Food and drinks giant, Nestle, has reached an agreement with the Mexican food company, Grupo Herdez, which will see the Mexican company take over the distribution of the Perrier mineral water brand in southeastern Mexico.

Herdez announced the deal, which was signed at the start of the year, in a filing with the Mexican Stock Exchange.

The mineral water market in Mexico is estimated to be growing by about 7% a year. Penafiel, a carbonated bottled water owned by Cadbury Schweppes, is the market leader.