Summary on Nestle

In: Business and Management

Submitted By blaine
Words 349
Pages 2
Anchunee Thangbhandit
ECBU 500 I
Instructor: Prof. Jagannathan
July 31, 2007
Summary on “Battling over Bottled Water”
Case Background

Nestle Company has operated a plant in Michigan, which manage by Brendan O’Rourke. Currently, they are producing Ice Mountain bottled-water. To add to this, Nestle wants to increase the amount of water pump so that they can create a bigger market of bottled-water. However, Michigan Citizens for Water Conservation (MCWC), a Mecosta local resident group, worry that the over pumping groundwater will have an effect towards the environment, and consequently, they wanted to stop the Ice Mountain bottled-water plant. Therefore, the main issues for Nestle can be summarized as listed below:
• The Nestle company pumps groundwater, but the ownership of groundwater is controversial. However, there were many arguments regarding Nestle pumping the water from the spring, yet a MCWC’s (Michigan Citizens for Water Conservation) lawyer – Jim Olson agree and explain it under the doctrine of reasonable use which states” the owners of a stream can use its water as long as it’s in connection with their land”. In addition, David K. Ladd argues that the water that was put in the product is no longer water; it is considered a food and is regulated by the Food and Drug Administration.
• In 2003, Nestle was ordered by Michigan state court judge – Lawrence Root to turn off the pumps due to Michigan climate began to change. In addition, a year after Jennifer M. Granholm (the new governor for Michigan, who stopped the expansion of new bottled-water plants) proposed the Water Legacy Act (to protect all state’s groundwater). Therefore, Nestle had to decreased it water-pump to 250 gallons per minute. Previously, many people still think that Nestle was over-pumping the water but the plant manager (Brendan O’Rourke) thinks that they are not over-pumping the…...

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