Nestlé Waters ends pursuit of McCloud facility

McCloud, Calif. -

Nestlé Waters North America has decided to withdraw its proposal to build a bottling facility in McCloud.
The decision followed what Nestlé Waters described as “a thorough analysis of its business operations in Northern California,” including the new facility the company has secured in Sacramento that it sees as a replacement for the production expected from McCloud.

Nestlé CEO Kim Jeffery sent a letter to the McCloud Community Services District board of directors and members of the McCloud community communicating the company’s decision and expressing his appreciation for the effort the community has put into its project proposal since its inception.

The company also announced that it is beginning the process of appraising the mill property it owns in McCloud and will consider offers on the property from potential buyers after the appraisal is completed.

“Our company is in a continual process of evaluating our facility sites and water sources,” said Jeffery. “... The people of McCloud have provided valuable input and shown tremendous patience and spirit throughout this process. I want to extend my personal appreciation and gratitude to every Board member, community member and stakeholder involved for their willingness to remain engaged with us along the way.”

Nestlé has been working with the McCloud community since 2003 to site a bottling facility. The plans aroused significant citizen opposition and in recent years included the California Environmental Quality Act process, scientific research on the local watershed and animal habitat, and dialogue with the community and other stakeholders about the proposal.
In the Fall of 2008 Nestlé began studies on the Squaw Valley Creek Watershed and habitat with the goal of establishing baseline data from which to evaluate its project. The studies were designed in conjunction with experts from the University of California, Berkeley and the University of California, Davis, and in coordination with the McCloud Watershed Council and California Trout.

Nestlé said it plans to continue the studies until their scheduled completion in the Fall of 2010 and make the data available to the McCloud community.

Beginning in 2008, the company sponsored a series of community forums on various aspects of its proposed project, including the design and progress of the studies.

The full text of the letter from company CEO Kim Jeffery to the McCloud Community follows:

September 10, 2009

McCloud Community Services District & McCloud Community
P.O. Box 640, McCloud, CA 96057

Dear McCloud Community Services District & McCloud Community,

For the past several years we have worked together to develop a project proposal to build a water bottling facility in McCloud that we believe would be of benefit both to your community and our company. We have sincerely appreciated the time, input and patience both supporters and opponents have shown as all stakeholders considered our evolving project proposal in McCloud. We know that this dialogue has not been an easy process and we are grateful for your willingness to stay engaged and provide us with feedback every step of the way.

The nature and economics of our business require us to continuously evaluate new spring sources and potential project sites. As most of you know, this summer we were able to secure a site for a new bottling facility in the Sacramento area to help supply our customers in Northern California, the bulk of which reside in the Bay Area and Sacramento. The Sacramento plant will allow us to serve our Northern California customers with lower distribution costs and a reduced environmental footprint. As a result, and after conducting a thorough analysis, we have concluded that we no longer have a business need to build a new facility in McCloud and we are withdrawing our proposal to build a bottling facility in your community.
Protecting and sustainably managing the sources for our product has always been part of the mission for Nestlé Waters, and we are continually striving to improve our siting process. Thanks in large part to your input, we have learned a great deal since the time we first submitted our initial project proposal in McCloud. We have solicited and listened to feedback, refined and re-refined our project proposal, and undertaken new scientific studies that will provide important baseline information on the Squaw Creek watershed. The data produced by these ongoing studies can be used by the District and the McCloud community as you make water management decisions and consider other economic development opportunities in the future. Nestlé Waters plans to complete these two-years of baseline studies, and will ensure this information is made available to the District and community.

The importance of the Mill property to McCloud’s history and culture is a theme that we have heard from you since we began this project. At this time we are beginning the process of obtaining a current appraisal of the Mill property. Once that appraisal is completed, we will consider offers on the property from potential buyers.

Once again, let me thank you all for your engagement, consideration, and patience over the past six years.

Sincerely,

Kim Jeffery
CEO, Nestlé Waters North America