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Managing in Troubled Times Case Study
Case Title:
Troubled Times at Perrier
Publication Year : 2005
Authors: Taranjeet Chawla, Sumit Kumar Chaudhuri
Industry: Water and Ice
Region: France
Case Code: TRT0048
Teaching Note: Not Available
Structured Assignment: Not Available
OR
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. 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.
Pedagogical Objectives:
- To highlight the problems of Perrier and possible actions required to revive the company.
Keywords : Perrier; Nestle; Mineral water; Bottled water; CGT (Confederation Generale du Travail); Labour relations; Nestle Waters France; French mineral water industry; Contamination; 35-hour workweek; Managing in Troubled Times Case Study; French labour laws; Green bottle; Naturally sparkling
