Home / Nestle News: Earnings, Investments, & Latest Developments

Nestle News: Earnings, Investments, & Latest Developments

By: Jasmin Espinas
May 9, 2025

Nestle is one of the world’s largest food companies, known for brands like Nescafé, KitKat, and Gerber. In recent Nestle news, the company has brought in Rothschild to advise on changes to its water division.

At the same time, Nestle is facing pressure on several fronts—from government orders in France to internal efforts to cut costs. It’s also increasing its marketing and growing its presence in markets like Vietnam.

Here’s a look at the latest updates, including financial results and new brand deals.

Latest Nestle News: Nestle Hired Rothschild for Its Water Division

Nestle has hired Rothschild to advise on a possible sale of its water division later this year, according to sources who spoke with Reuters. This move signals Nestle’s push to focus more on its larger global brands.

Back in November, the company announced plans to spin off its water business into a separate unit starting January 1. At the time, Nestle said it was open to deals or partnerships involving the division, which has struggled with production capacity.

Nestle still plans to keep a share of the business, which includes well-known brands like Perrier and S.Pellegrino. People familiar with the talks say the unit could be worth more than €5 billion (roughly $5.6 billion).

So far, several private equity firms have shown interest. These include Platinum Equity, Blackstone, One Rock Capital Partners, PAI Partners, and Clayton, Dubilier & Rice (CD&R). Discussions are still in the early stages, with a formal process expected to begin later this year. Even so, a final deal is not guaranteed.

For now, Nestle, Rothschild, and the other firms involved have declined to comment.

Global Nestle News: French Authorities Order Removal of Nestle System Filters

French officials have told Nestle to take out specific filters used at two of its bottled water sites in France. These filters are part of the production process for brands like Perrier, Contrex, Vittel, and Hépar.

On May 7, the local government in Gard ordered Nestle to stop using 0.2-micron filters at its Perrier plant in Vergèze. The company has two months to remove them. Authorities in Vosges gave the same order for Nestle’s plant, which produces Vittel, Contrex, and Hépar.

Nestle responded by saying it’s working on solutions and plans to meet the deadline. The company shared that it already found a fix for the Vosges site, but it still needs approval from the local authorities.

Last month, Nestle’s CEO Laurent Freixe told French lawmakers that the company would begin an internal review of its water operations in France.

Nestle Plans to Trim Costs by $2.8 Billion Under Freixe’s Leadership

In November 2024, Nestle shared a new plan to cut costs by at least $2.8 billion by 2027 while increasing its investment in advertising and marketing. The goal is to support growth and improve performance under its new CEO, Laurent Freixe.

Freixe stepped in last September after Mark Schneider was removed from the role. Schneider had been under pressure after several quarters of weak sales. During his time as CEO, Nestle reduced spending on advertising and slowed product development, especially during the pandemic.

Now, the company is taking a different approach. Nestle plans to spend 9% of its total sales on marketing by 2025—the highest level since 2019. At the same time, it aims to cut at least 2.5 billion Swiss francs (around $2.83 billion) in costs by 2027, plus continue with earlier savings of around 1.2 billion francs.

Nestle also confirmed it will create a separate global unit for its water and premium drinks businesses starting January 1, 2025.

“Our action plan will also improve the way we operate, making us more efficient, responsive and agile. This will allow us to deliver value for all our stakeholders,” Freixe said in a statement.

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Q1 2025 Results: Nestle Reported a Revenue Increase Amidst Price Hikes

Nestle reported 2.8% sales growth for the first quarter of 2025, which was better than expected. Most of this growth came from higher prices across its products.

The company admitted that raising prices had caused a drop in demand earlier, but said sales are starting to recover. Nestle also warned that rising global tariffs could put more pressure on both shoppers and its business.

During the quarter, Nestle continued to push forward with its cost-cutting plan called “Fuel for Growth.” The savings helped the company reinvest in its core business and support new product launches, like Nescafé Espresso Concentrate. Some of its underperforming units also showed early signs of improvement.

The company said it’s still making internal changes to stay more focused and better organized, especially in Europe. This includes updates to its structure and more investments in research and development.

Overall, Nestle’s performance met its own expectations, and its forecast for the rest of 2025 hasn’t changed. But it did note that some outside factors, such as currency shifts, raw material costs, and how customers react to tariffs, remain uncertain.

Additional Investment In the Expansion of the Tri An Plant In Vietnam

Nestle is adding $75 million to expand its Tri An factory in Dong Nai, Vietnam. This brings the company’s total investment at the site to $175 million for 2024 and 2025.

The announcement came during a ceremony marking Nestle’s 30 years in Vietnam. With this new funding, Nestle’s overall investment in the country will reach around $904 million.

Nestle Vietnam’s CEO, Binu Jacob, said the move reflects the company’s confidence in the area’s long-term growth. The Tri An plant is already one of Nestle’s largest and most advanced production sites. It ships products like Starbucks, Nescafé, and Nescafé Dolce Gusto to over 29 countries.

Jacob also shared on LinkedIn that Nestle’s story in Vietnam is built on strong partnerships and shared progress. He added that the company wants to continue contributing to the country’s future by supporting health, growth, and sustainability.

KitKat Is the Official Chocolate Bar of Formula 1 for Its 75th Anniversary

In November 2024, Nestle and Formula 1 announced a new multi-year partnership. KitKat is now the official chocolate bar of Formula 1.

This is Nestle’s biggest global brand deal so far. The goal is to reach more people and grow KitKat’s presence around the world.

The partnership will kick off with the 2025 season. It marks two milestones—90 years of KitKat and 75 years of Formula 1. Starting in 2025 and expanding through 2026, fans will see KitKat featured at F1 events, including giveaways, fan areas, and trackside branding. There will also be contests with prizes like race tickets and merchandise.

Nestle News Summary: Nestle’s Market Positioning Outlook

Nestle is making big changes across its business. It’s cutting costs and increasing its marketing efforts. The company is also reviewing parts of its portfolio and responding to government pressure in countries like France.

At the same time, it’s growing in markets like Vietnam and investing in global partnerships, such as its new deal with Formula 1. These moves show Nestle is working to stay competitive, reach more people, and sharpen its focus.

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