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Engaging with LocalCommunities - Case Studies

Read our case studies of engaging with local communities:
• McCloud, California
• Stanwood, Michigan
• Fryeburg, Maine
• Kingfield, Maine

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McCloud, California
In 2003, the McCloud Community Services District (MCSD) invited Nestlé Waters to consider purchasing spring water from MCSD and building a bottled water operation in the town of McCloud, California. After extensive negotiations, MCSD and Nestlé Waters entered into a water purchase agreement and the siting process was begun. During the siting process, some residents and other stakeholders raised concerns about potential environmental, operational and community impacts, as well as about the economic terms of the contract with MCSD for the purchase of the spring water.

In response to these concerns and others raised through the initial environmental review process, and as a result of expanded dialogue with environmental and community groups, Nestlé Waters has agreed to reduce the amount of spring water to be purchased and the size of the proposed bottling facility; Nestlé Waters is also working with third-party scientists to conduct a two-year study of the hydrology and biology of the watershed. The data collected will be used in the evaluation of our proposed water bottling facility, as well as provide valuable new information that can be used by the community to better understand its natural resources. Additionally, we will be conducting studies on air and water quality, traffic conditions, hazardous materials and climate change.

During this time, we will also hold a series of public meetings on the project to provide the McCloud community and other interested stakeholders with an opportunity to convey any issues or concerns regarding the project proposal. This feedback will be used to further refine the new project and will lead to a new environmental impact report.
In addition, we will be working with MCSD to negotiate a new contract that reflects current community priorities and the new project parameters. The new proposed plant is projected to provide approximately 100 jobs in a town of approximately 1,000 people and contribute significant revenue to the community.

We are committed to working together with the McCloud community and stakeholders to find common ground and build an operation that meets the needs and requirements of all parties by advancing a balance of economic, social and environmental objectives.

Stanwood, Michigan
When Nestlé Waters initiated the development of a spring water source and bottling facility in west-central Michigan in 2000, residents and stakeholder groups raised a number of issues and concerns. Major issues included concern over the lack of regulatory and statutory controls governing water withdrawals and potential environmental harm that may result from withdrawals. They also expressed concern about corporate interests’ rights to water, given the needs of other users. Finally, they were concerned that the development of the site would set a legal and trade agreement precedence for shipping water from the Great Lakes basin to other regions.

To address local environmental concerns, we developed a comprehensive monitoring system at our spring water site overseen by outside scientists working on behalf of the company. The system gathers a variety of environmental data that is regularly provided to the Michigan Department of Environmental Quality,local government officials and environmental organizations. After more than six years of spring water production from the site, monitoring data show water levels are stable and that Nestlé Waters’ operations have not caused environmental harm.

To address regulatory concerns, Nestlé Waters joined the National Wildlife Federation,Trout Unlimited (Michigan Chapter), Michigan Environmental Council, Michigan United Conservation Clubs, Michigan State University and other stakeholders in advocating for legislation that set resource protection standards. In fact, regulations for water bottlers were made more stringent than for all other major water use industries.

While we believe that these initiatives will benefit the environment, we know that additional stakeholder concerns exist and are committed to continuing to seek the perspectives of our stakeholders and work with them on solutions.

Fryeburg, Maine
Around 2000, Nestlé Waters began buying spring water for its Poland Spring® Brand from a private water company in Fryeburg, Maine. A resident blamed Nestlé Waters’ water withdrawals for drying up his well. He also accused Nestlé Waters of decreasing the water quality of nearby Lovewell Pond and increasing plant growth in the pond. The town hired an environmental consultant selected by the residents to investigate the claim. The third-party analysis concluded that the decline in the performance of the well was due to an air leak as opposed to a decline in water levels. It also found that the decline in water quality and plant growth in Lovewell Pond was not due to Nestlé Waters’ operations, but to phosphate input to the pond from natural and man-made sources.

To address ongoing concerns about impacts from Nestlé Waters’ operations, we have engaged with stakeholders in a number of ways, including:
• Continued aquifer monitoring and public reporting of data
• Supporting other independent environmental studies
• Opening an office in Fryeburg to facilitate more frequent interaction

We are committed to continuing dialogue with the Fryeburg community and will continue to seek ways to engage with stakeholders in the area. Additionally, Nestlé Waters has collaborated with local and state-wide natural resource groups to strengthen groundwater use regulations.

Kingfield, Maine
In late 2004, Nestlé Waters identified Bradbury Spring near Kingfield, Maine, as a new potential source for our Poland Spring® Brand. Between September 2004 and October 2006, Nestlé Waters conducted a number of meetings with public officials, governmental agency representatives and residents to share our plans and secure a permit. To ensure that community members understood and had opportunity to give feedback on our plans, we conducted public meetings, organized tours of both our proposed Kingfield site and our Hollis, Maine, plant, answered questions submitted by community members and shared 18 months of water monitoring and testing results.

As a result of this process, both local media and residents chose to support the plan. We are scheduled to open the Kingfield plant in late 2008. The facility represents a $60-million investment, will employ approximately 50 to 60 people, and contribute to the local tax base in an economically challenged area of the state.