US: PepsiCo splits two units into three

By | 5 November 2007

PepsiCo has realigned its company structure in an effort to "more fully leverage the talents of its senior leaders".

The company said today (5 November) that it will split its PepsiCo North America into PepsiCo Americas Foods and PepsiCo Americas Beverages. The new beverage unit, which includes Pepsi-Cola North America, Gatorade, Tropicana and all Latin American beverage businesses, will be led by the current vice-president, commercial of PepsiCo International, Massimo d'Amore.

PepsiCo's international unit, which includes all PepsiCo business in the UK, Europe, Asia, Middle East, and Africa, will continue to be led by Mike White, PepsiCo vice chairman and CEO of PI. He also will assume global responsibility for both procurement and information technology, including the company's business transformation initiatives.

"Given PepsiCo's robust growth in recent years, we are approaching a size which we can better manage as three units instead of two," said Indra Nooyi, chairman and CEO. "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."

As a part of the changes, Hugh Johnston, currently EVP of operations for PepsiCo, will become president of Pepsi-Cola North America. He succeeds Dawn Hudson, currently CEO and president of Pepsi-Cola North America, who has decided to pursue career opportunities outside the company.

The management changes will take immediate effect, the company said.

Sectors: Soft drinks, Water

Companies: PepsiCo, Tropicana, Mike White

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