The Swiss-based food and drinks giant appears to be one step closer to selling of its water brand Perrier.

As the company admitted it had failed to find a resolution to its ongoing industrial dispute with Perrier workers, it will now look into spinning the business off.

Nestle Waters France and Perrier have been arguing over an early-retirement program after the sparkling water company's CGT union continued to oppose it.

"We must now consult with Nestle," said Andre Sembelie, spokesman for Nestle Waters France was quoted saying today.

Nestle for some months now has said it will spin off Perrier if an agreement is not reached