What happened with Nestlé's water brands?

French authorities launched an investigation into Nestlé over allegations that the company used unauthorized filtration methods for its bottled water brands, including Perrier and Vittel. The investigation stems from a consumer group complaint that questions whether these products were deceptively marketed as natural mineral water when they may have undergone more processing than disclosed.

Why might this investigation create investment opportunities?

When a market leader faces regulatory scrutiny or consumer trust issues, competitors often benefit as consumers seek alternatives. In this case, companies offering alternative water brands, filtration technologies, or regulated water utilities could gain market share as consumers shift their purchasing habits away from brands under investigation.

What types of companies are included in this theme?

This theme includes three main categories: beverage companies with competing water brands (like PepsiCo and Coca-Cola), alternative beverage companies that could attract health-conscious consumers (like Celsius and Vita Coco), and water technology/utility companies that provide filtration solutions or regulated water services (like Xylem and American Water Works).

What is a "water utility" company?

Water utility companies provide essential water services to homes and businesses. They manage the infrastructure for water treatment, distribution, and sometimes wastewater management. These companies are typically heavily regulated by government authorities to ensure water safety and quality. Examples in this theme include American Water Works (AWK) and California Water Service Group (CWT).

What does "event-driven" investing mean?

Event-driven investing refers to strategies that aim to profit from market price movements caused by specific corporate or economic events. In this case, the event is the investigation into Nestlé's water filtration practices, which could create short to medium-term opportunities as consumers potentially shift their preferences to alternative water brands and solutions.

16 handpicked stocks

Pure Water Plays: Investing in Trusted Alternatives

Following investigations into Nestlé's water filtration practices, consumers may seek more transparent water options. These carefully selected stocks represent companies that could benefit from this shift, from beverage competitors to water purification technology providers.

Han Tan | Market Analyst

Published on July 11

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Pepsico, Inc.

PEP

Current price

$141.52

As a primary competitor with its own bottled water brands like Aquafina and sparkling water brand Bubly, PepsiCo could attract consumers losing trust ...

As a primary competitor with its own bottled water brands like Aquafina and sparkling water brand Bubly, PepsiCo could attract consumers losing trust in Nestlé's brands.

Coca-Cola Company, The

Current price

$65.95

Coca-Cola's extensive portfolio, including Dasani, Smartwater, and Topo Chico, is well-positioned to capture market share from Nestlé's water brands l...

Coca-Cola's extensive portfolio, including Dasani, Smartwater, and Topo Chico, is well-positioned to capture market share from Nestlé's water brands like Perrier and Vittel.

National Beverage Corp

FIZZ

Current price

$37.71

The owner of LaCroix, a brand with a strong following in the sparkling water market, could directly benefit from consumers switching from Nestlé's Per...

The owner of LaCroix, a brand with a strong following in the sparkling water market, could directly benefit from consumers switching from Nestlé's Perrier.

Keurig Dr Pepper Inc

KDP

Current price

$25.60

Celsius Holdings Inc

CELH

Current price

$58.90

THE VITA COCO COMPANY, INC

COCO

Current price

$42.71

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+37.73%

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About This Group of Stocks

Our Expert Thinking

This collection focuses on companies that could gain market share as consumer trust shifts away from major bottled water brands under scrutiny. When a market leader faces challenges, competitors and alternative solutions often benefit as consumers seek new trusted options.

What You Need to Know

This is an event-driven investment opportunity targeting companies across beverage, utilities, and water technology sectors. It includes direct competitors to Nestlé's water brands as well as companies offering filtration technology and regulated water utilities.

Why These Stocks

These companies were specifically chosen for their positioning to capture redirected market share. They include established beverage giants with alternative water brands, popular niche beverage companies, and leaders in water purification technology and public utilities.

Group Performance Snapshot

37.73%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 37.73% over the next year.

13 of 16

Stocks Rated Buy by Analysts

13 of 16 assets in this group are rated Buy by professional analysts.

2.9%

Group Growth

This group averaged a 2.9% return last month.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

💧

Trust Is Everything

When consumer trust shifts in essential products like water, market share often follows quickly. These companies are positioned to capture that movement as customers seek alternatives they can believe in.

📊

Multiple Ways to Win

This collection offers diverse exposure to the water market through beverages, utilities, and technology. Whether consumers switch brands or filtration methods, companies in this group stand to benefit.

🔍

Regulation Creates Opportunity

Increased scrutiny of water quality claims could benefit companies with transparent practices and proven purification technologies, potentially creating a new competitive advantage in the marketplace.

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