just On Call - PepsiCo CEO hints at structural shake-up ahead
PepsiCo is under pressure to buy Mondelez
PepsiCo's CEO has told analysts to “look beyond the noise” over a call to split the company's beverage and snacks units, while hinting at structural changes early next year.
Indra Nooyi said on a conference call today (24 July) that every part of PepsiCo “is functioning well” and that the company is “hitting our stride”. The comments follow pressure from PepsiCo investor Nelson Peltz for the company to take over snacks and beverage rival Mondelez and hive off its beverage unit as a separate company.
“We do not need large-scale M&A to deliver our goals,” Nooyi said in the call, which followed a strong set of first-half results for PepsiCo. “I would look beyond the noise and I would focus on the performance of PepsiCo, which I feel very good about.”
Earlier in the call, Nooyi suggested that changes in PepsiCo's setup, which has been criticised by Peltz, are in the pipeline.
She said: “We are exploring every possible alternative, including structural alternatives, to further improve our margins. We will provide an update on our efforts in early 2014.”
Nooyi also said new Mountain Dew expression Kickstart was “demonstrating potential” to be another billion-dollar brand for PepsiCo. The “breakfast” energy drink launched in February, and analysts Wells Fargo in May said the brand was off to a strong start.
As we welcome in the New Year, we invite Euromonitor to cast its eye over what 2014 holds for the drinks industry. In the first part of this month's management briefing, the global market research and...
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