PepsiCo (NYSE: PEP) Chairman and Chief Executive Officer, Roger Enrico announced today his intent to transition from his position as CEO before the end of 2001 and retire as Chairman before the end of 2002. Mr. Enrico also announced that the PepsiCo Board of Directors intends to elect Steve Reinemund, currently PepsiCo President and Chief Operating Officer, to the offices of CEO and Chairman as he vacates both those posts.

Said Enrico: "When I was elected CEO I said I hoped to have the perseverance to stay long enough to get the job done and the wisdom not to remain too long. By the end of 2001, I will have been a part of the PepsiCo team for 30 terrific years. I'm sure it will be surprising to very few people that I now feel it is time to move on to creating a new chapter in my life.

"In my mind, getting the job done meant re-focusing our company on the vibrant convenient food and beverage market. The performance our PepsiCo team has delivered over the last six quarters since the completion of our restructuring clearly demonstrates they have successfully built the capability to consistently deliver healthy mid-to-upper single-digit revenue growth, double-digit earnings growth and higher returns on invested capital.

"Getting the job done also meant assuring we'd have very strong leadership at the top and a powerful team to steer PepsiCo well into the future. Steve Reinemund's outstanding record of performance in his 16 years with PepsiCo, including a stellar year as COO, gives me total confidence that PepsiCo will have enormously capable leadership. Steve's integrity, character, vision, performance standards and people-sense have been extraordinarily well demonstrated.

"I have had many great moments to relish and be proud of in my long association with PepsiCo. Having Steve as my successor, however, is at the top of my list. I look forward to working with him and the most talented and experienced executive team ever at PepsiCo to assure continued stand-out performance and the most seamless transition."

Enrico's announcement is the latest step in a transition process that started more than a year ago with the appointment of Reinemund as President, and subsequently, COO. Since then Reinemund, with Enrico's backing and support, has assembled a team of PepsiCo's most proven and experienced talent to work with him in critical leadership roles. Those appointments include:
  • Naming Al Bru as President & CEO at Frito-Lay North America, Gary Rodkin as President & CEO at Pepsi-Cola North America, Brock Leach as President & CEO at Tropicana, Rogelio Rebolledo as President & CEO of Frito-Lay Latin America/Asia/Australia, and Mike White as President & CEO of Frito-Lay Europe/Middle East/Africa. Those new business heads join Peter Thompson, the President & CEO of Pepsi-Cola International since 1996.

  • Naming Indra Nooyi, the company's chief strategist, as Senior Vice President & Chief Financial Officer, and Peggy Moore as Senior Vice President & Chief Personnel Officer. They join Rob Sharpe, Senior Vice President of Public Affairs, General Counsel and Secretary, and Tod MacKenzie, Senior Vice President of Corporate Communications.

Said Enrico: "I'm convinced Steve now has one of the most enlightened and experienced management teams (with a collective 135+ years experience at PepsiCo) anywhere in corporate America. You don't have to look any further than our results to know how collaboratively they are working. They have given me and the Board tremendous confidence in PepsiCo's future success."

Enrico was named Chief Executive Officer in April of 1996 and Chairman in November of that year. He joined PepsiCo in 1971 as an assistant product manager in the Frito-Lay division. Over the years he played a major role in PepsiCo's growth, running five of its operating divisions and serving as Worldwide Chairman of each of the corporation's then three lines of business -- snack foods, beverages and restaurants. Under his leadership as Chairman and CEO, PepsiCo refocused its resources on its core snack and beverage businesses with the spin-off of its restaurant division as an independent public company, called Tricon Global Restaurants, the formation and IPO of its bottling operations as an independent public company, The Pepsi-Cola Bottling Group, and the acquisition of Tropicana Products. With the completion of those restructuring activities, PepsiCo has enjoyed strong performance in sales growth, market share improvement, earnings growth, and a sharp increase in return on invested capital.

Prior to being named President and Chief Operating Officer in 1999, Reinemund was selected by Enrico to serve as Chairman and Chief Executive Officer for Frito-Lay Worldwide, PepsiCo's largest and most profitable division. He has been a member of the PepsiCo Board of Directors since 1996. During his Frito-Lay tenure, sales grew on average 10% a year and profits doubled as the company launched an array of successful new products and expanded its successful distribution network. In his last year at Frito-Lay, the company achieved greater volume growth than any other major U.S. food company. Before moving to Frito-Lay, Reinemund led PepsiCo's former Pizza Hut division from 1986-1992.