to layers through which water travels are make any therapeutic claims. In some porous, others are fissured. Having countries, however, legislation may vary: trickled through cracks and between for example, in the United States, some bands of impermeable rock, water treatment of spring water may be eventually emerges at the surface as permitted. a spring, or collects underground. << Drinking water: refers to water, whatever its origin, which has either been bottled “as is” or treated to render it safe for human consumption. These waters must be free of all parasites, micro-organisms and any substance which might constitute a potential threat to health. Clearly, certified drinking water must comply with a minimum number of standards and regulations. Sparkling or carbonated waters: form a diverse family. Mineral water is labelled as “naturally sparkling” or “naturally carbonated” when the gas content of the bottled product is identical to that of its natural source. If additional gas, captured independently from the same source, is introduced to give the bottled water a higher gas content than exists naturally, it is referred to as “fortified”. “Carbonated natural mineral water” is produced by infusing the water with carbon dioxide, the origin of which is not the same as the water source. Hydrogeology’s hidden depths special section on taste 05 special section on taste special section on taste 06 << The hydrogeological profile of any water reflects the nature of the earth it has travelled through, but the duration and the circumstances of the journey are also important factors. “Water which has filtered through sandstone for fifteen years will have a very different taste and texture to water which has seeped through limestone for a century”, explains Nestl&eacute; Waters’ hydrogeologist, Ronan Le Fanic. With the passage of time, and through encounters with various layers of substrate and rock, water absorbs a specific combination of trace elements and minerals, which may be low, medium or high in content. This individual blend of components is the distinguishing feature of each water, and the reason for its unique taste. • WATER TABLE: the water level in an aquifer. the branch of geology which Piezometric surface: an imagin- ary level for which the height above a confined aquifer is deter- mined by the pressure within the aquifer. In a well drilled into a confined aquifer, water will rise to the level of the piezometric surface. WELL: a vertical, inclined or hori- zontal structure tapping into an aquifer. Several drilling methods are widely used, depending on the information sought and the rock types being drilled: percus- sion, air or mud rotary drilling. Artesian well: in a confined aqui- fer, if the piezometric surface is above ground level, water will naturally flow out of the well. SPRING: a natural outflow where the level of groundwater meets the surface. Spring water moves from the recharge area through porous soil or cracks in rocks until it is forced out of the ground by natural pressure. The availability of spring water may vary, depending on the season and recharge from precipitation. Tapping into spring water re- quires special structures which collect groundwater, protect it from contact with the surface environment and store it in a clean receptacle, before piping it to its final destination. Helpful terms for hydrogeology Hydrogeology: the study of the earth’s water systems, i.e. focuses on the origins, distri- bution and circulation of water within the earth’s crust, and how water interacts with soil, subsoil and rock. It encompasses the exploitation and conser- vation of underground and surface water resources. AQUIFER: (from aqua, the latin word for water, and fere, meaning to carry) a geological layer of per- meable rock which holds water or through which water flows in considerable quantities. A porous aquifer is formed by the depos- ition of sediments – particles derived from the weathering and erosion of rocks, by rain, wind and frost, over time. It is the spaces between these particles which allow water to circulate, and the average size and distribution of particles determine the quantity and size of spaces. Sand and gravel sediments usually constitute the most promising aquifers. They tend to be more extensive and continuous. RECHARGE AREA: the zone where water from precipitation infil- trates into an aquifer. Unconfined aquifer: an aquifer in which the upper water boundary is at atmospheric pressure. Confined aquifer: a saturated aquifer between two imper- meable layers, where the water pressure is greater than atmos- pheric pressure. special section on taste AN ITALIAN JOURNEY In Italy’s Lombardy Alps, S.Pellegrino natural mineral water bursts forth from the earth, at a constant temperature of 24.5°C, from a spring fed by an underground aquifer 500 metres below. During a thirty-year cycle, the water absorbs many different minerals, including calcium and magnesium, which aid digestion. Thanks to those inimitable S.Pellegrino bubbles any sense of fullness disappears. Acqua Panna begins its under- ground journey under Mount Gazzaro and emerges at the surface ten to fifteen years later, at an altitude of 900 metres, in glorious countryside known for centuries for the beauty of its woodlands and wildlife. Filtered and purified during its journey through sandstone deposits in Tuscany, the water soaks up equal amounts of bicarbonates, calcium and phosphates, and a tiny hint of sodium. This stable balance of diverse elements is the reason behind its excellence. 07 An everlasting story As the source of life, water has also been a source of fascination, for all cultures, since time immemorial. Naturally, at Nestl&eacute; Waters, we are particularly interested in the history of our own waters, which tell some truly remarkable tales. Wondrous water People have associated water with magical and mysterious properties since the dawn of ''time today, its power to fascinate us remains as compelling as it ever was. One of nature’s finest gifts, water symbolises life and death, creation and destruction in primitive societies. The development of civilisations depends on water, and water is also capable of bringing about their downfall. Its purifying properties are believed to offer protection. In great religions, water is the element which cleanses sins, and purifies the body and soul. A potent symbol of divine intervention, water is revered as having miraculous powers, and its sources are often worshipped. During the industrial age, with all its discoveries and scientific advances, water was hailed as a vector of health and hygiene, and from the beginning of the nineteenth century was analysed and sterilised as never before. Spa towns became popular, offering baths to soothe and treat a variety of conditions, while attracting wealthy tourists, who came to “take the waters”. The most sought-after natural mineral and spring waters were soon being bottled for people to take away with them and prolong the positive effects of their stay. During the twentieth century, bacteriological controls had improved enough for tap water to become a more widespread commodity. In more recent times, the importance of pure, clean water has returned to the forefront of our collective conscience – a response, in part, to mass industrialisation and pollution. In today’s stressful world, water is recognised for its regenerating and soothing powers, and again appreciated as the source of life and of physical and spiritual well-being. Analysing the factors which shape people’s relationship with bottled water, Nestl&eacute; Waters led a study in 2009 into the different portrayals of water over time, and considered the findings in relation to individual brands. The most valued attributes of purity, vitality, and above all, origins – geographic, historic and symbolic – are all strong features of the waters in our brand portfolio. Using these criteria, along with inherent features of our own brands, Nestl&eacute; Waters has developed a tool which helps us to reveal the rich heritage of our waters and to highlight the unique character of each one. The rich heritage of our waters The benefits of natural mineral waters have been appreciated since Antiquity and their individual stories span centuries, even millennia, and are punctuated with many key moments. Buxton, in England, and the San Pellegrino spring near Bergamo in the Lombardy Alps, were both frequented in the Middle Ages. During the Renaissance, Leonardo da Vinci is said to have visited the latter to “take the waters”, and in this same period, when the Medici family governed Florence, Acqua Panna, the water of Mugello, sprang forth from the Tuscan Appenines to the delight of the Grand Duke, Lorenzo dei Medici. Vittel was renowned for its thermal baths in Gallo-Roman times, but the real story of its water, and that of French mineral waters in general, began in 1605, when Henry IV created an official body, the General Inspectorate of Baths and Mineral Fountains in the Kingdom (Surintendance G&eacute;n&eacute;rale des Bains et Fontaines Min&eacute;rales du Royaume) in recognition of the virtues of natural mineral waters. << BUXTON, “A DROP OF PURE BRITAIN” What better slogan to describe our Nestl&eacute; Waters UK brand? The simple fact is that Buxton, the leading natural mineral water in the United Kingdom, boasts an exceptional pedigree. Filtered through limestone for 5,000 years, the water flows out in the stun- ning landscape of the Peak District National Park in Derbyshire, and has been enjoyed since the Romans discovered the spring – Two thou- sand years ago – right up to the present day. The source of a water that was cherished by pilgrims and queens alike – notably Mary, Queen of Scots – Buxton grew to be the most frequented spa town in all of Europe in the early nine- teenth century. Its popularity declined gradually from the 1930s, but since its relaunch in 1987, Buxton water has risen again to become the British public’s benchmark for bottled water. Official supplier of the England Cricket Team, Buxton combines natural virtues with a noble heart: the very essence of “Britishness”! Visit Buxton at www.buxtonwater.co.uk << In 1632, Louis XIII went further, issuing an order that natural mineral water should be transported in wax-sealed bottles, and fixing their price. Broader public interest in mineral waters was acknowledged in France in 1856, with a decree that established protected areas within which drilling and underground work were banned. La Belle Epoque, at the turn of the nine- teenth and twentieth centuries was a Golden Age for mineral waters, when spa towns in France, Italy and England were among the most frequented places in Europe. The year 1854 marks a key chapter in the history of Vittel, when Louis Bouloumi&eacute; bought a fountain bearing the name Vittel in the Vosges region. His first bottling plant, using stoneware bottles, opened in ''1875 by the end of the century the plant had already produced a million bottles. • special section on taste 08 special section on taste 09 THREE KEY ASPECTS OF ANALYSIS The microbiology of natural mineral water is strictly con- trolled. From the moment it is drawn from the source, and throughout the entire commer- cialisation process, it must be free of any parasites, patho- genic and non-pathogenic micro- organisms. However, natural mineral water does contain its own natural flora which protects it from outside microbiological contamination. This flora remains constant and is evidence that the water has not been subject to any treatment – one of the legal specifications for natural mineral waters. Physico-chemical analysis is the means of measuring – to the nearest nanogram – the specific mineral composition of any water. This is also key in confirming the absence of any contamination, and the quality of packaging. The mineral contents specified on the label list the principal elements present, which – in their specific quantities – give each water its individual identity and properties. Sensory analyses, besides being valuable in the reformulation of water, are essential to ensure that the taste of our waters remains constant. They are carried out daily at the PTC in Vittel and in our bottling plant laboratories. Everything which affects sensory perceptions is rigorously ob- served: taste, smell, colour, tex- ture, aspect – and the slightest hint of divergence from the characteristic blueprint of each water is immediately investigated. What gives water its taste? The individual personality of water is forged during its underground journey, during which numerous encounters – with the local rock, substrate, soils, minerals and trace elements – impart a specific and unique taste profile. Taste, however, also depends on the individual, so everyone can try the tasting experience. At Nestl&eacute; Waters, keeping on top of taste is one of the goals of our Product Technology Centre (PTC) in Vittel. Journeys through space The influence of minerals and time... and trace elements Geology has a lot to do with the distinctive As they filter, trickle and flow underground, taste of different waters. Take Buxton, for individual waters absorb minerals (such example, our often-cited Nestl&eacute; Waters’ as calcium, magnesium, sodium, flagship brand in the United Kingdom, potassium), trace elements (fluorides, which filters underground through chromium, cobalt, copper, iron, lithium, limestone for 5,000 years (see box on for example), and nitrates, bicarbonates, page 8). Meanwhile, in France, Vittel sulphates and chlorides – but in experiences a similar voyage through the combinations and concentrations which limestone of the Vosges mountains. are specific to each water. As a result, both waters have a rich mineral content, and a balanced, These elements have an important role lingering taste. to play in ''health for example, some may In contrast, Nestl&eacute; Waters’ brands such However, they are also key factors in as Sohat in Lebanon, Erikli in the determining taste, clearly demonstrated Marmara region of Turkey, or indeed by waters such as Contrex and H&eacute;par, Levissima, from an Italian glacier, all which both have a high mineral content, originate at high altitudes, but travel creamy texture, complex aroma and for a relatively short time (from a few lingering finish. months to a few years) through small aquifers. The tastes of these waters reflect a softness and lightness which mirror their journeys. Yet another profile is shared by Acqua Panna, our Italian water of noble ''pedigree La Vie, the leading brand in Vietnam which originates from Long An in the Mekong ''delta Henniez, born in the Broye hills of Switzerland, and Valvert which rises in Belgium deep within a protected forest covering 3,500 hectares. All these waters come from sandy, porous aquifers which give them a notable balance and considerable lightness. compensate for deficiencies in diet. An encounter with taste buds Yes, every water has a unique identity, but when it comes to taste, perception also plays a part, as flavour is determined by the surroundings and experiences of the taster. What actually happens in the mouth? Taste perception is a combination of different sensory information: the tongue detects the five basic flavours: salty, sweet, acid, bitter and ''umami'' (savoury). At the same time, the nose is noting the aromas which rise up at the back << special section on taste 10 TAKE THE TASTE TEST! The same water tastes differently depending on whether you are drinking on an empty stomach, enjoying a slice of chocolate cake, or eating asparagus. The tempera- ture of water can also make a difference to its taste: too hot or too cold and the balance of elements changes. This explains why taste experts recommend that still water is best drunk at room ''temperature their advice is different for sparkling water, because those bubbles tend to taste better when they have been slightly chilled! << of the palate – a process we call retro-olfaction. Meanwhile, receptors situated all around the mouth and throat cavities register texture and consistency. Collectively, these taste receptors, visible as small lumps on the tongue, are called “taste buds” and we have about 100,000 of them, each representing a nerve ending. When we take a sip of water, our taste buds leap into action, sending multiple messages to the brain: salty flavour, earthy taste or smooth texture? This is where things get a little more complex: the way we treat this information varies from one individual to another, depending on perception threshold levels, our expectations and our past experiences. What is more, perception is influenced by where we live, and the mineral levels in water to which we are generally exposed. What we taste depends on our habits and lifestyle – in other words, taste is a question of culture! Inevitably, the profile of the taster has a bearing on taste perception and the subtlety of appreciation. Professionals distinguish between sommeliers or tasting experts, those who have had some training in sensory analysis, and general consumers. At Nestl&eacute; Waters, we employ sommeliers and oenologists, culinary experts and trained tasters, because we want to offer maximum taste satisfaction to all our consumers around the world. Within the Nestl&eacute; group, our waters undergo comparative testing by consumers who are asked to indicate their preferences. For Nestl&eacute; Waters, these tests help us during the renovation process to enhance our products, where modification is possible and authorised. They also enable us to improve communication on and appreciation of the taste characteristics of our waters. Vittel: our test centre for taste expertise At Nestl&eacute; Waters, the place where we test for taste is Vittel. Not only is this town the birthplace of our brands, it is also home to our Quality Assurance Centre. With 22 staff, this pivotal laboratory – a well-established centre of excellence – is charged with the mission of guaranteeing the microbiological and physico-chemical quality of water for all our brands, worldwide. Daily quality controls ensure that no pollutants or external molecules are able to alter the intrinsic nature of our bottled waters at any stage of the industrial process, transportation or storage. The centre also guarantees that the composition of our natural mineral waters remains constant, thereby ensuring the consistency of their taste. The laboratory analyses samples sent from all markets where we operate, and its members carry out audits and training off-site. Vittel is also home to our Product Technology Centre (PTC), a hub of expertise and R&D, dedicated to product develop- ment and packaging. Here, our experts have the facilities to simulate the entire production chain, from water extraction right through to blow-moulding bottles, filling them and pack-wrapping. Our PTC experts are on hand to support quality control procedures in all our plants. Always looking ahead, they are also working on developing future packaging materials, reducing the weight of bottles and new product formulations. Taste lies at the heart of all these research programmes. At the PTC, we train taste testing panels capable of ensuring daily controls in all our factories, while the centre serves as a permanent back-up in complex cases. Research extends to evaluating the impact on taste of any changes in packaging, such as caps and PET resin. As well as serving as a valuable control tool, sensory analysis also has a role in developing new tastes. By using prototypes and sensory mapping, the PTC is creating tools, with the help of panels of experts, to offer support in different countries where the group is present. In some regions (parts of the Middle East, Asia and the Americas), insufficient supplies of good quality drinking water have prompted Nestl&eacute; Waters to use our analytical expertise to develop our Nestl&eacute; Pure Life brand. Formulated on a case-by-case basis, depending on the local resources used, Nestl&eacute; Pure Life answers the need for safe, good quality water, and local taste preferences. A truly global water which is also local! • AN ATLAS OF ITALIAN INITIATIVE The origins, characteristics and properties of all Nestl&eacute; Waters’ Italian brands have been described in an Atlas of Mineral Waters, published in 2009. This beautiful work provides definitions, historical references and background information about hydration, water and the environment. The scientific research for the book was led by Umberto Solimene, a professor of thermal medicine at the University of Milan, who is also an advisor to Sanpellegrino on nutrition and health, and Mario Pappagallo, a medical journalist who writes for the Italian paper, Corriere della Sera. Available in bookshops, proceeds from sales of the Atlas are donated to the Project WET Foundation which supports Water Education for Teachers. special section on taste 11 Product Technology Centre Vittel special section on taste 12 “A taste for water” A new classification of natural mineral waters with a set of six families, based on similarities in taste. special section on taste 13 “THE WATER CEREMONY” or how to taste like an expert A word of advice: taste two or three waters at a time because it is easier to appreciate taste if you are making comparisons (and do not forget to rinse your mouth between each one). An absolute must: use glasses which are perfectly clean, ideally with straight sides, and separate glasses for each water. “Tasting a water in order to under- stand it is above all about emptying yourself to become receptive to it.” Master Tseng. Begin by filling the glass one third full. Take a generous sip (ideally at a temperature of between 11 and 13°C for still water, between 8 and 10°C for sparkling). 1. Observe. Lift the glass and look at the water from above, and horizontally to check that there are no tiny particles or abnormal colouring. 2. Smell. Bring the water under your nose and breathe in deeply, several times, ideally with your eyes closed. Allow the different images and ideas to wash over you, giving form to your sensations. Take a tip from a perfumer – to help define the different notes, ask yourself where you are. This really works! 3. Taste. Take an initial sip and let it lie on your tongue for a moment before swilling it around your mouth. Then hold the water over the back of the tongue before swallowing. This technique allows you to assess acidity, sapidity, strength, lightness and the “feel” in the mouth. Meanwhile, consider the aromas your nose is identifying. Which do you recognise? Do you detect any new notes? To assess balance and length in the mouth, take a second sip and let it linger on your tongue. Then inhale a little air through your lips and breathe out through your nose. What makes great taste? The sensory analysis of water For a comprehensive exploration of the taste of water, Nestl&eacute; Waters has developed a step-by-step process which is both original and rigorous. This gave rise to precise sensory criteria, a dedicated vocabulary and a system of classification based on six families. At last, it is possible to truly “taste” a water and understand why we like it. We hear a lot about the beneficial effects of water on health. Water is indeed the essence of life and healthy hydration is essential for optimising our physical and mental performance. Yet, let us not forget another of water’s great qualities: that each water has a unique taste – the hallmark of its ''homeland the expression of its origins. In the worlds of Master Tseng: “Each water has its own language. If you know how to listen, it can tell you its story.” Knowing how to “listen” to water is not something we learn overnight, but when we take the time to tune into our senses, we do actually find that we have “tasting” talent. Sensory analysis is all about paying attention to what we perceive – and learning the language which enables us to describe the sensations we discover in all their intensity and subtlety. Silence please... tasting in process! Tasting calls for absolute concentration and draws on all the senses. When our senses are stimulated, they send messages to the brain in the form of sensations. These are decoded and stored in a “bank” of past experiences, which we call “taste memory”. It is hardly surprising that an experienced taster has a more acute and nuanced taste memory, capable of recognising the most delicate aromas, including those notes associated with other foods, such as fruits or vegetables. Drawing on past experience also helps to explain why the taste of a water might bring back other ''memories a glorious walk in the mountains, perhaps? << special section on taste 14 << Great names in water tasting Six families with great taste To help us develop our tasting process, The tasting process enabled us to depict Nestl&eacute; Waters invited four distinguished each of the 140 waters in diagram form, tasters – three sommeliers and an expert showing their position on the scale for tea taster, whose palates are renowned each dimension. We were then able to the world over – to join our own group together waters whose profiles specialists. were similar. The outcome of this exercise Our guests were Andr&eacute;as Larsson, a six broad clusters, or families of taste: Swedish sommelier, nominated best three for still waters and three for sommelier in the ''world George Lepr&eacute;, sparkling. The names we have given them former sommelier in Le Grand V&eacute;four give a clear and evocative indication of and the Ritz hotels in Paris before each family’s overall nature: “bold and directing the Professional Studies distinctive”, “rich and revitalising”, “soft programme at the Academy of Wine in and elegant”, etc. ''Paris J&eacute;r&eacute;my Moreau, a young Franco- American, former sommelier at the Not only is our “waters map” a Jules Verne restaurant in Paris and pioneering tool for classifying waters wine consultant for the New York-based according to taste, it also opens up new wine business, Winebow ''Inc. and Yu Hui options for enjoying water, and will help Tseng, Taiwanese in origin and the only consumers to find their bearings in the female in the world’s top ten best known immensely diverse world of flavours and “Masters of Tea.” Master Tseng’s tea to experience a variety of different tastes. house in Paris offers 1,200 varieties. Consumers will soon be able to find An extensive and meticulous process We began by asking our guest experts to blind taste more than 140 samples of water in order to record their technical tasting notes. The same waters were then tasted by a broader panel of specialists from other professions (designers, perfumers, chefs). Collectively, they were able to transform the initial technical tasting notes into more consumer friendly language. The project team concluded that water can be evaluated according to seven different dimensions, and they devised a scale for each dimension which a taster can mark at specific points, labelled by a key word. For example, the scale which a taster uses to describe “strength” (one of the seven dimensions) ranges from “extremely light” to “full-bodied” (and passes through “delicate” and “intense”, for example). Some of the dimensions are ''objective others invite subjectivity, such as “imagery associations”, which reveal that water can be perceived as “aristocratic”, “sensual “or even “cheerful”! was a “waters map” which clearly shows information on taste at points of sale, to help them make their choices. This success in completing an in-depth study on water tasting, and in classifying our waters by sensory analysis takes taste to a new level of understanding and appreciation, and will go down as one of the highlights of 2009. • special section on taste 15 - + Extremely light Strength Full-bodied Short-lived Texture Thick and Heavy Secretive Imagery association Exuberant Refreshing Benefits Nourishing Fresh fruit Chemical Association with other flavours/foods Flat Length in mouth Intensity (wine keywords) Very fine Bubbles Fiery THE ITALIAN WATER CODEX: the reference work on taste Taste and gastronomy are serious matters in Italy. That is why a select group of world-class tasters was chosen to conduct a study, destined for restaurateurs and sommeliers, on behalf of S.Pellegrino and Acqua Panna: after all, it is no secret that our two sophisticated Italian mineral waters grace the finest dining tables. The resulting publication is the Water Codex, three mag- nificent volumes which present all the tasting criteria for different waters, rules for harmonising water with food and wine, and advice on serving. For an insight into this rich world, the Water Codex includes: • A method of water tasting which is every bit as rigorous and tech- nical as that of wine tasting, with special pages for making notes which guide the user and help create “a shared language be- tween fellow professionals”. • Recipes grouped according to their flavours and sensations: for a savoury taste, sea bass in a vinaigrette sauce with leek ''ravioli for a rich experience, free-range roast guinea fowl supreme accompanied by a cepe mushroom sauce and seasonal vegetables. It goes without saying that the Codex also offers advice on which waters are best to drink with these dishes, to achieve perfect harmony. • A guide to harmonious partner- ships between waters, wines and spirits, which is perhaps the first of its kind. In all, the Water Codex is a wonderful source of inspiration and advice. Those who may not encounter this glorious book in a professional capacity, can still enjoy a little taste of it at www.sanpellegrino.com THE SEVEN DIMENSIONS OF TASTE ™ T a s t e s g r e a t ™ T a s t e s g r e a t ™ T a s t e s g r e a t LIGHT RICH BOLD & & & PURE REVITALISING DISTINCTIVE These waters have pure and bright These waters have a slightly higher These waters have a high mineral sensations, and a lot of balance. They mineral content than the “light & and salt content. They are full- are soft, with a low mineral and salt pure” family, and have more b o d i e d a n d h a v e a v e lv e t y , content. Their freshness and fluidity structure. The taste of these waters sometimes almost an oily texture. is appreciated due to the feeling of is enhanced and revealed by a touch They are appreciated for their purity and the regenerative effect of savouriness. The main charac- “gustatory” qualities and due to the they provide. They are ideal for teristic of these waters is the sense of “nourishment” associated children due to their soft and complementary role played by their with their taste profile. They have a gentle taste. sweetness and their savour. These strong personality and are mostly waters are appreciated for their consumed on their own. inherently consistent mouth-feel. They are ideal to accompany meals. S T I L L W A T E R S Six profiles, six families 16 ™ T a s t e s g r e a t ™ T a s t e s g r e a t ™ T a s t e s g r e a t SOFT LIVELY VIVACIOUS & & & ELEGANT THIRST-QUENCHING ENERGISING These sparkling waters have very These waters have lively and long- These waters have a lot of ''personality soft carbonation. The bubbles are lived bubbles, which feel creamy their bubbles are very wild and so thin and delicate that they on the palate. peppery. These waters have a lot of seem almost ethereal. The bubbles They have a lot of presence on the movement and can wake up every part delicately tickle the tongue before palate and a slightly salty taste. This of the mouth. disappearing quickly. These waters salinity is well-balanced with acidity There is a tangy freshness associated show a lot of finesse, are supple and to give an overall refreshing, thirst- with their strong carbonation. These their texture is quite soft. Due to quenching feel. These waters can be waters are typically consumed on the soft and elegant nature of the consumed perfectly during meals or their own or may be used as a “mixer” bubbles, these waters are able to on their own. to create other drinks. wash the palate, thus making them ideal for accompanying meals. special section on taste S P A R K L I N G W A T E R S 17 BOLD Contrex is unquestionably a water with a & DISTINCTIVE RICH & REVITALISING special section on taste 18 LIGHT & PURE Contrex “It has a chalky, kaolin, lightly iodised nose. strong personality, with very overt aromas and an obviously high magnesium and calcium content. Its thick, dense texture gives a sensation of particles in suspension in the mouth. On tasting, it has salty, bitter notes with a lingering hint of bitterness in the finish.” SOFT “A fresh nose with mother-of-pearl hints & ELEGANT São Lourenço of seashell over a dominant granite note. The creamy, soft texture retains its suppleness. It tastes of a mixture of salty and acid elements such as fruit acids, giving quite a good balance overall, with a slight hint of bitterness.” LIVELY “The nose is fundamentally chalky with a citrus & THIRST-QUENCHING S.Pellegrino almost fruity flavour, not to mention a hint of almond milk. Its lively texture is very rich in variety. The distinctive taste of S.Pellegrino is its sharp lemony attack reminiscent of lemon juice, giving it an acidic bite.” VIVACIOUS & ENERGISING Perrier “A chalky nose and fruity notes conjuring up the acidity of a Granny Smith apple and the aroma of unripe apricot. It has a heavy, robust texture. Tasting Perrier produces a refreshing prickling sensation similar to pepper. Its strong, harmoniously dosed elements strike a balance between bitterness, acidity and salinity.” Acqua Panna “It has a good fresh feel on the nose, with a hint of wet granite. It is like discovering a clear stream. It has a light, almost silky, texture. Its balanced taste combines salty, bitter and sweet elements and conjures up wet white pebbles.” Expert analysis Master Tseng’s tasting notes Vittel “Its nose has hints of clay and chalk, as well as a freshness and softness reminiscent of sap from succulent plants. Its full texture is also oily, making it quite fluid. It gives off the scent of wet stones baked by the summer sun. There is a balance between salty and bitter flavours, with a touch of acidity, giving it freshness and a long finish.” S P A R K L I N G W A T E R S S T I L L W A T E R S special section on taste WATER TREATMENT For health and safety reasons, before bottling, we are author- ised to remove certain elements present in water. For example, manganese, fluoride or iron which may be present in suspen- sion and can oxidise over several weeks in storage, leaving brown deposits in the bottle. Depending on the nature of the treatment, local regulations specify under which categories treated bottled water may be lightweight, unbreakable and 100% registered, including mineral water, spring water, natural water, drinking water and purified water. In actual fact, no chemical disinfection is carried out on Nestl&eacute; Waters’ natural waters (mineral and spring water) in order to preserve the original quality of the product. 19 Taste preservation At Nestl&eacute; Waters, every one of our brands has a unique taste, and that is something we want to ensure that our consumers can count on – always. From the careful protection of our water sources, right through to the packaging of our products, we make sure that the great tastes we deliver are perfectly preserved. Bottles are ideal We believe that the bottle is the best form of container to guarantee that our waters stay pure and stable until they reach the consumer. Once hermetically sealed, our bottles are airtight and watertight, providing the perfect conditions to ensure that water quality, safety and hygiene are maintained, from the source right up to the moment when they are opened to drink. The very strict controls that govern packaging for food products also apply to all the materials used in our bottles and containers. This is further proof the water’s composition, each label bears that they are perfectly adapted to their protective role – providing the “use by date” is respected, and the bottles are stored away from excessive heat, cold and light. The main material used in our packaging is PET, a plastic that is recyclable. Glass is exclusively used in the restaurant distribution channel. Our own Quality Assurance Centre carries out regular controls, which extend as far as shop shelves, to track any eventual changes due to storage conditions. Finally, the label itself plays a part in protecting our waters – as well as being a source of information on a code, which guarantees traceability. << special section on taste 20 PERRIER PROMOTES ORGANIC In the southern Gard region of France, around the spring at Verg&egrave;ze where we bottle our Perrier brand, we struck a deal with the local farmers who rent land in an area of about a thousand hectares belonging to Nestl&eacute; Waters. Since the 1990s, farmers have committed to practising organic farming – using neither fertiliser nor pesticides. This agreement created new opportunities for small-scale producers in the face of growing demand for organic produce, and a valuable source of additional income. Today, 70% of the farmers in the Verg&egrave;ze basin meet our conditions, and organic wine production in the region is one of the most successful and profitable in the country. << Protecting resources Nestl&eacute; Waters has always been committed to looking after the water resources on which we depend. It is a key factor in our ability to guarantee the origins and truly natural tastes of our waters. Today, with rising demands for access to water and the increasing need for water conservation, we feel a particular responsibility to share our expertise in water resource management and work with the local communities where we are present. As the world leader in bottled water, Nestl&eacute; Waters has defined three types of protection which are crucial to the safeguarding of water: physical, regulatory and partnership-based. Physical protection means keeping the recharge area around a source free from pollution – in particular keeping industry and intensive agriculture at a distance. It also depends on being able to define and survey the protected area, and secure the sites where water is drawn. Add to this the need to ensure and maintain best practice in drilling and monitoring (such as water levels and microbiological content) while guaranteeing high-quality standards, and it is clear that physical security calls for precise specifications. Legal and regulatory protection determines what is permitted within defined and monitored areas. In France, the law has established three types of zone around a water source – from close by to further away – which are subject to regulatory control. Around the Vittel spring, 10,000 hectares of land are protected, representing 92% of the monitored recharge area, making Vittel the biggest protected site in the world. In Belgium, 3,000 hectares around the of organic wine. Valvert spring are legally protected. In countries without such legislation, Nestl&eacute; Waters acquires land to ensure protection of the water sources we use. Partnerships ensure protection by bringing together different parties with an interest in water resources, be they public authorities i.e. town councils or private operators, such as farmers. Wherever we can, Nestl&eacute; Waters promotes good practice, for example, encouraging farmers to reduce – or even stop – their use of pesticides and fertilisers, and helping to finance new equipment. Around our bottling sites for Levissima in Italy, and Erikli in Turkey, Nestl&eacute; Waters plays an active role in supporting the municipal water distribution systems, in a way that helps to ensure a sustainable supply for everyone. We know that the very presence of mineral water deposits can be a valuable natural resource for the develop- ment of local economies, and we are committed to building awareness about responsible water use and conservation in local communities. After all, taking care of water is a responsibility we all share. At Vittel, we continue to be deeply proud of our AGRIVAIR subsidiary, which has been an exemplary model of partnership in action since 1992. The result of scientific research and community cooperation, AGRIVAIR has enabled farmers to continue working within a protected area on land rented by Nestl&eacute; Waters, in exchange for respecting strict production conditions (no pesticides, no nitrates) over a long-term period. It is a model which has been copied in Switzerland, in the protected area around ''Henniez in Britanny, around the Planco&euml;t spring, and indeed, around our Perrier site, where a partnership is bearing fruit in the shape • 21 22 ACHIEVING THE WATER BALANCE 25 HEALTHY HYDRATION, HEALTHY LIFESTYLE 26 SPREADING THE WORD ON HEALTHY HYDRATION 29 NESTLÉ PURE LIFE PUTS THE FAMILY FIRST 30 THE CHOICE IS YOURS! the healthy choice VITAL AND ESSENTIAL LET’S DRINK TO GOOD HEALTH! Every sip of water helps to replenish the body with its main constituent. That’s why health and water go hand in hand. the healthy choice 22 THE IMPORTANCE OF GOOD HYDRATION “Water balance: the amount of water that we should drink every day to maintain bodily functions is calculated by the difference be- tween water output and water input, resulting in a 1.5-litre water intake per day*. Maintaining the water balance plays a vital role for our health.” Research shows that our regula- tion of water balance is extremely precise. The exact amount of water each individual needs depends on factors such as age, sex, climate (temp- erature and humidity), exercise levels and diet. Children lose proportionally more water than adults and yet they do not always think about drinking, even when they are thirsty. The elderly are very vulnerable: they are more susceptible to water loss as their kidneys are less ''efficient the sensation of thirst diminishes with age, and they tend to lose their appetite, so their water intake through food is reduced. *For a healthy sedentary adult living in a temperate climate. Achieving the water balance Water is an essential element in life and day by day we continue to get better at understanding its fundamental benefits for our health. A t Nestl&eacute; Waters, we are committed • Acting as a lubricant in joints and as a to carrying out and supporting research as part of our quest to lead in healthy hydration, and to ensure our own continuous development. A better grasp of the physiological basis of our need for water leads to new recommendations for promoting a healthy lifestyle which we are then able to act on. Hydration means more than just drinking ''water it is part of a healthy lifestyle which, when combined with physical activity, is key to maintaining good health. Without bringing any calories, water not only hydrates the body, but is also an essential partner in managing our weight. This is something that we take very seriously at Nestl&eacute; Waters. We are proud to be spreading this message and encouraging people, all over the world, to live healthier lifestyles. Water is the main constituent of our ''bodies so much so that the average adult is 60% water! Around two thirds of total body water is intracellular, while one third is extracellular, including blood. Put another way, a man weighing 70kg contains around 42 litres of water. To say that water is vital is no exaggeration! Our bodies need this considerable quantity of water because it plays several vital roles, of which the 5 main ones are: • Maintaining internal temperature at a constant level (thanks to sweating). • Eliminating waste products through urine. • Transporting nutrients derived from food through the digestive tract and to the body’s cells via the bloodstream. • Participating in numerous internal chemical reactions. shock absorber for the brain, spinal cord and foetus. This all adds up to an impressive list, which helps to explain why we cannot live long without water. In order for our bodies to be working as effectively as possible, it is important that the amount of water remains sufficient and relatively constant. This is a daily challenge because we are always losing water. How much we lose varies from person to person, and depends on factors such as age, physical activity, gender, pregnancy, surrounding temperature, and our general state of health. For a healthy adult, living a sedentary lifestyle in a temperate climate, the estimated daily water loss has been calculated at 2.5 litres. Where does all this go? Most is lost through the kidneys, as urine, which accounts for 1.5 ''litres a further 0.45 litres is lost through the skin by ''perspiring the lungs lose 0.35 litres by breathing, and the intestines use 0.2 litres converting food waste into faeces. Of course, all this water needs to be replaced – every day – in order to maintain the body’s water balance. Losing more water than we replace leads to dehydration. This is a common problem – especially for people who live in hot countries, those who do a lot of physical activity, or those who are unwell with fever, or diarrhoea. Not only does dehydration induce tiredness and headaches, clinical studies with adults show that it also reduces physical performance and concentration. Maintaining the water balance is therefore a daily priority, for everyone. So how can we help our bodies to make up for the Water OUTPUT 2.5l Water INPUT 2.5l Urine 1.5l Breathing 0.35l Sweat 0.45l Faeces 0.2l Water in foods 0.7l Water we drink 1.5l Metabolic water 0.3l the healthy choice 23 water we lose? The food an average adult Water, of course, is available from eats contains enough to replenish around 0.7 litres, and our natural metabolism also produces about 0.3 litres of water as a product of the biochemical reactions in our cells. However, this still leaves us short of 1.5 litres, which must be provided through drinking. Feeling thirsty is already a signal that dehydration has set in to a certain degree, so it is much better to avoid thirst by drinking regularly throughout the day. This is where young children and the elderly particularly need help as they depend on parents or carers to offer them fluids. Indeed, studies show that in some European countries, children often do not drink enough – especially when they are at school. As for deciding what to drink, plain water is the preferred choice for healthy hydration, quite simply because it provides only water without bringing any other elements to your body. different sources, such as tap water and bottled water, presenting consumers with further choices. Making the right choice in drinking water is important for health because water quality varies from place to place, and the very characteristics which make water essential for life – as a vector and a solvent, for example – can also render it vulnerable. The extremely tough regulations which govern the bottled water sector at industry, national and international levels, make it one of the most highly regulated products in the food industry. At Nestl&eacute; Waters, the safety and quality of all our products – be they natural mineral waters, spring waters or purified drinking water – are paramount. By offering safe, quality water, we are bringing healthy hydration within reach of millions of consumers, around the world, every day. • Water is an essential element in life The water output represents 2.5 litres a day*. The water input must be 2.5 litres a day* in order to maintain a balance. Drinking 1.5l* of water each day is the absolute requirement to maintain the water balance. * For a healthy sedentary adult living in a temperate climate. the healthy choice 24 the healthy choice 25 AN ESCALATING CHALLENGE There is a worldwide escalation in the number of people who are overweight or obese, and in dia- betes and cardiovascular disease. The World Health Organization estimated in 2005 that 1.6 billion adults were overweight and 400 million were obese. The WHO projects that these figures will soar to 2.3 billion and 700 million, respectively, by 2015. Prevalence of diabetes was 171 million adults in 2000 and is projected to rise to 366 million in 2030. According to the ICCR, a seden- tary lifestyle and an unbalanced diet – which provides “bad” fat and too much added sugar from food and drinks – are factors which strongly influence this escalation, but over which we can exercise some control. Healthy hydration, healthy lifestyle Overweight, obesity, cardiovascular diseases and diabetes increase each year worldwide. It is however possible to take action by practising a physical activity and leading a healthy lifestyle, in particular by adopting a simple gesture: drinking water. Hof a healthy lifestyle and a top ealthy hydration is an inherent part priority for Nestl&eacute; Waters. We are proud that our commitment to promoting a healthy lifestyle has been recognised all over the world. As part of this commitment, Nestl&eacute; Waters has decided to support the International Chair on Cardiometabolic Risk (ICCR) – an independent, academic centre of excellence for scientific research and medical education on obesity and related diseases. The ICCR is the very first international, academic, multidisciplinary organisation to look into cardiometabolic risk. Its objective is to promote scientific research on prevention, and on the evaluation and management of people at high risk of developing cardiometabolic disease. The Chair draws on the expertise of specialists - all of international renown - working in complementary disciplines, such as diabetes, cardiology, obesity, hypertension, nutrition and physical activity. One of the priorities for ICCR scientists is increasing understanding and awareness - among medical professionals and the general public - that a healthy lifestyle is a key factor in reducing the risk of obesity. Jean-Pierre Despres, Scientific Director of ICCR states that: “We need to be careful not only about the refined sugar in the foods we eat but also in the beverages we drink.” Water has no calories and is the ideal hydration partner when it comes to controlling our weight. • the healthy choice 26 Spreading the word on healthy hydration Well-chosen partnerships can be a truly positive force, both in communicating the benefits of a healthy lifestyle to consumers, and in supporting broad public health initiatives. That is why Nestl&eacute; Waters is committed to working with people, organisations and events which help spread the word that healthy hydration is vital. Ithe initiative to make sure that this the AHA included a US$ 500,000 donation n markets around the world, we seize healthy lifestyle. Our partnership with message reaches as many people as to support the association in its bid to help possible. As well as providing detailed people build healthier lives, thereby information on our labels – such as the decreasing the risk of heart disease Nutritional Compass on our Nestl&eacute; Water and strokes. brands, which indicates the importance of maintaining good hydration and gives advice on health – we launch campaigns to promote hydration. This is one area in which partnerships have proved immensely positive. Who better to help Nestl&eacute; Pure Life deliver its message of health and well- ness to mothers and families across the United States than the famous nutrition and fitness coach, Bob Greene? Bob is well known as the personal trainer of Oprah Winfrey, the nation’s most popular television star. However, his influence stretches well beyond the celebrity sphere. Bob’s upbeat style and down-to- earth message is shared with millions of people through his Best Life diet and fitness plan, which promotes “a way of living – of eating, of exercising, of viewing your life – that puts you at your healthiest”. In 2009, as part of our strategic partner- In addition, we supported AHA’s ground- ship with Bob, he became the market breaking national campaign – the START! spokesperson for Nestl&eacute; Pure Life, re- Heart Walks – to inspire people to become inforcing the importance of drinking water healthier by taking more physical exercise, as part of a healthy lifestyle. Bob also had by having a balanced diet, and by choosing a key role to play in a combined promo- water as a smart, calorie-free drink. tional campaign – the Pure Life/Best Life Our six regional spring water brands Challenge – by challenging consumers sponsored seven START! Heart Walks in to make a difference to their lives. six states during 2009. Every time, we Also in 2009, Nestl&eacute; Waters North employees put their best foot forward to American brands partnered with the lead the way! nation’s oldest and largest voluntary health organisation, the American Heart Meanwhile in Europe, after 11 years, our Association, to promote the benefits of a Vittel brand handed over the baton to << have been proud to see our own Bob Greene the healthy choice 27 the healthy choice 28 << Nestl&eacute; Pure Life as the Official water of the 2010 Virgin London Marathon. For the first time in the history of this major international sporting and fundraising event, our best-selling brand of bottled water was placed in the hands of 36,000 runners, helping to keep them hydrated from start to finish. The partnership is an excellent opportunity to promote the importance of hydrating while exercising, and provides Nestl&eacute; Pure Life with high visibility the world over: in addition to the thousands of participants, the event attracts 500,000 spectators, extensive media coverage, and is broadcast to 150 countries. The popularity of the London Marathon has helped to make it the world’s single biggest fundraising event, raising more than £480 million for charity since it began in 1981. Over the years, our employees have contributed to this impressive sum, and 2010 is no exception. Our Nestl&eacute; Pure Life team, made up of 50 employees from Nestl&eacute; companies, trained and ran together to emphasise wellness, and to support one of the UK’s largest charities, Marie Curie Cancer Care. When classes started again at the beginning of the school year in the UK, our Buxton brand developed a partnership to help chalk up hydration education in schools, colleges and universities through- out the country. Buxton was the brand featured in a campaign run by the UK subsidiary of the Compass Group – a company which offers the widest portfolio of food-service solutions in the world. Nestl&eacute; Waters UK worked closely with the Compass team, providing information on healthy hydration and ideas for artwork, aimed at age groups from four to over sixteen. Reaching young people in a total of 1,297 schools, 194 colleges and universities, the campaign delivered information packs and POS kits which were designed to raise awareness of the health benefits of drinking bottled water, provide links to the Buxton website, give information on the Buxton source, and support for optimising POS kits. • the healthy choice 29 HYDRATION IS CHILD’S PLAY! We know how much kids love to play games, and we also know that children may fail to drink enough during the day. Children get so wrapped up in their own worlds that they simply do not think to drink. That is why Nestl&eacute; Pure Life has come up with a fun way for parents to help children develop healthy habits from an early age. What young child would not enjoy racing around a busy water park searching for hidden objects staggering 900 glasses enjoyed every against the clock? Our Nestl&eacute; Pure Life online hydration game, called “Let Life Flow”, invites children to do just that. The challenge is to find eight glasses of water in the water-park scene as quickly as possible, and each time you click on one, a key fact about water pops up. simply by being alive. Nestl&eacute; Pure Life is The fun continues in a second game – an eight-level discovery quiz – developed by Project WET, the non-profit organisation whose mission is all aspects of water education. As a long-time partner of Project WET, Nestl&eacute; Waters is delighted to promote the game, as part of a new WET module on hydration. (www.nestle-purelife.com) Nestl&eacute; Pure Life puts the family first It is one thing to know that everyone needs to drink enough water – every day – to be healthy, but when it comes to helping families all around the world to achieve the goal of healthy hydration – every day – Nestl&eacute; Pure Life comes out on top. Tnumber one bottled water brand in oday, Nestl&eacute; Pure Life is the world’s value. In 2009 almost six billion litres of Nestl&eacute; Pure Life were sold in 27 countries on every continent, which adds up to a single second! It took just ten years for Nestl&eacute; Pure Life to reach this position and become our best-selling megabrand, and what is more, sales continue to rise. This is a success story that we find particularly encouraging at Nestl&eacute; Waters because in order to keep a healthy water balance, everyone needs to keep replen- ishing the water which they lose naturally not alone in providing the answer to this daily need. Along with Nestl&eacute; Aquarel and Nestl&eacute; Vera, our trio of Nestl&eacute; Waters’ brands make healthy hydration accessible and pleasurable for families, wherever they are based. We believe that water is the answer to healthy hydration and, as such, has a key role to play in healthy nutrition. This is not only the firm view of our own nutrition, health and wellness experts at Nestl&eacute; Waters, but is also the view shared by the leading professors and scientists with whom we collaborate. There is no shortage of evidence since we have numerous publications supporting this fact. Caring for your family means caring about the daily hydration of each and every member, and providing a healthy solution for them all. Adults, on average, need to drink eight glasses of water a day to stay (1) properly hydrated . Children need to be (2) given the taste for plain water, and they need to be encouraged to drink enough. Elderly people are also vulnerable and may become dehydrated unless they are offered water regularly. In providing healthy family hydration around the globe, Nestl&eacute; Pure Life is unquestionably our flagship water, strongly supported by Nestl&eacute; Aquarel and Nestl&eacute; Vera. In a total of 40 markets, these three Nestl&eacute; brands give consumers what they care about most: guaranteed quality, great taste and ready accessibility. So, how do we deliver satisfaction in all these areas? Quality is vital, and this is an area in which we will not compromise. Over 10 million controls and analyses are performed every year to ensure that the quality of Nestl&eacute; Pure Life water is preserved right up to the point of sale. Taste is what creates the individual character – the true personality – of each water. In the special section on Taste in this Yearbook, we explain why Nestl&eacute; Waters put a great deal of emphasis on water tasting with the help of specialists and sommeliers. That is how we are able to ensure that Nestl&eacute; Pure Life has the gentle, smooth and refreshing taste which all the family likes, glass after glass. It is the combination of wide distribution, high visibility and active promotion that makes Nestl&eacute; Pure Life so accessible. We know how much convenience counts, which is why our packaging experts keep coming up with a wide variety of formats so that Nestl&eacute; Pure Life can be easily enjoyed at home, at school, at work or on the go. Besides, because Nestl&eacute; Pure Life is affordable, it is an appealing and good value way to hydrate the whole family. This all helps to explain the success of our megabrand model. Yet, being the world’s leading healthy hydration company means more to us than selling our brands. We believe in spreading << the healthy choice 30 << messages about hydration, and that is also what we do through Nestl&eacute; Pure Life. The benefits of healthy hydration are being communicated through a global television campaign –already aired in over 15 markets. Popular high-profile personalities add punch through television endorsement campaigns. We also spread the word about healthy hydration with the help of independent scientists. We have developed a Hydration Tool Kit which involves doctors, patients, consumers and journalists. Finally, our educational programmes have been instrumental in promoting hydration and encouraging more sport in schools. Of course, we are well aware that building a world megabrand such as Nestl&eacute; Pure Life brings added responsi- bilities. Our commitment, as a company, to creating shared value means caring about the well-being of other people and of the environment. We strive to ensure that Nestl&eacute; Pure Life and our Nestl&eacute; brands are bottled close to where they are consumed in order to minimise their “water miles” and their carbon footprint. Developing lighter packaging – such as our Nestl&eacute; Pure Life Eco-Shape bottle, which is one of the lightest available – is another way in which we can tread more lightly. If we are serious about improving the quality of life through our products, we must also be serious about taking care of the environ- ment – and we are. • (1)1 glass = 20cl (2)For a healthy adult living in a temperate climate The choice is yours! With 64 brands of bottled water, produced in 36 countries and distributed in 130 worldwide, Nestl&eacute; Waters has developed a three-tier brand portfolio – prestige international brands, daily hydration brands and functional brands – offering the consumer a unique range of complementary, healthy choices. The first tier comprises our international prestige brands. Recognised and appre- ciated the world over, these distinguished ambassadors of our global image are some of our oldest and most famous brands, including Perrier, Vittel, Contrex, S.Pellegrino and Acqua Panna, all issuing from protected natural sources in France and Italy. Creating value in this sector is all about increasing choice and extending appeal with new formulas, innovative packaging and strategic positioning. Our second tier is the bedrock of our business. This biggest grouping of brands, includes our bottled waters for daily hydration and is itself divided into two sub-groups: our globe-trotting world leaders which champion the Nestl&eacute; brand name (Nestl&eacute; Pure Life, Nestl&eacute; Aquarel and Nestl&eacute; Vera), and our greatly appreciated local characters (more than 50 brands with strong market positions in their home countries or regions). The success of the three Nestl&eacute; brands within this group (Nestl&eacute; Pure Life, Nestl&eacute; Aquarel and Nestl&eacute; Vera) proves that we hit the right spot in recognising the growing need for safe, pleasant-tasting, affordable water for all the family. With this common purpose and shared identity (via the family logo), each brand provides water of identical quality, << the healthy choice 31 << produced in several locations to reduce transport costs – and therefore our environmental footprint. The flagship of this trio is Nestl&eacute; Pure Life which became the world’s most popular brand of bottled water in 2008, just 10 years after its launch. Alongside the Nestl&eacute; brand trio are what we call our core local brands – the prod- ucts of natural sources, distributed on a national level and well known throughout their country of origin. Individually and collectively, these core local brands serve as our anchor and our vehicle for brand awareness. Why? Because over time they have forged a strong identity with the landscape of their origin and with the people who drink and appreciate their unique tastes and qualities. They include market leaders, such as Poland Spring in the United States, and Levissima in ''Italy fast-growing brands, such as England’s Buxton – filtered for 5,000 years through the ancient limestone of the stunning Peak ''District and Switzerland’s Henniez, the newest member to enter our fold, but known for more than 25 years simply as “the water of the Swiss”. Not surprisingly, their individuality means that they represent different things to their consumers: in Spain, Viladrau stands for family ''values in Poland, Naleczowianka is linked with the origins of its source. All are different, and all are fundamental in bringing Nestl&eacute; Waters that little bit closer to consumers around the world. The third tier is an exciting group of brands whose added value lies in their natural contents of specific minerals, which are easily absorbed and beneficial to the body. Contrex and Vittel, for example, are natural mineral waters particularly rich in calcium – good for building and preserving healthy bones, while H&eacute;par is naturally rich in magnesium – important for intestinal transit. Drinking these products can provide health benefits for people with specific dietary needs. • the healthy choice 32 A TASTE OF OUR INTERNATIONAL BRAND GALLERY 1. Perrier “Melting” (Worldwide) 2. Erikli (Turkey) 3. Glaciar (Argentina) 4. Levissima “Richiamo” (Italy) 5. La Vie “Fairies” (Vietnam) 6. Nestl&eacute; Pure Life “Aqualand, Let Life Flow” (MEA) 7. Baraka (Egypt) 8. Poland Spring “Born Better” (United States) 9. Nestl&eacute; Pure Life “Embrace the Pure Life” (Global) 1. 2. 3. 4. 5. 6. 7. 9. 8. 33 34 BETTER ALL ROUND 36 RESPONSIBILITY FOR OUR RESOURCES 38 MEASURING UP TO BEING GREEN 45 SHARING SUCCESS WITH SOCIETY sustainable success LASTING VALUES, LIGHTER FOOTPRINTS ENVIRONMENT IS ESSENTIAL Lasting success depends on bringing benefits to people, communities and the environment in every country where we are present. sustainable success 34 Better all round Being a major player in the global bottled water industry brings opportunities and responsibilities, and none more so than when it comes to providing healthy hydration to people at home, work and on the move, the world over. Tneeds, we make every effort to ensure our o meet consumers’ day-to-day hydration products are available anywhere, any time and just how our consumers like them. We do this by constantly innovating – adapting our products, bottle sizes and formats – to meet the changing lifestyles and needs of consumers. We are also committed to increasing efficiency in Home and Office Delivery (HOD) services, enhancing Out of Home (OOH), retail and trade options, and improving our supply chains. Convenience and choice are key criteria. That is why we have developed a wide variety of solutions to suit the varying needs of individuals and communities. This is an ongoing process and one we take very seriously. Take our fun-shaped, school-bag-friendly Nestl&eacute; Pure Life bottles for kids. They encourage children to drink water or fruit-flavoured waters and are a cool way to combat obesity! The round 0.33-litre Nestl&eacute; Pure Life bottles, featuring the popular “Looney Tunes Active” label, have proved a lasting success since their launch in 2008. brand. The only product with a 5-gallon format, More recently still, in a thriving commercial and residential district of Buenos Aires, Nestl&eacute; Waters Argentina has opened a “water shop” providing a new, flexible supply base for HOD deliveries in the capital. The rapid service, longer opening hours and greater shop front visibility are proving very popular with customers and helping to boost the profile of Nestl&eacute; Pure Life. Ensuring that our products get to customers whenever and wherever they are needed requires effective logistical organisation between our production sites and the thousands of points of sale throughout the world. This is the crucial element in providing quality of service to clients and calls for innovation of a different kind. Our Italian team prioritised customer needs in a complete overhaul of its supply chain, completed in early 2008. The Network Model Optimization (NEMO) project has set new standards of excellence in delivering products more flexibly and more efficiently, while reducing costs. New production plants for Nestl&eacute; Vera sited in southern Italy have reduced transport distances, and the diverse needs of OOH and retail customers have benefited considerably from a simpler and more transparent ordering system. The result is a broader choice of product mix and improved service quality – a model for other markets to follow. Internationally, we are present in all distribution networks: major and medium-sized supermarkets, traditional shops, newspaper stands, caf&eacute;s and restaurants, Home & Office Delivery, food service industries, take-away, service stations and vending machines. In the United States, the enduring popularity of Poland Spring spring water is due to it being on hand in just about every sales outlet in its home territory of the northeast. In Saudi Arabia, where large formats for HOD dominate the market, we are proud that our Al Manhal water is the kingdom’s leading the business model is based on very high volumes, low-cost operations and quality, and supported by a dedicated fleet of delivery trucks and a well- trained sales department. This model paved the way for the success of our 5-gallon format of Nestl&eacute; Pure Life in the Saudi Arabian market. It is our ability to combine ever-increasing efficiency, effective logistical organisation, reliable service and extensive distribution networks that enables us to deliver our broad range of great tasting waters the world over. What is more, we firmly believe in the important social role of reliable bottled water in areas where accessible safe drinking water is still not something that people are able to take for granted. Our commitment to our consumers, and to all the communities in and near where we operate, is to build confidence and trust by always respecting three non-negotiable principles: compliance, sustainability and bringing shared value to society. • sustainable success 35 Exemplary Agrivair partnership When crop-damaging insects appear, Agrivair releases ladybirds which devour the harmful insects and thereby eliminate the need for pesticides. sustainable success 36 RESPONSIBLE RINSING In line with Nestl&eacute; Waters’ determined efforts to economise on the amount of additional water in industrial operations, our environmentally motivated employees at the Ruspino bottling plant in San Pellegrino took a long, hard look at the way in which those instantly recognisable green-glass bottles were being washed before being filled again. What they realised was that it was perfectly possible to reorganise the process so that the rinsing water could be reused, instead of being discarded straightaway. The result of this revelation is a saving of 8% of the water used in the plant. It just goes to show how even a seemingly small step can make a big difference. Responsibility for our resources Everybody needs water. It is quite simply our most precious natural resource. Quality of life in the 21 century will largely depend on st access to a sustainable and sufficient supply of good quality water, for people everywhere. Tworld’s leading bottled water his is a complex challenge. As the company, Nestl&eacute; Waters is deeply conscious of the importance of effective water resource management: it matters for the sustainable well-being of the world at large, and it matters for the sustainable success of our business. Unlike many other natural resources, the earth’s water moves in a continuous renewal cycle, so that while it may change in state, from liquid to vapour or ice, overall it remains relatively constant. However, a growing world population and global economic growth mean that demand for freshwater is rising and patterns of water consumption are changing. Responsible management is consequently more important than ever. This challenge concerns everyone. Here at Nestl&eacute; Waters, we take it seriously and it is a key strategic priority. In reality, sustainable water resource management calls for an understanding of, and a response to, the specific situation affecting each watershed. The issue is ''global the solutions are local. The fact that water conservation is fundamental to our business helps to explain our interest in and commitment to sustainable access to water, both in terms of quality and quantity. By continuously stepping up our own efforts, increasing awareness of the issues around the world, and forging partnerships with wide-ranging stakeholders, we are playing a part in defining and developing responsible, sustainable solutions. Being sustainable means being account- able, and that is why Nestl&eacute; Waters applies three criteria to every area in which our operations impact on the environment. We MEASURE our impact, we OPTIMISE our performance and we ENGAGE to set targets for further improvements. Nestl&eacute; Waters draws from many natural springs or wells around the world, and we keep a close eye on all of them. We have developed a sound monitoring system which gives us a clear picture of the hydrogeological and groundwater situation. The first tasks when considering a new site are to evaluate the existing water quality, and to consider the costs of geological surveys, analysis and drilling that are necessary for development. Our specialist hydrogeologists take great care to review at least one year’s worth of data. They also consult historical variations in seasonal weather patterns to build up a picture of the situation, and to determine whether or not there would be adequate water flow for our needs. We use our Water Stress Index (WSI) to measure water sustainability. This indicator, which combines a dozen qualitative and quantitative criteria, enables us to grade our water sources and optimise performance by putting in place any proactive protection programmes which might be needed. The information we gather at each site is crucial in enabling us to engage more closely with local stakeholders to work towards more integrated water resource management. We are not only concerned with safeguarding our own supplies. Although our sources of water for bottling are usually separate from those drawn on for use by local communities, we systematically support community-wide water resource management initiatives wherever possible. Environmental monitoring extends beyond the immediate locality of the source or spring to include sustainable success 37 the whole area where water is recharged as rainfall filters through the ground. In partnership with local communities, we work to ensure that only as much water is taken from an aquifer as its replenishment capacity allows. And as every Nestl&eacute; Waters’ factory is equipped with a wastewater treatment facility, any wastewater discharged back into the environment is sure to be clean. Our expertise in sustainable water supply management and water quality protection is built on decades of active commitment, and this is know-how that we are willing to share. Our hydrogeologists are increasingly represented at key international water events, such as the Water Resources Management Conference held in Malta in 2009. On a more local level, we have been pooling knowledge and experience for decades, and what better showcase of our initiatives than the widely celebrated Agrivair scheme in the Vosges region of France (see box “Taking a long-term view” on p.37). Agrivair covers 9,000 hectares and safeguards the “Green Island” hydro- geological basin, which is the source of three of our natural mineral waters, Vittel, H&eacute;par and Contrex. Initially set up in response to the threats posed by intensive farming in the 1970s, Agrivair – a Nestl&eacute; Waters’ subsidiary – continues to develop as an innovative partnership involving local farmers and many other stakeholders, all of whom have committed to more environmentally friendly practices in agriculture and land management. The scheme successfully protects the quality of the soils and sub-soils – and hence underground water source quality – while maintaining the productivity and profitability of all partners. The Agrivair model is being successfully echoed elsewhere. In Switzerland, the Henniez springs bubble up in the heart of networks. Multiple water leaks and loss in sixty hectares of protected wooded distribution can account for up to a 30% countryside, known as Domaine Henniez. loss in industrialised countries, a rate We manage this area as if it were a natural which can rise to as much as 70% in park, recently planting more than developing countries. 70,000 trees on the site itself, and working with stakeholders in the surrounding communities to establish a 100-hectare perimeter around the domain where intensive farming and pesticide use are excluded. These initiatives are among the first tangible results of the ECO-Broye programme, launched in 2009, which involves local municipalities, farmers and environmental groups jointly contributing to protect natural resources in the Broye region. Of course, each spring has its own hydrogeological characteristics, which means that specific water conservation programmes need to be established for each site, but with such encouraging examples of win-win success stories, sustainable management through cooperation makes perfect sense, wherever precious water resources may be. At Nestl&eacute; Waters, we also strive to be exemplary in how we use and save water during our industrial operations. Surprisingly, being the world’s leading bottled water company does not mean that we are major users of the world’s freshwater resources. In fact, our industrial activities account for just 0.0009% of the total amount of freshwater used every year. This is a tiny fraction of the amount used in industry as a whole (20%), and a mere drop in the ocean, compared with water use in world agriculture, which accounts for 70%. Another way of looking at water use is to measure the water footprint. By this, we mean the total amount of additional freshwater that is used to produce goods, throughout their life cycle, including the extraction of raw materials, manufacturing and transport, right through to a product’s end-of-life. For packaged beverages, bottled water would come out top of the list in terms of water use efficiency: fifty times more efficient than tea, 100 times more efficient than beer, 200 times more efficient than soft drinks and an incredible 300 to 400 times more efficient than fruit juices, milk, coffee and wine! (1) The fact that tap water does not require bottling means that it has the potential for a lower water footprint, but what is sometimes overlooked is the often considerable loss of water in supply Bottled water is probably one of the most water-efficient drinks available today, and at Nestl&eacute; Waters we are determined to keep working towards even greater efficiency. It is our responsibility to keep reducing the amount of water that we use in the industrial processes – such as cleaning and cooling – that are necessary in order to deliver safe, good-tasting bottled water to hundreds of millions of consumers, every day. Our top priority << TAKING A LONG- TERM VIEW For an enduring benchmark in groundwater resource protection, consider the far-reaching initiatives in a mountainous region of eastern France, known as the Vosges. Back in 1992, Nestl&eacute; Waters and the French National Institute for Agronomic Research (INRA) set up a multi-disciplinary research programme to consider long-term water resource sustain- ability in the area. Economists, historians, sociologists, agronomists and zoologists were all involved, and a few years later, in order to implement their findings, Nestl&eacute; Waters created a special subsidiary called Agrivair. What Agrivair has been doing ever since is uniting all the major local stakeholders in a long-term joint effort to ensure the quality and sustainability of mineral water resources. Early initiatives included changing from corn cultivation (to reduce nitrate fertilizer use and agricultural water consumption), composting manure and replacing chemical pesticides with ladybirds. More recent projects include investi- gating the use of plants to neutralise wastewater pollutants. Measuring up to being green The key to reducing environmental impact is to know where you stand in the first place. In an increasingly complex world, measuring the effects of economic activity is the challenging – yet fundamental – basis for sustainable development. Nestl&eacute; Waters is upfront in treading more lightly. sustainable success 38 << is to waste less and less water in our bottling plants. Our achievements are encouraging. In the last five years, we have succeeded in cutting the amount of additional water we use in our plants by 38%, so that today, on average, Nestl&eacute; Waters uses 0.68 litres of additional water to produce 1 litre of bottled water. This is great news but we want to do even better. Nestl&eacute; Waters is working to develop “dry” plants where there is no wasted water at all. We are spurred on by recent improvements: at bottling plants in the United States, in Italy, and in Spain, we have managed to cut water use to below 0.20 litres for every 1-litre bottle for seven of our factories. If that sounds hard to beat, there is even more impressive news: we now have one factory with zero wastewater, as it is all being reused locally by a third-party company in its industrial processes. It is good to be helping to build a better future. Indeed, the legacy we leave for the next generation is another area of responsibility which we take extremely seriously. At Nestl&eacute; Waters, we believe that educating young people today is fundamentally important as it will enable them to continue looking after a resource which is going to become increasingly precious. We play a part as the major sponsor of the Project WET Foundation – a leading organisation for water education. This independent, non-governmental organisation is based in the United States, but its influence extends around the world. Project WET (Water Education for Teachers) has been publishing water education materials for 25 years, providing science-based information for schools, parents, children and whole communities. The fun, interactive approach spreads vital messages about water, water resources, water management and protection. Project WET reaches millions of children in 50 countries across every continent, and works in partnership with UNESCO, USAid, the World Meteorological organisation and the World Water Council. Our own involvement with Project WET began in the United States, where we have provided funding and ongoing operational support for the past fifteen years, helping to train 30,000 teachers and extend the educational network across the nation. However, our contribution goes well beyond financial support, and extends far beyond North America. Since 2004, several Nestl&eacute; Waters’ subsidiaries have been leading the implementation and distribution of Project WET educational materials, with a specific focus on water conservation in their respective countries. Working hand in hand with local authorities, we have helped to deliver water education to more than 120,000 children in nine countries, in Europe, Asia and the Middle East. Taking responsibility for our resources into tomorrow is most definitely a hands-on commitment. • (1)Figures for soft drinks from ''WWF figures for all other beverages from the Water Footprint Network at www.waterfootprint.org sustainable success Athat the most meaningful way to t Nestl&eacute; Waters we take the view evaluate the environmental impact of our products is to look at all stages of their life cycle – and not just those for which we are directly responsible. This means that as well as taking into account our manufacturing, packaging and transport operations, we also include the production and development of the raw materials we use and the end-of-life of the product. To measure the environmental footprint of any product, we need to consider many criteria. The most pressing concerns today are greenhouse gas (GHG) emissions, the use of non-renewable energy and water consumption, but there are others, such as air and water pollution, and noise nuisance. At Nestl&eacute; Waters, we track a dozen different environmental parameters. Applying this multi-criteria approach to the whole life cycle of any product is a considerable task. We have risen to the challenge by developing a ground- breaking tool which measures the environmental impact of practically everything we do in the industry. We call it GEF – for Global Environmental Footprint – and it is now helping us to tread ever more lightly in all the regions in which we operate. The GEF software program is certified by ISO standards (14040/44:2006), giving it the highest credibility and industry-wide recognition. This invaluable tool gives us a precise picture of the environmental performance of our business during each stage of a product’s life cycle, and allows us to identify priority areas for action and optimisation. Last but not least, GEF serves as an eco-design tool. During the development of any project – be it the launch of a new brand, packaging or format, or the building of a new factory – we can use GEF to evaluate the environmental performances of various hypotheses and scenarios from the very outset. So, just how are we improving our environmental performance and what << FEATHER LIGHT One of the lightest 1.5-litre PET bottles in the global beverage market is rolling out of our plant in Spain. The new bottles are 20% lighter than their predecessors, thanks to less plastic in the neck and cap. This latest green improvement builds on Spain’s existing “one bottle for the ''factory two bottles for the consumer” strategy, whereby the same bottle format serves Nestl&eacute; Aquarel and the local Viladrau brand. The brands remain easily distinguishable by their labels, and each brand icon is stamped on the bottle’s shoulder. M e a n w h i le , i n t h e N o r t h American market we have announced our next-generation Eco-Shape 0.5-litre bottle. Using ® an average of 25% less plastic than its predecessor Eco-Shape bottle, this 0.5-litre bottle weighs 9.3g and is Nestl&eacute; Waters North America’s latest achievement in an ongoing commitment to reduce plastic consumption across its brand portfolio. The company’s first-generation Eco-Shape bottle was a significant step and is credited with reducing Nestl&eacute; Waters’ carbon emission equiva- lents by more than 356,000 tons. 39 sustainable success 40 TURNING TO TRAINS Spurred on by the knowledge that transport by rail means significantly less carbon emis- sions than travel by truck, we are making headway in delivering our popular brands of S.Pellegrino and Acqua Pannamore sustainably. Both brands are sold mainly in North America and Europe. Products destined for the former already take the greenest option – by boat – leaving Europe as the focus of our efforts to reduce the carbon footprint of these sought- after Italian products. Sustainability need not mean less service or extra cost. In France, S.Pellegrino’s largest market, we To further extend the environmental in Europe for instance, we carefully increased the volume of products transported by rail from 4.9% to 21.7% in just one year at no extra ''cost in Germany, 34% of the volumes now circulate by rail, which is a more sustainable and less costly option than by road. These increases in rail use are helped by the development of intermodal hubs in strategic locations which enable large containers to be easily trans- ferred from truck trailer to rail wagon, and vice-versa, maxi- mising train transport. << are our priorities? When we break bottled water factory to be awarded down the factors which contribute to the LEED certification for high-performing carbon footprint of a 1-litre PET bottle green buildings. Today, Nestl&eacute; Waters produced and distributed by Nestl&eacute; North America has more LEED-certified Waters, we find that manufacturing plants than any other beverage company accounts for 18%, transport for 27% and in the United States, and our Nestl&eacute; Pure packaging for 55%. Consequently, we are Life plant in Pennsylvania has gone focusing on these three main areas, further still, achieving Gold LEED where measurable commitments to certification in 2009. optimise sustainability will reduce our impact most effectively. By implementing a host of energy-saving Accounting for more than half of the facilities and ongoing investment in global environmental footprint of a PET efficient, high-performing equipment, bottle, packaging is our top priority, and we are constantly reducing the amount of the reason why Nestl&eacute; Waters is so energy used to produce 1 litre of bottled focused on light-weighting, in other water in our factories. Today, for every words, reducing the quantity of PET litre we produce, we use 22% less energy needed to produce each bottle. than we did five years ago. In pushing the limits of light-weighting, With our broad portfolio of locally sourced we need considerable R&D investment. brands, it is not surprising that 90% That is why we have set up a new of our bottled water is sold in the country laboratory at the Product Technology of origin. However, our top international Centre (PTC) in Vittel, where on-site brands are in demand the world over, specialist teams are dedicated to and more efficient transport is another of increasing our expertise in eco-design. our goals. Our 5-axe transport policy The results of their research and testing helps us to continually reduce the impact makes for excellent news: between 2004 of transport in our activities: and 2009 Nestl&eacute; Waters reduced the amount of packaging materials used per • Wherever possible, we favour trains litre of product by 24%. for long-distance distribution, and our Such success is well illustrated by the train-loading facility. Inter-modal 0.5-litre Eco-Shape bottle, introduced by solutions (long journeys by train, short Nestl&eacute; Waters North America in 2007, distances by truck) are implemented by and which now accounts for three our supply chain experts, when feasible. quarters of our 0.5-litre bottles produced in the United States. This top-of-the-class • Exploring new technologies is a key pioneering product uses 30% less plastic part of our approach, such as developing than the average comparable bottle. hybrid fleets for Home & Office ''delivery benefits of light-weighting, the Eco-Shape select our carriers by requiring Euro-4 or bottle is now being rolled out in other Euro-5 certified trucks, the most energy- regions and many similar initiatives are efficient trucks currently available being introduced elsewhere by Nestl&eacute; according to European standards. Waters companies around the world. The good news does not end there: • We locate our multi-source brands a next-generation Eco-Shape bottle, (such as Nestl&eacute; Pure Life) near major weighing under 10g, has been launched markets to reduce transport. By in the United States and Canada. increasing the number of smaller In our quest to grow greener, saving cities, in recent years we have succeeded energy is another priority. Even though in cutting back significantly on the our manufacturing processes are not number of kilometres travelled by a the main source of GHG emissions, Nestl&eacute; Pure Life bottle to reach the we have put the environmental impacts consumer. of our factories at the top of our agenda. We are committed to making sure that • Developing new packaging processes all our 97 manufacturing plants achieve helps us to transport more bottles in ISO 14001 certification by the end of 2010. a single ''container working with our As for building new factories, we aim to carriers to improve container specification set industry standards. In the United is helping to optimise truck use, and States, our Mecosta plant was the first through partnerships with other << (1) initiatives, careful maintenance of our Vittel factory is even equipped with a production units located near major sustainable success Quality Assurance Centre, Product Technology Centre Vittel 41 sustainable success Our LEEDing green plant Nestl&eacute; Pure Life has never been bottled in a building as environ- mentally sustainable as our Breinigsville plant near Allentown in Pennsylvania. The facility is the first of our Nestl&eacute; Waters North America’s sites to be awarded Gold-level LEED (Leadership in Energy and Environmental Design) status by the US Green Building Council. • Tap water has the lightest foot- A plethora of environmentally friendly design features contribute to making a production plant which is both energy efficient and low on water use. The visible – and not so visible – eco factors include maximising the amount of natural daylight filtering into the building, dual-flush toilets, water-based wall paint and high-filtration levels in the heating and cooling systems. All this adds up to a plant which saves around one million litres of water a year and enough energy to heat 125 homes for an entire winter season. This compares very favourably with water and energy use at a conventional office building! 42 Bottled water also does not use “grown” ingredients, such as sugar, clusions of the Life Cycle Analysis which eliminates the environ- mental impact of additional water, pesticides and energy usage associated with harvest- ing those ingredients. The report determines Eco-Shape to be the best choice for the environment among drinks in packages. KEY FINDINGS FROM THE STUDY INCLUDE: Water is the least environmen- tally impactful beverage option. print, followed by tap water con- sumed in reusable bottles (if used more than 10 times), and then by bottled water. • Water of all types accounts for 41% of a consumer’s total beverage consumption, but represents just 12% of a consumer’s climate change impact. • Milk, coffee, beer, wine and juice together comprise 28% of a con- sumer’s total beverage consumption, but represent 58% of climate change impact. Bottled water is the most environmentally responsible packaged drink choice. • Sports drinks, enhanced waters and soda produce nearly 50% more carbon dioxide emissions per serving than bottled water. • Juice, beer and milk produce nearly three times as many car- bon dioxide emissions per serving as bottled water. In North America, Nestl&eacute; Waters’ Eco-Shape bottled water is the most environmentally respon- sible packaged drink choice because it uses the least plastic. • 140g of greenhouse gas emis- sions are produced during the life cycle of one half-litre serving of Eco-Shape bottled water. • 160g of greenhouse gas emis- sions are produced during the life cycle of one half-litre serving of other bottled water brands (based on typical characteristics). • The life cycle of sports drinks and enhanced waters produces 250g and 260g of carbon emissions per half-litre servings, respectively. Choosing between bottled and tap water is just one of many decisions that affect the envir- onmental impact of the water that consumers drink. • Aspects such as transportation, refrigeration, dishwashing and recycling can also play a large role, as do choices among options within the bottled water category. Consumers can decrease the climate change impact of con- suming an Eco-Shape bottle by 25% if they simply recycle it. (*)The “life cycle analysis study”, avail- able at www.beveragelcafootprint.com, was commissioned by Nestl&eacute; Waters North America and conducted by Quantis International, a well-recognised leader in life cycle analyses and related applications. Bottled water shown to have lightest environmental footprint among packaged drinks Nestl&eacute; Waters North America published in early 2010 the con- Study conducted by Quantis International, a well-recognised leader in life cycle analyses.(*) Water, in all its forms, has the least environmental impact of any beverage choice. And when compared to other packaged beverages, including soft drinks, sports drinks, enhanced waters and juices, bottled water has the lightest environmental footprint. The study is believed to be the first peer-reviewed, compre- hensive analysis of the envir- onmental impact of water and alternative beverage options, including filtered and unfiltered tap water consumed from re- usable plastic, steel and aluminium containers. The analysis follows internationally accepted standards for methodology and transpar- ency in reporting all findings, inc- luding favourable and unfavourable comparisons with other beverage options. According to the report, packaging and distribution are key contribu- tors to a beverage’s carbon foot- print. In North America, for example, Nestl&eacute; Waters’ Eco- Shape bottled water has the ® smallest environmental impact among bottled beverages because the bottles use the least amount of plastic and travel a relatively short distance from source to shelf. sustainable success REACTION IS ACTION! Raising recycling rates depends on finding effective local solu- tions. The challeng in China is to trigger simple changes in con- sumer habits which can have a huge impact across the country. Nestl&eacute; Waters China launched a nationwide online campaign – promoted in supermarkets – encouraging consumers to recycle and rewarding them with gifts. In Brazil, recycling cooperatives bring environmental benefits and create jobs for poor people who depend on waste collection for a living. We teamed up with the São Lourenço municipality and a national recycling group, CEMPRE, to set up just such an initiative. The city provided ''land CEMPRE hired and trained 30 ''employees we provided collection carts and containers, and financial aid. A lakeside community in Ontario is the site for a public spaces recycling programme which we helped to set up with other consumer goods companies. By providing new bins and by build- ing awareness, we are helping to ensure that more of the packaging thrown away in public places gets recycled and not sent to landfill. << carriers and companies we are reducing empty-load return runs. • Finally, we build long-term partnerships with carriers who, like us, care about energy efficiency through their choice of fleet, and who provide EcoDriving training for their drivers. At Nestl&eacute; Waters, measuring our impact and optimising our performance are two key principles which guide our determined efforts to become more sustainable. The third element of our strategy is engaging our resources to find sustainable solutions. By this, we mean getting to grips with environmental issues which often have implications well beyond our own business. One such issue is the widespread use of PET, and dealing with PET ''waste questions which we have been addressing for years. In fact, the high visibility of discarded PET masks the fact that it represents a tiny element of total waste. Take a look at France, for example, which has one of the highest bottled water consumption rates per person in the world. In spite of this fact, bottled water accounts for just 0.8% of all household refuse, and a tiny 0.03% of the country’s total waste stream. These relatively modest figures do nothing to diminish our determination to cut down even further on PET waste, and to reuse it wherever possible. Indeed, if a PET bottle is recycled, its environmental footprint can be reduced by up to 50%. PET is made from a resin that, in turn, is made by refining oil. Recycling makes good sense because it reduces the need for crude oil and the additional energy needed to refine it into PET resin. Besides, the characteristics of PET make it one of the easiest materials to recycle and the recycled product has many end uses in different industrial sectors, from clothing and pens to recycled bottles and new containers. An empty bottle therefore presents an opportunity for a new lease of life, while reducing the total environ- mental impact of the original product. At the moment, there is not enough recycled PET to meet demand: all the more incentive to double our efforts! The excellent news is that PET is 100% recyclable, and yet, there is a great variation between countries in the collection and processing facilities that are available, and in the levels of public awareness of the importance of recycling. At Nestl&eacute; Waters, we believe that we can make the most difference by promoting effective recycling processes that are best adapted to local conditions. To this end, our initiatives are varied and widespread. In France, we co-founded the Eco- Emballages agency, whose mission, since 1992, is to organise and oversee removal of household packaging waste. Along with the bottled water industry, we contributed 50 million euros, which has helped to raise awareness and contributed to the continued increase in collection rates, so that today, 50% of the country’s PET waste is recycled. In Germany, we are proud to be part of the DSD (Duales System Deutschland) – a partnership of companies which encourages recycling. The picture is different in the United States, where fewer than 50% of citizens have access to kerbside recycling collection schemes. Our response there has been to join forces with a variety of stakeholders to put in place a closed loop recycling system. We also play an active role through the American Beverage Association which represents hundreds of beverage producers, and is committed to helping national recycling efforts. In addition, working with public authorities in Canada, we have placed bins in outdoor public places in Quebec, to help develop the on-the-go sorting capacity. Everywhere, the consumer’s attitude is essential if we are to be successful in increasing recycling and in meeting the growing demands for recycled PET. By placing prominent messages on our packaging we are helping to build awareness and urging our consumers to play their part. Of course, while actively promoting recycling, Nestl&eacute; Waters is also continuously looking into alternative packaging that can match PET’s qualities in the future. Our technical experts at the PTC in Vittel are busy evaluating innovative solutions, such as bio-based plastics from renewable sources. It seems that these have great potential but important issues are yet to be resolved if they are to become viable on an industrial scale. Product quality, reliable supply chains of raw materials, environmental impact and pricing all need careful consideration. In the meantime, we continue to use PET, with all its consumer-related advantages, while working on minimising the environ- mental impact of our packaging in terms of light-weighting and recycling. << 43 << However successful our environmental performance is today, we want it to be more successful tomorrow. To turn this objective into a reality we are building partnerships and finding innovative solutions to create a more sustainable world for everyone. This is why we are determined to carry on measuring our impact, optimising our performance and engaging in new commitments - notably as we have seen in recycling and bioplastics - to forge a greener future. (1)The US Green Building Council is a coalition of building industry leaders focused on encouraging the construction of environmentally responsible buildings. The council has created the LEED Green Building Rating System, a third-party certification programme and the U.S. recognised standard for the design, construction and operation of high-performing green buildings. sustainable success 44 REACH OUT AND TEACH! Water education has never been more crucial than it is today, which is why Nestl&eacute; Waters has decided to be the leading finan- cial sponsor of the award-winning non-profit organisation, Project WET. Since its inception in 1984, the mission of Project WET has been to reach out to children, teachers, parents and whole communities to teach them about water education. Project WET pursues this goal by sponsoring materials in different languages, running training work- shops, organising events and building a network of educators in more than 40 countries on all continents. We help by providing tools and training, notably in the field of water care, and we sponsor WET’s international development – running workshops, and produ- cing communication materials. We also support new initiatives, such as a hydration campaign about to be launched to build awareness in young people – explaining the role of water in promoting health, and showing what children themselves can do to make simple choices for a healthier lifestyle. LEADING THE PACK One of the reasons why we can help to build a better future, turning innovative ideas into day- to-day reality, is because we can count on the expertise of our Product Technology Centre Water in Vittel. Here, our R&D teams have de- veloped core competences in packaging materials and barriers, pack design and performance, blow-moulding and water filling. We also have extensive know- how in water mineralisation and product formulation. What is more, PTC facilities enable us to simu- late all stages of the bottled water business, which means we can test the impact of any change – be it in packaging, product or process. The PTC is central to our search for alternative materials whose environmental impact is less than it is for PET. For this, we have set up a new group working on “Packaging Materials & Sustain- ability” in the PTC, and are co- funding a Chair in Bioplastics at the prestigious École des Mines de Paris, which will support a research programme to study polymers derived from renew- able resources, along with their industrial application. Nestl&eacute; Waters North America launches new re-source brand using 25% recycled plastic bottles sustainable success 45 Nestl&eacute; Waters believes that the long- term success of our business depends on our ability to bring sustainable benefits not only to our shareholders, but also to the communities in which we are present. This is more than our corporate culture and more than benevolent philanthropy. It is increasingly what aware communities expect from leading ''corporations it is a shared vision, and it determines our approach and our actions throughout the whole Nestl&eacute; group. We call it Creating Shared Value. In practice, this means doing more than legislation requires. It also means doing more than acting responsibly in relation to the resources we use to ensure a sustainable business. It implies wholehearted commitment to additional, voluntary actions which show that what is good for business is also beneficial to society. Our notion of success includes the value that our activities create for the local opportunities. communities we work in, worldwide. When we build a new plant, we are providing a catalyst for social and economic development – particularly in rural areas – and the benefits are likely to be more lasting than government- funded or charitable initiatives. Of course, at Nestl&eacute; Waters, we are most effective in creating shared value in areas which are linked to our core business strategies. This is why our contribution to society is most pronounced in bringing the benefits of healthy hydration, water-care management and good neighbourhood to local communities. By promoting the fact that we are the world’s leading healthy hydration company, we increase awareness of the vital importance of healthy hydration, and << A WINNING APPROACH Water Resources Management is nothing new at Nestl&eacute; Waters, but sharing our experiences outside the company is a more recent development, as we realise the broader benefits in showing others how we work. Our more open approach has won recognition. In 2009, our corpor- ate hydrogeologist won an award for the article he presented to the fifth International Conference on Water Resources Management, in Malta. Organised by the Wessex Institute of Technology – a research centre dedicated to advancing knowledge transfer – the conference drew engineers, scientists and other professionals concerned with water management. The jury was impressed by our corporate hydrogeologist’s presentation of concepts, monitoring, technical specifications and protective measures. A major advantage of the award is that word of Nestl&eacute; Waters' good practice and innovations will spread further – notably in the scientific sphere, via publi- cation of the article in academic journals, and new conference Sharing success with society sustainable success 46 LENDING NATURE A HELPING HAND “Nature’s gift to mankind” is the apt slogan of Korpi, our local brand in Greece, but when fires ravaged the Penteliko Mountain near Athens, Nestl&eacute; Waters Hellas lost no time in getting involved to aid nature’s recovery. Demonstrating our commitment to the environment and the local communities where we operate, we were one of the main sponsors of a vast reforestation plan, which culminated in December 2009 in the biggest tree planting oper- ation ever seen in Greece. We distributed 5,000 bottles of Korpi to help keep several thousand volunteers cool and hydrated as they planted 57,000 saplings over an area of 1,000 acres. Our own employees joined this massive task force, made up of schools, locals, families and companies from 23 communities. This was one of three similar replanting events which we supported around Athens during the year, and which will restore much needed green spaces and forest as a precious source of oxygen in this densely populated area. << offer practical solutions. That, in around our sources. Good business itself, is of real value in contributing to practice is intertwined with environmental healthier communities. In addition, conservation. In countries as different as through sponsorship and partnerships, France, the United States and Brazil, we we support clinical trials and publications work with local authorities, communities, which contribute to a better understanding farmers and schools on finding solutions of the role of hydration in health. which preserve the quality of water Nestl&eacute; Waters does this at many levels. community life. While our scientists conduct research that contributes to the growing body of Nestl&eacute; Waters Brazil has been working scientific knowledge on hydration, our with local stakeholders in the south- information leaflets – distributed to eastern community of São Lourenço – doctors, patients and consumers – give where we produce our São Lourenço clear and visual explanations about the bottled mineral water – to take stock role of water in keeping the body healthy. of a number of concerns which centred Through quizzes and hydration games, we on the poor state of the city’s Water Park deliver the key messages in a fun way. and exploitation of its source. Regular We also sponsor the non-profit on our part have led to a major renovation educational programme Project WET to of the park, and replenishment of the bring water education to children, aquifer. parents, teachers and whole communities around the world. The importance of Our support for Project WET helps to healthy hydration is one of Project WETs provide educational materials, encourage new campaign areas, extending the broad activities and support events which range of existing topics which focus on teach the next generation why water issues such as water quality, conservation and care matters. conservation, sanitation and hygiene. Nowhere is the value of safe drinking development of communities where we water more appreciated than when it is operate helps to build trust among local suddenly not available. When natural stakeholders. A Nestl&eacute; Waters’ plant disasters strike, or water supplies are means jobs for local people, revenue for contaminated, we step in wherever we local services and new business for local can to help, donating bottled water and suppliers. On top of this, there are other supporting relief agencies to make sure ways in which we help to improve daily life. that water reaches the people who need The new “Bubbles Bridge” built by it most. Sanpellegrino with the cooperation of local Sustainable water resource management circulation in the Brembo Valley and reduce is crucial to our business, and equally traffic density in residential areas around vital to society. By sharing the experience our Ruspino plant. Where we create shared we have developed over decades in this value, we can help people to feel good and area, we are helping to keep a watchful be part of sustainable growth, and that all eye on freshwater quality and biodiversity makes for a good neighbourhood. resources and enhance the quality of meetings and a series of concrete actions Contributing to the social and economic authorities will help improve traffic • 48 EXECUTIVE COMMITTEE 50 KEY FIGURES 52 A YEAR REVIEW IN IMAGES 55 OUR BRANDS 2009 facts & figures 47 executive committee 48 2 5 3 8 4 10 5 12 13 6 1 JOHN J. HARRIS (1) Chairman & CEO Nestl&eacute; Waters since 2007 American, born in 1951 STEFANO AGOSTINI (2) GILLIAN ANANTHARAMAN (3) President & CEO Vice-President Sanpellegrino S.p.A. Research & Development since 2007 since 2007 Italian, born in 1964 British, born in 1960 STEVE BENDIX (4) ROBERTO CANEVARI (5) Senior Vice-President Senior Vice-President Technical, Water Resources Corporate Supply Chain & Environment & Procurement since 2007 since 2007 American, born in 1959 Italian, born in 1966 DENIS CANS (6) CEO Nestl&eacute; Waters France and Belgium since 2007 French, born in 1951 executive committee 49 9 10 8 11 10 12 13 13 14 7 8 PHILIPPE MATHOULIN (11) WOLFGANG W. PASEWALD (12) Senior Vice-President Senior Vice-President Human Resources European Markets since 2003 since 2004 French, born in 1955 Austrian, born in 1958 MAURIZIO PATARNELLO (13) ALAIN RANDON (14) Senior Vice-President Senior Vice-President Zone Asia Oceania Africa Finance & Control since 2008 since 1992 Italian, born in 1966 French, born in 1947 HUBERT GENIEYS (7) Senior Vice-President Corporate Communication and Sponsoring since 2009 French, born in 1961 KIM JEFFERY (8) President & CEO Nestl&eacute; Waters North America since 1992 American, born in 1948 HENRIK JELERT (9) Regional Business Head Nestl&eacute; Waters Direct Zone Europe since 2008 Danish, born in 1964 PATRICK LEMOINE (10) Senior Vice-President Zone Latin America since 2008 French, born in 1954 Our Mission 2009 It’s crystal clear: we aim to be the leading Being the world’s leading bottled water healthy hydration company. That means that our strategy is driven by a commit- ment to leadership in achieving two insep- arable objectives: • To offer consumers quality, reliable products which provide a healthy way to meet their daily hydration ''needs • To fully assume our corporate social and environmental responsibilities. company provides solid foundations to achieve this mission: the unmatched diversity of our portfolio of 64 ''brands our local strength and global presence in 130 ''markets our acknowledged expert- ise and capacity for ongoing innovation in response to consumers’ changing lifes- tyles and ''desires our determined efforts to constantly reduce our environmental footprint, and the drive and loyalty of our 30,260 employees around the world. Key figures THE NUMBER ONE BOTTLED WATER COMPANY WORLDWIDE (1) SALES CHF 9 061 million (EUR 5 995 million) ORGANIC GROWTH -1.4% RIG (2) -1.5% CEBIT (3) CHF 632 million (EUR 418 million) 8.4% of Nestl&eacute; Group sales MARKET SHARE 17.1% (4) EMPLOYEES 30,260 PRODUCTION FACILITIES 97 PRODUCING COUNTRIES 36 BRANDS 64 (1)based on the global market in value (2)RIG: Real Internal Growth (3)CEBIT: Consolidated Earnings Before Interest and Tax (4)estimation in value 2009 facts & figures 50 2009 facts & figures 51 2009 ENVIRONMENTAL INDICATORS ENERGY: -22% Nestl&eacute; Waters reduced energy consumption per litre produced by 22% in its fac- tories between 2004 and 2009. PACKAGING: -24% Nestl&eacute; Waters reduced packaging weight per litre produced by 24% between 2004 and 2009. WATER: -38% With 0.68 litres of additional water used to produce 1 litre in 2009, Nestl&eacute; Waters has reduced its water use ratio by 38% in its factories since 2004. 2009 Sales analysis NORTH AMERICA: 49.1% EUROPE: 39.2% ASIA OCEANIA AFRICA: 8.5% LATIN AMERICA: 3.2% BREAKDOWN BY GEOGRAPHIC ZONE RETAIL: 87% HOD: 13% BREAKDOWN BY DISTRIBUTION CHANNEL LOCAL: 59% INTERNATIONAL: 21% NESTLÉ: 20% BREAKDOWN BY BRAND 2009 facts & figures 52 JANUARY Nestl&eacute; Waters rolls out its Global Environmental Footprint tool in all its markets Unique and innovative, the GEF tool is designed to evaluate the main environmental impact categories of the group’s activity throughout production and distribution processes. United States - Nestl&eacute; Pure Life rises to the top! Despite widespread economic challenges and unpreced- ented category declines, Nestl&eacute; Pure Life continues its remarkable growth, and the brand now stands alone atop the United States bottled water segment. FEBRUARY Nestl&eacute; Pure Life signs partnership with famous nutrition and fitness expert in the United States The Nestl&eacute; brand partners with Bob Greene’s Best Life programme – highly regarded among nutritionists because of its motivational and honest approach to nutrition and exercise. MARCH Daily hydration and wellness celebrated in Italian bookstores Released in Italy, the Atlas of Mineral Waters is designed to promote mineral water as a fundamental element of daily hydration and wellness. APRIL Perrier refreshes the world with a new international advertising campaign Perrier opens a new chapter of its worldwide advertising story with a brand new 50-second commercial named “Melting” that reinforces Perrier’s mystical and original image. MAY Project WET debuts in Thailand Thailand becomes the 13 country to implement Project th WET (Water Education for Teachers), an international, scientific and educational programme designed and owned by a U.S.-based non-profit organisation. With the support of Nestl&eacute; Waters on an international scale, the programme helps to train teachers to educate the world’s children on the importance of water and how it needs to be protected. A year review in images 2009 facts & figures 53 JUNE SEPTEMBER Nestl&eacute; Waters North America launches new re-source brand using 25% recycled plastic bottles Nestl&eacute; Waters North America teamed up with a natural and organic foods retailer, a leading waste management company and an environmental consulting firm to design a new premium brand of spring water called re-source that uses 25% rPET in all its bottles. Sold exclusively at Whole Foods Market stores, re-source aims to engage consumers in the importance of recycling. OCTOBER La Vie in the top ten leading Vietnamese trademarks The Vietnam Union of Science and Technology Association, the country’s only official body authorised to deliver consumer brand assessments, selects La Vie as one of the top ten leading Vietnamese trademarks. NOVEMBER Poland Spring helps recycle ® at the ING New York Marathon Poland Spring natural spring water returns to add to the excitement for runners and fans during the 40 ING New th York City Marathon. This year again, Poland Spring launched initiatives towards recycling and the environment. DECEMBER Nestl&eacute; Waters North America continues plastic reduction efforts with a new lighter bottle Nestl&eacute; Waters North America announces its next-generation Nestl&eacute; Waters Brazil helps fight unemployment Eco-Shape bottle, the company’s latest step in an ongoing ® commitment to reduce plastic consumption across its brand portfolio. Weighing 9.3g on average, this bottle contains 60% less plastic than the company’s original, pre-Eco-Shape 0.5-litre PET bottle, first introduced in the mid-1990s. Nestl&eacute; Waters North America celebrates its first Gold LEED-certified plant The Nestl&eacute; Pure Life bottling plant in Breinigsville, Pennsylvania, achieves the Gold LEED certification that recognises environmentally sound buildings. In the United States, Nestl&eacute; Waters North America is the bever- age company with the most LEED-certified plants, with the Nestl&eacute; Pure Life plant as the first of its factories to achieve the certification’s gold level. JULY Vittel's Tour de France hits the road! For the second year running, Vittel is a major partner of the Tour de France. As the world’s most prestigious cycling race passes through the brand’s birthplace, Nestl&eacute; Waters signs a new agreement with the Tour de France, extending Nestl&eacute; Waters status as main co- partner for four more years. A new HOD factory in Portugal Nestl&eacute; Waters Direct in Portugal inaugurates its new HOD factory located close to Lisbon and Porto, the country’s two largest water consumption centres, and launches its new brand, Nestl&eacute; Selda Pura Vida. The new factory will produce large bottles (11 and 18.9 litres) and create 50 new jobs, both directly and indirectly. AUGUST and increase recycling through NGO partnership Nestl&eacute; Waters Brazil partners a nationwide non- governmental organisation (NGO) that supports the country’s waste collection cooperatives. These co-ops help fight unemployment by providing jobs for people in precarious situations, and help increase the country’s recycling rates. Switzerland to extend Henniez water resources preservation area Nestl&eacute; Waters Switzerland announces the launch of an environmental partnership project aimed at long-term protection of the Henniez brand water resources. Today, the Domaine d’Henniez covers almost 100 hectares around the Henniez springs. Through this project, Nestl&eacute; Waters Switzerland plans to create a partnership protection zone that would extend the preserved area to 400 hectares within several years. 54 our brands Choose from our brands bottled with care around the world We offer the consumer an unrivalled range of complementary, healthy choices for daily hydration. The key to global and local success is our three-tier portfolio of brands: • Prestigious international brands are the distinguished ambassadors of our global ''image • Daily hydration brands include our flagship Nestl&eacute; brand and more than 50 core local references that are highly popular in their countries of ''origin • Functional brands whose added value lies in high levels of certain minerals or nutrients with specific health benefits. our brands 55 ALGERIA LEBANON Nestl&eacute; Vie Pure ARGENTINA Eco de los Andes Glaciar Nestl&eacute; Pure Life Henniez BAHRAIN Al Manhal NIGERIA BELGIUM Charmoise Nestl&eacute; Aquarel Valvert BRAZIL Nestl&eacute; Aquarel Petrópolis Naleczowianka Santa Barbara São Lourenço CANADA Montclair Nestl&eacute; Pure Life CHILE Nestl&eacute; Pure Life Cachantun** Porvenir** CHINA Nestl&eacute; Pure Life Deep Spring CUBA Ciego Montero Los Portales EGYPT Baraka Nestl&eacute; Pure Life FRANCE Carola Contrex* Nestl&eacute; Pure Life Nestl&eacute; Aquarel H&eacute;par San Narciso Nestl&eacute; Aquarel Perrier* Planco&euml;t Qu&eacute;zac Saint-Lambert Sainte-Alix Vittel* GERMANY Frische Brise F&uuml;rst Bismarck Klosterquelle Nestl&eacute; Aquarel Nestl&eacute; Wellness Neuselters GREECE Aqua Spring Korpi HUNGARY Nestl&eacute; Aquarel Theodora INDONESIA Nestl&eacute; Pure Life IRAN Nestl&eacute; Pure Life ITALY Acqua Panna* Levissima Nestl&eacute; Vera Pejo Recoaro S. Bernardo S.Pellegrino* JORDAN Ghadeer Nestl&eacute; Pure Life Sohat MEXICO Nestl&eacute; Pure Life Santa Maria Nestl&eacute; Pure Life PAKISTAN Nestl&eacute; Pure Life POLAND Dar Natury Nestl&eacute; Aquarel PORTUGAL Nestl&eacute; Selda QATAR Al Manhal RUSSIA Nestl&eacute; Pure Life SAUDI ARABIA Al Manhal Nestl&eacute; Pure Life Springs SOUTH AFRICA Nestl&eacute; Pure Life SOUTH KOREA Water Line SPAIN Viladrau SWITZERLAND Cristalp THAILAND Min&eacute;r&eacute; Nestl&eacute; Pure Life TURKEY Erikli Nestl&eacute; Pure Life UNITED ARAB EMIRATES Nestl&eacute; Pure Life UNITED KINGDOM Buxton Nestl&eacute; Pure Life UNITED STATES Arrowhead Calistoga Deer Park Ice Mountain Nestl&eacute; Pure Life Ozarka Poland Spring Zephyrhills UZBEKISTAN Nestl&eacute; Pure Life VIETNAM La Vie *Distributed internationally **The brand is owned by ‘CCU-Nestl&eacute; Aguas’ joint-venture 56 Published by Nestl&eacute; Waters Corporate Communication Department Layout & design: Agence Pennel Text: Agence Pennel / Nicole Contencin / Agn&egrave;s Richard / S&eacute;mantis Photography Back cover: Sandrine Alouf (Levissima source) P. 32: BBDO (Erikli) / Lowe (Glaciar) / Mc Cann (Poland Spring) / Ogilvy (La Vie) / Ogilvy (Perrier) / Publicis (Baraka) / Publicis (Levissima) / Publicis (NPL Global) Sandrine Alouf / Gr&eacute;goire Avenel / Fran Collin / Augustin Detienne / FEP / Fotolia / Jacques G&eacute;rard / Getty Images / Philippe Gontier / GraphicObsession / Mikkolo / Nestl&eacute; Hellas / Nestl&eacute; Waters Brasil / Nestl&eacute; Waters China / Nestl&eacute; Waters Direct - Zone Europe / Nestl&eacute; Waters France / Nestl&eacute; Waters France (Agrivair) / Nestl&eacute; Waters Italy / Nestl&eacute; Waters Marketing & Distribution / Nestl&eacute; Waters North America / Nestl&eacute; Waters UK / Ogilvy / Laurent Parrault / Agence Pennel / Publicis / Michele Tabozzi (Courtesy of Sanpellegrino) This report is printed on coated, wood-free paper which is 100% recyclable, fully biodegradable, and made from pulp bleached without chlorine at production sites certified under ISO 9001 (quality), ISO 14001, EMAS (environment) and BGW36 (suitable for contact with dried and oil-free foodstuffs). This paper contains no heavy metals (less than 100ppm). Wood used for the manufacture of the paper pulp comes from sustainably managed forests and plantations. This document may not be reproduced in whole or in part in any form without prior permission from Nestl&eacute; Waters. CorporateCommunication@waters.nestle.com ®Nestl&eacute; Waters, May 2010 WATERS2010