Turkey: Nestlé Waters and Erikli joining forces

All press releasesAug 3, 2006

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NESTLE WATERS AND ERIKLI ARE JOINING FORCES WITHIN THE FRAMEWORK OF A COMMON COMPANY UNDER THE CONTROL OF NESTLE WATERS, CONFIRMING THEIR LEADERSHIP OF THE BOTTLED WATER MARKET IN TURKEY



- NESTLÉ WATERS is merging with ERIKLI, leader on the Turkish bottled water market.

- Through this partnership, NESTLÉ WATERS boosts its leadership in a country, counting 72 million inhabitants, with good growth prospects, and acquires the leading premium brand in the market.

Issy-les-Moulineaux, France: 3rd August 2006

    NESTLÉ WATERS announced today a merger of its local activities with the Turkish number one in bottled water: ERIKLI, which posted almost US$ 55 million in sales in 2005.

    The company was created in the mid-Sixties by the ASLANOBA family, and has three production sites close to the city of Bursa in north-western Turkey near Istanbul. ERIKLI has its own means of distribution, enabling it to ensure that its products are present in the country's two main distribution networks: retail and home and office delivery (HOD). Erikli counts over 600 employees, 2/3 in production and 1/3 in distribution. ERIKLI is a natural spring water with a premium positioning. It is leader in both distribution networks.

    The Turkish bottled water market currently represents almost 7 billion litres, and annual consumption per capita stands at over 90 litres. It consistently posts dynamic double-digit growth, and should reach 10 billion litres within the next five years. The dynamics of the market is explained by the changes in lifestyle and consumer expectations, which have driven growth in average living standards for the local population. HOD accounts for 80% of the market, and retail the remaining 20%.

    NESTLÉ WATERS entered the market in March 2001, when it signed an agreement with the Turkish Group SANKO. In the following months, NESTLÉ WATERS introduced its international brand NESTLÉ PURE LIFE, currently n°3 on the market. NESTLÉ WATERS posts sales of US$ 30 million in Turkey, where it has two production sites located in BURSA and SAPANCA-KURTOY, in the north-west of the country. NESTLÉ WATERS employs more than 170 local staff.  

    The deal between ERIKLI and NESTLÉ WATERS in Turkey consists in an alliance with reciprocal shareholdings, leading to the creation of a common company combining the operations of both local companies. NESTLÉ WATERS will own a 60% stake. Mr Hasan ASLANOBA, current President of the ERIKLI company, will own the remaining 40% and will be appointed CEO of the new entity. The deal remains subject to the approval of the Turkish competition authorities, however, who are expected to reach their decision in the coming weeks.

    According to Carlo DONATI, Chairman and CEO of NESTLÉ WATERS, "This deal with the leading bottled water company in Turkey represents a real opportunity for NESTLÉ WATERS to create a sustainable and significant boost to its position in a market with excellent growth potential. At the boundary of two key regions for the Group―Europe and the Middle East―this acquisition in Turkey provides a perfect illustration of our growth strategy. It reinforces our local distribution, offers interesting synergies, promotes the growth of our international brand NESTLÉ PURE LIFE, and allows us to establish a leading market position, whilst gaining a strong brand, ERIKLI, without diluting our performance."

    The NESTLÉ WATERS Group is a global player in the bottled water market, leader notably in Europe and also the Middle East, present in 130 countries around the world, with a portfolio of 75 brands (sold in all types of packaging in every distribution channel). NESTLÉ WATERS, Water Division of the NESTLÉ Group, posted sales of €5.7 billion in 2005.

    NESTLÉ WATERS holds the Number 1 global position in the bottled water market, both in terms of value, with 18% market share, and in terms of volume.

For all information :

Press contact Hubert Genieys / Nestlé Waters External Communications
Tel. +33 (0)1 41 23 68 46
Fax +33 (0)1 41 23 37 67
email press-contact@waters.nestle.com
Web site www.press.nestle-waters.com

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