Global alliance between PepsiCo and Anheuser-Busch

PepsiCo and Anheuser-Busch (the US subsidiary of the world’s largest brewer AB InBev) announced the creation of a global alliance. This agreement could be a serious threat to the Coca-Cola company which is a world’s largest beverage company by sales for today.

According to PepsiCo and Anheuser-Busch representatives, these two companies will combine their purchases of items such as office supplies or computers to cut individual costs. No details on estimated savings were given though.

A PepsiCo-AB deal indicates that the strategic partnership between two companies grows reflecting the overall consolidation of soft drinks and beer industries, explain analysts.

ab-inbev_pepsico_01

As for Coca-Cola, it continues to ignore the trend focusing only on soft drinks.

«The PepsiCo-ABI procurement deal should give Coke another reason to pause and ponder the wisdom of distancing the red system further from beer. Coke’s legacy of objection to beer and soft drink integration is obsolete. It defies the reality of the marketplace, logic and the fact that PepsiCo and ABI keep getting closer together,» said Carlos Laboy, the drinks analyst at Credit Suisse.

via Financial Times