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Nestlé Caught Stealing Billions of Gallons of Water from California—No One Arrested

Summary:
Nestlé has been taking more than 60 million gallons of water per year from the San Bernardino National Forest, according to California regulators, which amounts to billions of gallons of water stolen over the past 68 years — without any valid basis of right to the water. A two-year investigation by the California State Water Resources Control Board revealed that Nestlé, which sells water under the Arrowhead brand, lacked the proper permits for the vast majority of the water taken. The State Water Resources Control Board notified Nestlé last week that the investigation had concluded, and that the company doesn’t have proper rights to roughly three-quarters of the water it withdraws for bottling. “Nestlé appears to be taking more water than they likely have the right to

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Nestlé Caught Stealing Billions of Gallons of Water from California—No One Arrested


Nestlé has been taking more than 60 million gallons of water per year from the San Bernardino National Forest, according to California regulators, which amounts to billions of gallons of water stolen over the past 68 years — without any valid basis of right to the water.
A two-year investigation by the California State Water Resources Control Board revealed that Nestlé, which sells water under the Arrowhead brand, lacked the proper permits for the vast majority of the water taken.
The State Water Resources Control Board notified Nestlé last week that the investigation had concluded, and that the company doesn’t have proper rights to roughly three-quarters of the water it withdraws for bottling.
“Nestlé appears to be taking more water than they likely have the right to take,” David Rose, an attorney for the water board’s enforcement section, told KPCC.
The investigation showed that Nestlé extracted roughly 62.6 million gallons of water from the San Bernardino spring each year on average from 1947 to 2015, but that the company only had the right to siphon some 8.5 million gallons yearly.
Essentially, Nestlé has been stealing nearly 55 million gallons of water each year from California for nearly 70 years.
Of course when a corporation does something illicit, like stealing billions of gallons of water over the course of 68 years in an extremely drought-stricken state, no one is held responsible – no one is arrested – and regulators simply recommend that they apply for a new permit. They were simply told that they must conform to California water diversion regulations while providing a timetable for the company to implement required actions.
Conversely, if an individual, without the cover of being a corporate entity, would engage in similar actions, they would be prosecuted to the fullest extent of the law – and would almost certainly be sentenced to jail or prison time.
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Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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