Who Is Nongfu Spring?
A foreign company with limited accountability threatens Nashua’s water.
Founded in 1996 by Zhong Shanshan in Hangzhou, China, Nongfu Spring is China’s largest bottled water producer, holding a third of the market. It began with water from Zhejiang’s Thousand-Island Lake and expanded into teas, juices, and functional drinks like Farmer’s Orchard and Oriental Leaf. In 2020, it raised $1 billion in a Hong Kong IPO. The company markets its water as “natural,” sourced from 10 Chinese locations, but faced scrutiny in 2013 for adopting lower Zhejiang water standards over national ones, sparking a defamation lawsuit against the Beijing Times.
International Expansion
Nongfu Spring is aggressively expanding overseas to secure water sources and grow its $30 billion packaged water market share. It is finalizing the purchase of Otakiri Springs in New Zealand for its first foreign water source and production facility. As of now, the finalization of the purchase is still pending a Supreme Court decision, which is expected to determine the legality and impact of the expansion of the water bottling operation.
The Nashua purchase, at $67 million for a $15 million property, signals further expansion near critical U.S. infrastructure, raising concerns about water extraction and environmental impact.
CCP Influence on Businesses
In China, the government exerts significant control over private companies, including Nongfu Spring. While not state-owned, businesses must align with CCP policies, comply with strict regulations, and allow government oversight of operations. This includes data sharing, environmental compliance, and strategic decisions, often through Party committees embedded in firms. This structure limits foreign accountability, as local regulators like Nashua’s Environmental Health Department may struggle to enforce standards on a Chinese company.
Why It Matters
Nongfu Spring’s limited accountability as a foreign entity risks Nashua’s water safety. Without robust local oversight, our community faces health and environmental threats. We must act to remove this risk!
Main Sources:
https://www.newsweek.com/new-hampshire-china-water-supply-nongfu-spring-zhong-shanshan-2099705
https://www.nytimes.com/2024/03/26/world/asia/china-nationalists-online-attacks.html
https://www.semafor.com/article/03/11/2024/nongfu-spring-water-under-fire-from-chinese-nationalists
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