Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 11 pages
Data source: Published sources
Share a link:
https://casecent.re/p/63068
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
In the mid-1980s, Perrier was the world''s best selling mineral water brand. In February 1990, after the detection of contamination in its bottled water, the brand was almost ruined. Nestle bought Perrier in 1992 and after several unsuccessful attempts to restructure the company, in March 2004, Nestle announced that Perrier was not profitable enough and proposed voluntary retirement for some of its workers. Perrier''s powerful labour union, CGT (Confederation Generale du Travail), opposed the proposal and refused to accept job cuts. Nestle threatened to sell off Perrier or move production elsewhere. With the Nestle management and the CGT at loggerheads, the French finance minister had to intervene to settle the dispute. The case, while highlighting the myriad of problems at Perrier, enables discussion on what possible course of action needs to be taken to revive the beleaguered mineral water company.
About
Abstract
In the mid-1980s, Perrier was the world''s best selling mineral water brand. In February 1990, after the detection of contamination in its bottled water, the brand was almost ruined. Nestle bought Perrier in 1992 and after several unsuccessful attempts to restructure the company, in March 2004, Nestle announced that Perrier was not profitable enough and proposed voluntary retirement for some of its workers. Perrier''s powerful labour union, CGT (Confederation Generale du Travail), opposed the proposal and refused to accept job cuts. Nestle threatened to sell off Perrier or move production elsewhere. With the Nestle management and the CGT at loggerheads, the French finance minister had to intervene to settle the dispute. The case, while highlighting the myriad of problems at Perrier, enables discussion on what possible course of action needs to be taken to revive the beleaguered mineral water company.