PepsiCo announces three-way split

By Neil Merrett

- Last updated on GMT

Related tags Chief executive officer United states North america

PepsiCo today announced it will split its
operations into three separate units in a move to better
harness the growth of its snack and beverage businesses.

The company is currently divided into North American and international segments.

Under the reorganisation the company will operate as three divisions -- PepsiCo Americas Foods, PepsiCo Americas Beverages, and PepsiCo International.

PepsiCo Americas Foods and PepsiCo Beverages will be responsible solely for PepsiCo's brands in North, Central and South Americas.

Company chairperson and chief executive officer Indra Nooyi said that continued growth of its operations had forced PepsiCo to look for new ways to operate as a business.

"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, " she stated.

The Americas food division will be helmed by John Compton, who previously held the position of chief executive officer for PepsiCo North America.

In his new role, Compton will be responsible for the company's various snack operations like Frito-Lay North America, Quaker and Latin American brands such as Sabritas and Gamesa in Mexico.

The company's soft drinks brands in the same region will fall under the banner of the Americas Beverages unit, which will control Pepsi-Cola North America, Gatorade and the company's Latin American beverages.

Massimo d'Amore will act as chief executive officer of the division, having previously held the role of executive vice president of the company's commercial operations.

PepsiCo's chairman Mike White will continue in his role as chief executive officer of PepsiCo international, which controls all of the company's businesses in the UK, Europe, Asia, the Middle East and Africa.

In addition to the role, White will also take up global responsibility for procurement and information technology, the company said.

The decision comes amidst growing profitability of the beverage giant's snack operations in the Americas.

According to PepsiCo, on a pro-forma basis, the Americas food division has accounted for 45 per cent of company-wide revenues for the first three quarters of the fiscal year.

Over the same period, the group's beverage operations generated 30 per cent of total revenues, with the remaining 25 per cent of sales earned through the company's international arm.

Additional changes made to the operational structure include the appointment of Hugh Johnston as president for Pepsi-Cola North America, who will take over from the incumbent Dawn Hudson.

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