The multinational giant continued to use obsolete bottling plants, which contaminated the water (with high risks for the health of citizens)
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@Nestlé/Canva
New fraud allegations have surfaced against Nestlé, the food industry giant, following a recently released investigative report by the French publication Médiapart.
The investigation revealed that the multinational company allegedly sold over 18 billion bottles of water under the brands Contrex, Hépar, and Vittel, with quality levels equivalent to tap water.
These products were sold at prices up to a hundred times higher than regular tap water, leading to an estimated fraud amount of approximately $3.3 billion USD over a period of 15 years.
The scandal
The scandal broke in November 2020 when an employee of the group Cristaline reported to the Directorate-General for Competition, Consumer Affairs and Fraud Prevention (DGCCRF) that Nestlé was using non-compliant treatments for water marketed as “natural mineral water”.
This report triggered investigations by the National Investigation Service (SNE) of the DGCCRF and the General Inspectorate of Social Affairs (Igas), which uncovered a shocking reality.
Nearly 30% of bottled water producers in the French market, including Nestlé, were using prohibited purification techniques for natural mineral waters.
Essentially, Nestlé had illegally filtered water and continued to sell it as “natural mineral water,” making this a clear case of food fraud.
The investigations confirmed that between January 2020 and March 2022, several of Nestlé’s water sources were contaminated with pathogens and heterotrophic bacteria, exceeding legal limits by up to 85%, thus posing a serious risk to consumers’ health.
The presence of pathogens was attributed to the use of treatment devices on basins with microbial contamination, potentially used knowingly as far back as the 1990s.
The fraud charges could result in penalties of up to three years in prison and fines of up to 10% of the company’s average annual turnover, which could amount to €20 million (around $22 million USD) for Nestlé.
Meanwhile, the environmental damage due to excessive water resource exploitation and other potential health risks to consumers have yet to be quantified.
Nestlé’s troubled past
sThis new scandal is part of a broader context of controversies surrounding Nestlé. In the past, the multinational has been involved in numerous scandals, including the contaminated powdered milk scandal of the 1970s and 1980s, and accusations of water resource exploitation in various countries, raising environmental and social concerns.
The current revelations highlight the need for greater transparency and accountability from large multinational companies in the food and beverage sector.
Future developments in this case could significantly impact Nestlé’s reputation and the industry at large.
Source: Foodwatch