Re Alliance

RNS Number:2133M
Nestle SA
12 May 2005



NESTLE WATERS ANNOUNCES THE CREATION OF A PARTNERSHIP IN ALGERIA AND MOVES INTO
THE MAGHREB


*  Nestle Waters and the Boissons Gazeuses des Freres Zahaf Group
   (formerly Boissons Sidi El Kebir) have signed a partnership agreement in
   Algeria.



*  Nestle Waters is thus consolidating its leadership in the Africa/Middle
   East region with its new key position in the Maghreb country with the 
   strongest growth perspectives.



Paris (France), 12 May 2005


Nestle Waters announced today the creation of a partnership with the Zahaf
brothers, owners of the Boissons Gazeuses des Freres Zahaf Group (B.G.F.Z. -
formerly Boissons Sidi El Kebir), one of the leading players in the beverage
field in Algeria.

Nestle Waters and the Zahaf Brothers are now associates in a joint
stock company called Societe Source de Taberkachent, with Nestle Waters holding
51% of the capital. This corporation has taken over all of the B.G.F.Z. group's
bottled water business, the Sidi El Kebir water brand and has a distribution
agreement that will enable it to take advantage of the network and expertise
developed in Algeria by the B.G.F.Z. group. The company will be headed by
Mohamed Zahaf.


The B.G.F.Z. group (formerly Boissons Sidi El Kebir) was founded in the early
1980s by the Zahaf family. It is specialised in the production and distribution
of bottled waters and carbonated beverages. Since the start of the decade, it
has been the exclusive Algerian bottler and distributor of the Orangina and
Mecca Cola brands. In 2001, the B.G.F.Z. Group added the natural still mineral
water brand Sidi El Kebir to its business portfolio.

At the end of 2004, this brand was in second position on the fledgling bottled
water market in Algeria, with a substantial market share. Sidi El Kebir water
comes from a spring near the town of Blida, 50 kilometres from Algiers.


At 550 million litres, for an annual bottled water consumption per inhabitant of
more than 16 litres at the end of 2004, the bottled water market in Algeria
displays a strong growth potential, with annual growth in consumption at more
than 22% in recent years.


Algeria will play an important role in Nestle Waters' development strategy for
the Africa/Middle East region. Located in the heart of the Maghreb countries,
with 34 million inhabitants and perspectives for double-figure growth in annual
consumption per inhabitant, it represents a veritable growth booster which
should enable Nestle Waters to develop its positions in North Africa. The
partnership thus formed has set a strong growth objective for itself.


This positioning is part of Nestle Waters' strategy, according to the Chairman,
Mr Carlo DONATI : "In addition to our 2 pillars, Europe and North America, we
hope to continue to take advantage of every opportunity to consolidate our
position in other regions of the world without lowering our performance. North
Africa offers real development opportunities for our brands."

For the Chairman of the B.G.F.Z. group (formerly Boissons Sidi El Kebir), Mr
ZAHAF, "This partnership should enable the B.G.F.Z. group (formerly Boissons
Sidi El Kebir) to obtain the development resources it needs to consolidate its
activities in the bottled water sector throughout Algeria. It is also an
opportunity for the group to gain access to the expertise of the global leader
in bottled water, so as to be able to offer Algerian consumers a larger line of
products. In conclusion, this partnership with Nestle Waters will give us access
to other brands to consolidate the attractiveness of our product mix throughout
the country."



Nestle Waters is a global player in the bottled water market, present in 130
countries around the world, with a portfolio containing 77 brands (sold in all
types of packaging, in all distribution channels). Nestle Waters holds the
Number 1 global position in the bottled water market, with a 17.3% market share
and a turnover of more than 5.2 billion euros (8.04 billion Swiss francs) in
2004. With a 9.8% market share, Nestle Waters is also the market leader for
bottled water in the Africa/Middle East region.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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