US-based natural spring water bottler Nirvana is suing Nestlé Waters North America for violating a non-disclosure agreement (NDA) and resorting to anti-competitive practices.
Nestle signed the agreement with Nirvana in 2012 after the former expressed interest in buying the latter.
The company has filed a lawsuit in New York State Supreme Court claiming that Nestle has breached NDA and is involved in anti-competitive practices meant to weaken Nirvana or close its business entirely.
Nestle made an aerial survey of Nirvana's property and examined its financial records during the acquisition negotiations. It is allegedly using these details to unedrmine Nirvana's business.
Nirvana claims that Nestle has lowered prices for commercial buyers who agreed to stop selling Nirvana's water and is showing letters to supermarkets indicating that Nirvana approached Nestlé about selling itself, putting to risk customer relationships.
According to the lawsuit, Nestlé has decided to directly pay Stew Leonard's supermarket chain in 2011 to stop carrying Nirvana spring water.
In 2005, Nestlé expressed interest to acquire Nirvana when both the companies were in discussions for co-packing of Nestlé's Pure Life brand. However, Nirvana declined the buyout offer.
