Protecting Environmental Services in Vittel, France: A Business Opportunity for the Private Sector

The Vittel water company, owned by Nestle, provides incentives to farmers in France to change their farming practices from intensive to extensive farming in order to reduce nitrate contamination of water sources. As incentives for farmers Vittel took over ownership of land from creditors and provided indebted farmers with long term use right. Payments amounted to 200 Euros/ha/ year for a five-year transition period.  Success factors were the presence of strict legislation on mineral spring water and the formation of a locally based intermediary institution.Moreover Vittel entered into dialogues with farmers on the needs and concerns.  The result is that Vittel was able to protect its strong brand connections to "Grande Source" area.  This is good example of engagement of the private sector in PES. Although the case study has specificities that may not apply elsewhere.