Huge…HUGE employer, food and drink Nestle just dropped the news on California liberal lawmakers that they are going to take a “Nestea plunge” of a different kind. Basically they are going to move its operations all the way to a business friendly Virginia…and forget about trying to work with California’s economically strangling business laws.
Nestle USA will be moving its entire headquarters from a Los Angeles suburb to a Virginia city, and it will be taking with this move 1,200 jobs from California.
It was pointed out by IBD writer, Terry Jones that “(a)s many companies have found, California is an awful place to do business.”
“The $26-billion-a-year food conglomerate is discreet, of course, about its reasons, citing a desire to be closer to its core customers and other bland corporate pabulum,” Jones wrote. “But the fact is, Nestle and its corporate brethren in California that actually make things are overtaxed and overregulated, and elected officials treat them not as honored members of the community but as rapacious pirates.”
He also pointed out that there have been other Nestle jobs already lost by California when the company had to move the production of its “Hot Pockets” brand from Calif to Kentucky after it couldn’t gain the permits the company needed to expand.
Really California? Really?
It wasn’t just the taxes and regulations, though. Jones pointed out that “California’s wacky laws have turned the Golden State into a venue of choice for activist groups to file costly class action lawsuits — or to launch anti-corporate PR campaigns against big, wealthy targets like Nestle.
“In recent years, Nestle has faced two such activist-led actions, both spurious: One involves allegations that Nestle improperly documented its anti-slave-labor policies. Not that it employed slave labor, it just didn’t document it online,” Jones wrote. “The other involves Nestle’s selling of California mountain water under the Arrowhead brand, a decades-old business that has suddenly become environmentally incorrect.”
Of course, this isn’t the only massive company to leave California. Toyota and Occidental Petroleum have both up and left to move to Texas.
Actually in addition to this, the Phoenix Business Journal reported that $68 billion in capital has been lost to the state due 1,500 “disinvestment actions”
The maker of this report has also indicated that businesses that are leaving California have saved about 25 to 35 percent in all their operating costs…. ummm HUGE!
Nestle isn’t the first nor the last to leave California unless they start getting some business sense…
Californian liberal lawmakers are poison.
Sign up to get alerts from Joe!