Nestlé and investment firm Platinum Equity have announced plans to establish a new $5.6bn (€4.9bn) joint venture focused on water, hydration and premium beverages.
The new business, named Peranel, will be a global platform with potential implications for the fast-growing functional beverage market.
It will operate as a 50/50 joint venture and bring together more than 30 brands sold across 120 countries.
Peranel's portfolio will include natural mineral water brands S.Pellegrino, Source Perrier and Acqua Panna, alongside Nestlé Pure Life and a range of premium and functional hydration beverages and local water brands.
Headquartered in Paris and led by current Nestlé Waters and Premium Beverages CEO Muriel Lienau, Peranel is expected to operate as an independent company with greater flexibility to invest in its brands, pursue acquisitions and accelerate innovation.
Peranel will retain an in-house R&D team that Nestlé said has contributed to around 120 product launches since 2022, with further products currently in development.
The business is also expected to pursue both organic growth and M&A opportunities, potentially expanding its presence across the increasingly competitive functional and premium beverage landscape.
For the nutraceutical and functional nutrition sectors, the formation of Peranel highlights the growing convergence between traditional beverages and products positioned around health, wellness and hydration.
Beverage companies are increasingly looking beyond conventional soft drinks towards categories linked to hydration, wellness and functional benefits.
Peranel's combination of established global brands, R&D capabilities and potential for portfolio expansion could certainly make the new business a significant player in the evolution of the global premium and functional beverage market.
Nestlé CEO Philipp Navratil said the partnership would give Peranel greater agility to pursue its long-term growth strategy, with continued investment in innovation, premiumisation, operational excellence and sustainability.
The transaction is subject to employee consultation processes and regulatory approvals, with completion expected in the first half of 2027.
