Nestle’s bottled water profits decline as cash-strapped consumers turn back to the tap

Bottled water sales are falling for the Nestle corporation, which bottles its Ice Mountain brand water in Mecosta County. The Los Angeles Times reports that the company’s overall water sales are down 2.9 percent so far this year because budget conscious consumers are buying less bottled water in the United States and Europe.

Not so long ago, bottled water was bubbling. It climbed up the ranks of America’s favorite beverages in recent years, beating out juice to become the third most popular in 2008, according to [the market research firm] Mintel. (Soda is the drink of choice by far, followed by milk.) Sales of bottled water swelled 59% to $5.1 billion from 2003 to 2008, making it one of the fastest-growing beverages. About 70% of consumers say they drink bottled water.

The decline of bottled water is being celebrated by environmental groups.

According to Food &Water Watch, more than 17 million barrels of oil — enough to fuel 1 million cars for a year — are needed to produce the plastic water bottles sold in the United States annually. And about 86% of the empty bottles get thrown into the trash rather than recycled. Beverage companies have responded through recycling initiatives and by buying carbon off- sets.

On its website, Food and Water Watch says that Nestle is also facing political opposition to its water business.

Communities too, are pushing back against Nestle. Just last month, citizens in Michigan prevailed when a court there turned down the corporation’s request to pump more water from an already depleting spring in Mecosta County. Similar struggles have played out in California, Maine, New Hampshire, Wisconsin and Colorado as part of a growing trend to reclaim public water resources from private control.