US: No major changes ahead, says Pepsi CEO

Indra Nooyi, the recently-appointed chief executive at PepsiCo, has said that there will be no major departure from the strategy of her predecessor.

Nooyi yesterday (23 October) told investors that she has been personally involved in formulating the company's recent strategies. "I don't see any need presently to change a strategy that is working," Nooyi said at an analysts' conference in New York.

She said Pepsi would look to grow sales through focusing more on health and wellness throughout its business.

Dawn Hudson, Pepsi-Cola North America CEO, said the company would look at developing healthier products to rejuvenate its core carbonates business. "We want to give consumers the bubbles they love in a healthier way," she said.

Last month, Pepsi bought US-based Izze Beverage Co. for an undisclosed sum. Izze, based in Colorado, had caught the eye of Pepsi after developing a range of all-natural sparkling fruit juices, which has won favour with consumers. Pepsi CFO Richard Goodman said the company expects to spend US$500m a year on bolt-on acquisitions of the stature of Izze.

Outside the US, Pepsi said it is also looking to expand its footprint globally. Mike White, chief executive of PepsiCo International, said the company generates about 75% of its international sales from only six markets. The statistic, he added, means the company has plenty of room for additional growth.

Nooyi added that Pepsi is on target to meet its annual forecast of a mid single-digit increase in revenues.

Nooyi succeeded Steve Reinemund in the top position at the beginning of this month.