PepsiCo is extending its business plan review

PepsiCo is extending its business plan review

PepsiCo has delayed publication of a review of its business plan for 2012 "and beyond".

The US soft drinks and snacks firm said yesterday (8 November) that it has extended the deadline of its business review, which, when published, will include guidance for 2012.

PepsiCo did not give a reason for the delay in publication, which had been expected in December. The group said only that it "continues to take actions" to build on its strengths, "address near-term challenges" and "achieve our long-term objectives". 

Stifel Nicolaus analysts said that the extension, while not hugely serious in itself, is nevertheless surprising and provides further evidence of the company's internal challenges.

"We have dug around a bit and have little concrete on triggers for the delay," Mark Swartzberg and Aashiv Shah said in a note. "Topics of major business review include strategy and level of marketing spending for North America beverages and level of marketing spending for PepsiCo's snacks businesses."

The analysts added: "In September, we remarked that "leadership, culture, and the outlook for North America Beverages are top concerns among investors, in our opinion, and our view of PepsiCo on these counts has also degraded".

Yesterday, the New York Post reported that members of the PepsiCo board of directors have expressed frustration at the lack of a potential successor to CEO, Indra Nooyi. A number of "marketing missteps" and flat stocks mean that pressure to oust Nooyi "will be hard to ignore" if stock's don't improve, the newspaper reported.

Last month, PepsiCo recorded a 4.1% increase in third-quarter profits. However, while shares edged up by 0.8% on Monday to $62.50, stocks have dropped by 4.3% so far this year.