Drinks giants Anheuser-Busch and PepsiCo have agreed to jointly purchase indirect goods and services in the US from technology hardware to travel.
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The agreement allows both companies to purchase goods and services more efficiently and at competitive prices, the companies said on Tuesday (13 October), effectively managing costs that can be reinvested back into areas that will grow their businesses.
The deal will apply to goods and services not directly related to making the beverages they sell, such as information technology hardware, office supplies, travel and facilities services, transportation, and maintenance, repair and operating supplies.
A team consisting of procurement experts for each company will focus on common areas of spending and negotiate purchases on behalf of both companies.
In the US, there are many similar goods and services that each company purchases, making the agreement a “good fit” for the specific needs of both companies for their US purchasing, they claimed.
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By GlobalDataSpecific cost-savings will depend on the negotiated terms for each purchase.
Stifel analyst Mark Swartzberg believes the move may ultimately result in “additional cooperation” between the two companies.
“The move validates speculation that the companies have reason to cooperate beyond their existing relationship in Brazil (ABI is Pepsi’s largest independent soft drink bottler, assuming PepsiCo completes its planned acquisition of Pepsi Bottling Group),” Swartzberg said.
“We think it is also reasonable to imagine additional cooperation between the companies, ultimately. Areas that come to mind are joint purchasing of key commodities (e.g., aluminum) and sharing of distribution.”
