Nestle pays 1/4,000 what you pay for water

When you turn on your tap or water your lawn, you are billed about 1.5¢ for every gallon of water you use. In south-east Michigan, this is water that comes from the Detroit river, chlorinated to remove bacteria, e.g. from sewage, and delivered to you by pipe. When Nestle’s Absopure division buys water, it pays about 1/4000 as much — $200/ year for 218 gallons per minute, and they get their water from a purer source, a pure glacial aquifer that has no sewage and needs no chlorine. They get a far better deal than you do, in part because they provide the pipes, but it’s mostly because they have the financial clout to negotiate the deal. They sell the Michigan water at an average price around $1/gallon, netting roughly $100,000,000 per year (gross). This allows them to buy politicians — something you and I can not afford.

Absopure advertises that I t will match case-for-case water donations to Flint. Isn't that white of them.

Absopure advertises that I t will match case-for-case water donations to Flint. That’s awfully white of them.

We in Michigan are among the better customers for the Absopure water. We like the flavor, and that it’s local. Several charities purchase it for the folks of nearby Flint because their water is near undrinkable, and because the Absopure folks have been matching the charitable purchases bottle-for bottle. It’s a good deal for Nestle, even at 50¢/gallon, but not so-much for us, and I think we should renegotiate to do better. Nestle has asked to double their pumping rate, so this might be a good time to ask to increase our payback per gallon. So far, our state legislators have neither said yes or no to the proposal to pump more, but are “researching the matter.” I take this to mean they’re asking Nestle for campaign donations — the time-honored Tammany method. Here’s a Detroit Free Press article.

I strongly suspect we should use this opportunity to raise the price by a factor of 400 to 4000, to 0.15¢ to 1.5¢ per gallon, and I would like to require Absopure to supply a free 1 million gallons per year. We’d raise $300,000 to $3,000,000 per year and the folks of Flint would have clean water (some other cities need too). And Nestle’s Absopure would still make $200,000,000 off of Michigan’s, clean, glacial water.

Robert Buxbaum, May 15, 2017. I ran for water commissioner, 2016, and have occasionally blogged about water, E.g. fluoridationhidden rivers, and how you would drain a swamp, literally.

1 thought on “Nestle pays 1/4,000 what you pay for water

  1. Edward Mccormack

    The great Jonathon Swift once ‘satirically’ proposed a tax on sunlight.Perhaps we should consider a tax rebate for geographic areas inundated by flooding and massive rainfall.

    Reply

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