14 January 2008 – A French tribunal last week ruled in favour of the French town of Vergèze and against Nestle in a dispute concerning the Swiss food giant's Perrier brand, French media report.
In 2004, Peter Brabeck, Nestle CEO, hinted at the possibility of moving the production of Perrier sparkling water away from Vergèze. The parish council of this small French town of 3,900 inhabitants took the menace so seriously that in 2006 its members changed the name of the Perrier spring to “Perrier-Les Bouillens”, uniting the name of the spring to the place where it is located and effectively preventing Perrier water to be produced anywhere else in the world.
Nestle took its case to the French courts but was first denied satisfaction in December 2006 and a second time last week.
Nestle claims that the new name threatens the integrity of its Perrier brand, could limit its diversification and expansion opportunities – Nestle wouldn’t be able to produce Perrier still water for example - and restrict its supply. It is therefore likely that Nestle will appeal the decision.
Perrier has been in Nestle Waters’ ownership since 1992.