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Nestlé Waters acquires an important Mineral Water spring in Rio de Janeiro

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Nestlé Waters acquires an important Mineral Water
spring in Rio de Janeiro

Vale do Sol is located in the city of Silva Jardim, in a preserved and protected area,
warranting water purity and a strong expansion of the business in the State

Rio de Janeiro, February 28, 2013 – Nestlé Waters has announced today the acquisition of the Mineral water spring Vale do Sol and its assets, located in the city of Silva Jardim, in the Lake Region, 110 km from the city of Rio de Janeiro. This project involves the total investment of R$ 117 million, which will warrant the sustainability and growth of Nestlé’s water business in the Brazilian market, specially in the State of Rio de Janeiro where it already owns Água Mineral Petrópolis.

Vale do Sol is located in 300 hectares, surrounded by 1,100 preserved hectares in an area of environmental protection, warranting pure water of the highest quality. The new unit that should start its operations in July will generate 100 direct jobs and almost 800 indirect jobs. The Mineral water will be bottled in small packages, starting at 300 ml, still and sparkling, in addition to 10l and 20l HOD (Home & Office Delivery) bottles.

"This acquisition will consolidate our leading position in major supermarket chains in Rio de Janeiro where our share is 30%, and boost our growth in one of the main poles of the water market in Brazil", states Alexandre Carreteiro, Nestlé Waters Country Business Manager in Brazil. The new unit will supply the State of Rio de Janeiro, as well the States of Espírito Santo and Minas Gerais.

John J. Harris, Nestlé Waters Global CEO, considers Brazil as a strategic country for Nestlé Waters growth. "This investment in Rio de Janeiro reaffirms our confidence in growth potential of the bottled water category in Brasil. The obesity growing concern associated with low bottled water level consumption should create sustainable growth opportunity for us. This acquisition should allow us to accelerate our Nestle brand development in the critical state of Rio de Janeiro".

According to Sérgio Cabral, Governor of the State of Rio de Janeiro, Nestlé’s investment will leverage Rio de Janeiro’s economic development: "The opening of a second spring water factory will permit this market to be supplied more efficiently. The increasing presence of Nestlé brands is a clear demonstration of the company's trust in our State."

Nestlé Waters’ new investment in Rio de Janeiro reinforces the historic relationship established with the state in 1992 when it acquired Água Mineral Petrópolis with the Perrier acquisition. Petropolis is Rio de Janeiro’s traditional water brand for over 60 years. Recently, the company made the largest marketing investment in the history of Petrópolis brand with a relaxed campaign for TV and social medias highlighting the concept "There is always a fun way to stay in shape. Petrópolis: your partner to stay in shape".

Considering bottle technology, in the end of 2012 the company launched the lightest PET bottle in the market for Petrópolis and Pureza Vital lines, reducing the plastic content by 20% without compromising the quality. With a modern design, the bottle holds its shape firmly and contributes to the recycling process. Another innovation is the logotype engraved in Braille to help the visually impaired identify the product.

The water segment has grown consistently in Brazil in the last four years, and has increased 14% in value and 5% in volume in the 2012, boosted mainly by consumers’ tendency to seek healthy beverages in their daily lives. And the State of Rio de Janeiro is above the national average, with 19% (value) and 7% (volume) growth.

In order to guaranty the presence of its brands in the Southeast and in the States of Paraná and Bahia, similarly important consumption poles of small-format bottled waters (less than 20l), Nestlé Waters has entered into a distribution agreement with Ambev for the bar, grocery store, bakery, wine bar, and small and medium supermarket channels in such areas. Vale do Sol bottled waters will also be part of the distribution network that should also contribute to boost sales

About Nestlé Waters – Nestlé Waters, the water division of the Nestlé Group, is the leading global bottled water company. It has five plants in Brazil located in the states of Rio de Janeiro,

São Paulo and Minas Gerais. Nestlé Pureza Vital is the global brand leader in volume, combining Nestlé’s quality expertise with a pure and light water for the whole family. Nestlé’s Petrópolis spring water has over 50 years of existence and is a strong household brand for Rio de Janeiro’s consumers. The product, available in 510ml and 1.5l bottles, is distributed mainly in the state and its packaging honors the beautiful nature of the city of Petrópolis with its mountains and waterfalls. On the other hand, São Lourenço is a spring water with unique characteristics, because it is naturally sparkling. It is also marketed in the still version. Nestlé Waters further markets in Brazil the imported water brands S. Pellegrino and Acqua Panna (both Italian) and the French water, Perrier.

Nestlé Brasil Press Relations

Claudia Galli – (11) 5508-9396 – [email protected]
Rafael Ribella – (11) 5508-1631 – [email protected]
Mariana Lemos – (11) 5508-9737 – [email protected]
Anahi Guedes – (11) 5508-9395 – [email protected]

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