Beverage Industry

A-B InBev, PepsiCo broker purchasing partnership

October 20, 2009

In a unique agreement, Anheuser-Busch InBev and PepsiCo announced they will jointly purchase goods and services in the United States for their U.S. operations, such as information technology hardware, office supplies, travel and facilities services, transportation, maintenance, and repair and operating supplies.
 
The companies say the agreement allows them to purchase goods and services more efficiently at competitive prices, and effectively manage costs that can be reinvested back into areas that will grow their businesses. A team consisting of procurement experts for each company will focus on common areas of spending and negotiate purchases on behalf of both companies. Specific cost savings will depend on the negotiated terms for each purchase.
 
In other A-B InBev news, the company signed a definitive agreement to sell its Central European operations to CVC Capital Partners for more than $2.2 billion and additional rights to a future payment estimated to be as much as $800 million contingent on CVC’s return on its initial investment. CVC will acquire A-B InBev's operations in Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Romania, Serbia and Slovakia. It also will brew and/or distribute Stella Artois, Beck’s, Löwenbräu, Hoegaarden, Spaten and Leffe in the above countries under license from A-B InBev.
 
A-B InBev will retain rights to brew and distribute Staropramen in several countries, including Ukraine, Russia, the United States, Germany and the United Kingdom. It also will have a right of first offer to reacquire the business should CVC decide to sell in the future.