2nd UPDATE: Anheuser-Busch, PepsiCo To Make Joint Buys In US
October 13 2009 - 7:23PM
Dow Jones News
Beer maker Anheuser-Busch Inbev NV (BUD, ABI.BT) and food and
beverage company PepsiCo Inc. (PEP) agreed to jointly purchase
goods and services for their U.S. operations to get more
competitive prices.
The purchases may include information-technology hardware,
office supplies, travel services, transportation, and maintenance,
repair and operating supplies.
While it is unusual for large independent companies to make
joint purchases, Anheuser-Busch InBev and PepsiCo go back a long
way. AmBev, which is part of the Belgian brewer, is a PepsiCo
bottler in Brazil and several other Latin American countries.
Still, the pact raises questions about how the companies could
collaborate even further, possibly taking advantage of their
distribution capabilities. Industry watchers have often speculated
about the possibility of a wider collaboration between the two
beverage companies, although there are no signs that latest pact
will translate into anything bigger in the near future.
In an e-mail statement, Anheuser-Busch InBev said the agreement
"is nothing more than joint purchasing in the United States for
goods and services for use primarily in U.S. operations." No
further joint activities are being contemplated at this time, the
brewer said.
PepsiCo spokesman Dick Detwiler also said the two companies were
focused purely on jointly purchasing indirect goods and services.
The deal won't involve commodities, he said.
A team of procurement experts for each company will focus on
common areas of spending and negotiate purchases on behalf of both
companies.
Anheuser-Busch Inbev's shares fell 0.2%, to $47.46 in
after-hours trading, while PepsiCo's rose one cent, to $60.61.
-By Anjali Cordeiro, Dow Jones Newswires; 212-416-2200;
anjali.cordeiro@dowjones.com
-By Kathy Shwiff contributed to this article.