Pennsylvania Court Rules Perrier Is a Soft Drink

Since 1863, Perrier has marketed itself as selling “natural sparkling table water” from its main source in Vergez, France. It touts its origins at the spa resort of Les Bouillens, creating the impression that Perrier water comes straight out of the ground.

That’s certainly what Jennifer Montgomery thought when she bought a bottle of Perrier at a Sheetz convenience store in Pennsylvania. To her surprise, she was charged 24 cents in state sales tax. 

In 2019, Montgomery sought a refund from the state Department of Revenue and simultaneously sued Sheetz, arguing that it had incorrectly charged her tax on natural bottled water, which is tax-free under Pennsylvania state law. Now, Montgomery has lost her case, at least according to an appellate court. 

Last week, the Commonwealth Court of Pennsylvania weighed in on the five-year legal dispute, ruling that Perrier is carbonated water, and thus is a soft drink subject to state sales tax. In her lawsuit, Montgomery contended that the state’s definition of beverages that were subject to sales tax was ambiguous. According to the statute, retailers can charge tax on a variety of nonalcoholic beverages, “such as soda water, ginger ale, colas, root beer, flavored water, artificially carbonated water, orangeade, lemonade, juice drinks containing less than 25 percent by volume of natural fruit or vegetable juices, and similar drinks.”

But Montgomery contended that Perrier is a naturally occurring water, and is not artificially carbonated, and asked for her 24 cents back. The Commonwealth Court did not buy her argument. “Whether the carbonation in Perrier is natural or artificial is inconsequential to the instant disposition,” the court said in its April 23 opinion. “For purposes of the Tax Reform Code, Perrier is ‘carbonated water’ and subject to tax.”

The legal case includes a lengthy discussion that would impress anyone who has ever sipped from one of Perrier’s famous green bottles. Pennsylvania officials declared that Perrier is carbonated water “because it is manufactured by combining a specific amount of filtered or scrubbed carbonic gas to still water in an industrial plant setting.”

In fact, Perrier acknowledges that on its website. For decades, it collected carbonic gas and water from the same place, then separated them. It chilled the water, removed its air and all traces of carbonization are removed. The water was cleaned, the gas added back in, which restored the bubbles. The level of carbonation was adjusted to create trademark fizz, the water was bottled and sent off to stores worldwide, where Perrier sells about $321 million in products annually. 

However, in 2018, Perrier switched to using an external source of gas, aiming to streamline its process and conserve water. As the court opinion noted, “the processes used are the same used as those for making soft drinks like Coca-Cola and Pepsi. There is no alternative process for carbonating beverages.” 

Thus, despite Montgomery’s perception – and indeed, the perception of many Perrier drinkers around the world – Perrier doesn’t spring from its springs in its final form. It needs a rinse and a jolt before it makes it to market. Sadly, her 24 cents looks lost for good.