You are here
PURCHASE, N.Y. -- PepsiCo said yesterday it is conducting a strategic realignment of its organizational structure "to position the company for continued strong growth and more fully leverage the talents of its senior leaders."
PepsiCo previously comprised PepsiCo North America and PepsiCo International, but it will now be organized into three major operating units. Chairman and c.e.o. Indra Nooyi explained that the change was needed given the company's growth in recent years.
"Creating units that span North American and international markets, as well as developed and developing markets, allows us to better share best practices among our North America and international businesses, while providing valuable development opportunities for our senior executives," Nooyi said in a statement.
The company's new operating units and leadership are:
-- PepsiCo Americas Foods (PAF) - Includes Frito-Lay North America, Quaker, and all Latin American food and snack businesses, including the Sabritas and Gamesa businesses in Mexico. John Compton, currently c.e.o. of PepsiCo North America and a 24-year company veteran, will become c.e.o. of PAF.
-- PepsiCo Americas Beverages (PAB) - Includes Pepsi-Cola North America, Gatorade, Tropicana, and all Latin American beverage businesses. Massimo d'Amore, currently e.v.p., commercial, of PepsiCo International and a 13-year PepsiCo executive, will become c.e.o. of PAB.
-- PepsiCo International (PI) - Includes all PepsiCo business in the UK, Europe, Asia, Middle East, and Africa. Mike White, PepsiCo vice chairman and c.e.o. of PI, will continue to lead the unit. He also will assume global responsibility for two strategic corporate functions: procurement and information technology, including the company's business transformation initiatives. In addition he will work closely with Nooyi on leadership development initiatives across PepsiCo.
On a pro forma basis through the first three quarters of this year, PAF accounted for about 45 percent of PepsiCo's revenues, PAB for about 30 percent, and PI for about 25 percent, the company said.
As a part of the organizational changes, Hugh Johnston, currently e.v.p. - operations for PepsiCo, will become president of Pepsi-Cola North America. He succeeds Dawn Hudson, currently c.e.o. and president of Pepsi-Cola North America, who has decided to pursue career opportunities outside the company.
The management changes are effective immediately. PepsiCo said it expects to complete the transition of all responsibilities and changes in management reporting as of the beginning of its fiscal year 2008.