Industry leaders to create new B2B eCommerce marketplace for the foodservice industry in Latin America, Spain and Portugal Agreement builds upon a previous agreement signed by Telefonica and BBVA to develop and provide E-Commerce solutions to Spanish and Portuguese-speaking markets
Cornerstone Internet Solutions (Nasdaq: CNRS), a provider of comprehensive business to business (B2B) solutions, and Telefónica B2B, a leading B2B Net Market Maker, today announced plans for a joint venture in which Telefónica B2B and B2Bgalaxy.com will create an e-Commerce marketplace for the foodservice industry in Latin America, Spain and Portugal. This joint venture will initially offer a solution for the foodservice industry in Spanish and Portuguese speaking markets, and could potentially extend to other industries with similar purchasing needs and behaviors.
“Telefónica B2B will replicate B2Bgalaxy.com’s business model in Latin America, Spain, and Portugal to become the first complete business to business e-Commerce marketplace for the foodservice industry in this region”, said Miguel Milano, Chief Operating Officer, Telefónica B2B.
“B2Bgalaxy’s Powerproduct solution is yet another step in the development of Telefonica B2B’s diverse portfolio of horizontal and vertical marketplaces.”
“We are delighted to be partnering with Telefónica B2B – a leading Net Market Maker – to extend the benefits of our comprehensive B2B solution to Spanish and Portuguese speaking markets,” said David Rowe, President and CEO of B2Bgalaxy.com. “This winning combination creates a dynamic partnership that will prove beneficial to our clients. B2Bgalaxy.com has already demonstrated the ability of its PowerProduct applications to cater to a broad array of domestic clients. This partnership represents the natural evolution of our PowerProducts from purely domestic solutions to those that can be applied on an international level.”
Through B2Bgalaxy.com’s expanding suite of PowerProducts, including PowerPurchasing and PowerVendor, foodservice buyers in Latin America, Spain and Portugal will be able to purchase supplies online from multiple distributors, through a virtual private exchange. This exchange enables members to post a customized inventory list online and requires suppliers to continually submit their latest product prices. The system produces purchase orders based upon best price and availability from buyer-selected vendors, driving down the cost of goods to buyers by as much as 20 percent and significantly reducing the time traditionally devoted to the comparative price shopping process. In turn, the platform will increase the efficiency in the distributors’ sales process and will reduce their costs to access buyers by more than 15%. “This international joint venture further defines our ability to remotely deploy our marketplaces and technology, while operating these marketplaces for our partners, either under a licensed deal or ASP model.” continued Rowe.
About Telefonica B2B
Telefonica B2B was created to develop, manage and lead B2B e-Commerce initiatives in Latin America, Spain and Portugal. Backed by Telefonica S.A., Spain’s foremost private-sector company and the leading telecommunications’ service provider in the Spanish – and Portuguese – speaking world, and BBVA, the leading financial institution in Latin America and Spain, Telefonica B2B will leverage their experience and relationships to create and lead horizontal and vertical eMarketplaces in these markets. Telefonica B2B will offer customers innovative and turnkey solutions, through strategic alliances with leading B2B e-Commerce industry and technology partners.
Telefonica B2B has already begun the process of developing leading eMarketplaces across various industries. Telefonica B2B currently employs over 150 professionals and is operating in Argentina, Brazil, Mexico and Spain, with plans to rapidly expand to lead the Latin America, Spain and Portugal markets.
About Cornerstone Internet Solutions
Cornerstone Internet Solutions operates two subsidiaries, marchFIRST Cornerstone and B2Bgalaxy.com, which are in separate Internet businesses.
The B2Bgalaxy.com subsidiary creates industry-specific business-to-business e-commerce marketplaces that link buyers and sellers through competitive on-line exchanges and focuses on improving member profitability through the use of PowerPurchasing, the award-winning marketplace exchange technology.
FOODgalaxy.com enables restaurants and other food service establishments to post a customized inventory list online and requires suppliers to continually submit their latest product prices. This competitive process drives down the cost of goods to buyers by as much as 20 percent and significantly reduces the time traditionally devoted to the comparative price shopping process. Additional functionality is available to distributors allowing them to reduce their cost of customer acquisition, and their cost of conducting business through the power of the Internet.
marchFIRST Cornerstone, a wholly owned subsidiary of Cornerstone Internet Solutions Inc, is a full-service Internet consulting firm that uses a combination of strategic planning, technology and creative expertise to provide clients with successful solutions in the B2B, B2C, Knowledge Management and Enterprise Integration Domains.
Cornerstone expects to launch a series of marketplaces over the next few years through its B2Bgalaxy.com unit. New marketplaces will be industry-specific, link buyers directly with suppliers and manufacturers and utilize B2Bgalaxy.com’s PowerProduct suite of e-procurement application services.
marchFIRST and the marchFIRST logo are trademarks of marchFIRST, Inc.
Some paragraphs of this news release, particularly those describing Cornerstone’s, FOODgalaxy.com’s and B2Bgalaxy.com’s future business prospects, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of factors, including difficulties in implementing desired features, delays in completing the B2Bgalaxy and various industry specific web sites, including FOODgalaxy.com, technical challenges, cost overruns, changes in design, competition, and so on, any of which could have an adverse effect on the Company and B2Bgalaxy.com and its communities, including FOODgalaxy.com. Factors such as these could have an adverse effect on the Company’s results of operations. In light of significant uncertainties inherent in forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.