Crystal Geyser Water Company to shut down Calistoga operations end of January

After almost 48 years in business, Calistoga’s Crystal Geyser Water Company’s Sparkling Water operations will stop for good Jan. 31. The end of the sparkling water operation means 28 employees will be laid off. In 2013 the firm had nearly 94 workers, making it the 5th largest commercial employer in the city at that time. The firm had been scaling back production over the past six months.

The decision to close came three years after the company was approved for a 10,000 square foot expansion and had invested over $3 million on extensive renovations, facility improvements and upgraded landscaping since March of 2020 — a process that continued until just the past few months. A shortage of water in times of drought was not the issue. The company had its own well at 501 Washington Street and also trucked in water from other California sites as needed.

A letter dated Nov. 30 from Crystal Geyser Human Resources Vice President Janice Almond said the decision to cease operations was not easy, stating that it was longer financially feasible for the company to participate in a highly competitive, low-priced market for sparkling water products.

The company released this statement in full to the media:

“As a result of market conditions and business challenges the Crystal Geyser Water Company is discontinuing our Sparkling Water product line, resulting in the unfortunate layoff of employees and closure of the Calistoga and Fairfield facilities. This decision was incredibly difficult, and we extend our gratitude to our employees, suppliers, and community members. We highly value the community’s support throughout our tenure. We are committed to assisting affected employees and ensuring a responsible conclusion to our operations in Calistoga and Fairfield. This will impact our sparkling water brand only and will not affect our other brands and products.”

Almond had noted that limitations in Crystal Geyser’s manufacturing operations, which pointed to a lack of future growth potential, was another factor contributing to the decision to discontinue the sparkling water product line.

“We deeply appreciate the steadfast support from the Calistoga community over the many years," said Almond. "Making this decision was difficult, and we want to genuinely thank our employees, suppliers, and everyone in the community for their incredible support.”

She also said Crystal Geyser recognizes the significant impact this decision will have on its employees and that it is committed to assisting them during the transition. The company did not reveal details of the separation package and employees contacted said the details of what is being offered are confidential.

The firm’s Fairfield distribution center will also be closed, however, the company’s bottling plant in Bakersfield will remain open and unaffected by the Calistoga decision and will continue to produce Tejava Tea and the Japanese Sports drink Pocari Sweat.

Crystal Geyser was acquired by the Japanese pharmaceutical Conglomerate Otsuka Holdings Company, LTD, in 1991. The parent company is dedicated to creating new products for better health worldwide.

“It came as a surprise, when I heard the news last November” said Mayor Donald Williams. “Crystal Geyser has always been an active and supportive corporate citizen and a good neighbor willing to donate bottled water for public events, as well as providing jobs for local residents and being an important part of our community infrastructure.”

Williams said Crystal Geyser had also expressed concerns about the distance from it plant to major highways and related costs associated with long-haul transportation for its product. Crystal Geyser bottled water was carried by Cal Mart, Costco, and Trader Joes, among other retailers.

He noted that the economic loss of Crystal Geyser would be light, and would not represent a major cut in revenue or taxes, since the firm is not among the top 25 employers in town.

According to City Council Member Kevin Eisenberg, “In 2009 we lost the Calistoga Mineral Water Company, a subsidiary of Perrier, part of the Nestle family of companies. This is horrible time of the year to learn you are losing your job when people should be enjoying the holidays. It would have been better if they could have waited a few months longer.”

The closure of the sparkling water operation marks the end of an era when Calistoga was the hub of bottled water. Giuseppe Musante came to Calistoga and discovered an effervescent, mineral rich source of water when drilling a well. He was the first to bottle and sell this water at his downtown candy and soda shop in 1920. He would later go on to found the Calistoga Mineral Water Company.

The town’s roots go back even farther to a hot springs resort Sam Brannan opened in 1862 in emulation of the 19th-century spa town of Saratoga Springs, New York. In 2022 alone, the plant produced 85 million bottles of the sparkling water.

Despite Crystal Geyser’s woes, the overall worldwide market for bottled sparkling water remains strong. Fortune Business Insights last year reported that the global sparkling water market was valued at $34 billion and is projected to grow to $85 billion by 2030.

The Calistoga Tribune, Napa Valley Register and the Weekly Calistogan contributed to this report.

Correction, Dec. 21, 2023: Only Crystal Geyser’s Sparkling Water operation in Calistoga will close at the end of January.