Nestle Waters North America Receives Final Approval to Produce Arrowhead Spring Water in Chaffee County, Colorado

Our commitment in Chaffee County is an important part of our larger effort as a company to further reduce our environmental impact while still providing a healthy bottled beverage to people in this part of the West.

05 Oct 2009 --- The Chaffee County Board of County Commissioners approved a final resolution on September 23 for Nestle Waters North America to produce spring water for its Arrowhead Spring Water Brand.

As part of an overall strategy to regionalize Nestle Waters' business and reduce the company's carbon footprint and costs, Nestle Waters has made a concerted effort to identify sustainable spring sources that will allow the company to better serve its bottled water customers and meet these environmental and fiscal objectives. For several years, Nestle Waters has been evaluating spring sites in Colorado to serve its customers in the Rocky Mountain region.

"We greatly appreciate the decision by the Chaffee County Board of Commissioners today," said Kim Jeffery, President and CEO, Nestle Waters North America. "Our commitment in Chaffee County is an important part of our larger effort as a company to further reduce our environmental impact while still providing a healthy bottled beverage to people in this part of the West. We are working hard to ensure that our operations are sensitive to the needs of the local community and look forward to serving as true partners in Chaffee County."

Nestle Waters will begin the process of securing other permits, such as construction permits, from the County and other agencies in order to begin construction and operation of the project. Nestle Waters will also file for a Substitute Water Supply Plan and Plan for Augmentation to replace its water withdrawals to the Arkansas River. The City of Aurora has approved a lease of its water rights in Twin Lakes to cover the project's withdrawals. According to Nestle Waters' Construction Engineer, Brent Clay, the Chaffee County project should be operational by summer 2010.

As part of the conditions of its 1041 and SLUP permits, Nestle Waters is required to augment - drop for drop - all water collected for spring water production, provide a comprehensive land management plan of the spring sites, to include the hatchery removal and habitat restoration, surface water and groundwater monitoring and mitigation plans, protection of bighorn sheep habitat, streambank and wildlife-friendly fencing, and other environmental, construction, and land use conditions. Long-term hydrologic monitoring, initiated in 2007, will continue throughout the life of the project.

"The permitting process in Chaffee County has been a very thorough procedure with an incredible opportunity to incorporate public opinion into shaping this spring water project," said Bruce Lauerman, Nestle Waters Natural Resource Manager in Colorado. "Our many conversations and meetings over the past two years have helped us modify our project to best meet the needs of local residents and we look forward to providing beneficial opportunities for the community and beginning our next phase of this project."

Included as part of Nestle Waters' commitment in Chaffee County are: a $500,000 endowment for local education initiatives; a permanent conservation easement to protect Nestle's 115 acres along the Arkansas River; in-stream fishing access at the Ruby Mountain and Bighorn Spring Sites; multi-million dollar local contracts to Chaffee County construction companies, programmatic annual giving to locally identified needs in the community; opportunities for environmentally-focused field study with local college and high school students; a comprehensive, wildlife-habitat restoration project of the dilapidated fish hatchery; and a commitment to hire at least 50% of our truck drivers from the local area. In addition, Nestle Waters will have a staffed office during construction and start-up in Chaffee County that will allow the company to manage the project locally and stay involved in community-wide initiatives and activities.