Giants pledge $250m for e-food exchange

Food: Food and drink joins growing list of online markets

MORE THAN 50 of the world’s biggest manufacturers of food, beverages and consumer goods are on course to have a jointly funded e-marketplace operational by the end of the year.

The new business-to-business exchange, called, will bring together global companies with an annual spending power of around $350bn.

The list of businesses participating in Transora is a Who’s who of multinational consumer products giants. It includes Uni-lever, Procter and Gamble, Coca-Cola, Cadbury Schweppes, Heinz, Johnson and Johnson, Kraft Foods, PepsiCo, Nestlé and Eastman Kodak.

The participants have backed the e-marketplace with start-up capital of almost $250m, and pledged to support it financially until it becomes profitable in its own right.

The trading portal will encompass the entire supply chain, from procurement of manufacturing equipment and raw materials, to onward distribution, to individual consumers.

Transora joins a list of similar ventures across major manufacturing industries in which big players are joining forces to ensure they have a big say in the online future of their industries.

Covisint in the automotive sector, Exostar in the aerospace industry and Steel24-7 in steel and metals production all involve some of the dominant forces in their market. A joint exchange is also under development by the world’s leading petroleum and energy companies.

Judy Sprieser, chair of the Transora steering committee, made it clear just how big an advantage the new e-marketplace would enjoy compared to other online ventures attempting to serve the same market.

‘We are well financed and strategically positioned to shape our own destiny in a way other B2B exchanges cannot,’ said Sprieser, who added: ‘Old economy companies are becoming new economy leaders.’