PURCHASE, N.Y. -- PepsiCo Inc. has announced a realignment of its organizational structure that the company said will position it for continued strong growth and more fully leverage the talents of its senior leaders.
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 [image-nocss] and international businesses, while providing valuable development opportunities for our senior executives.
PepsiCo, which previously comprised PepsiCo North America and PepsiCo International, will now be organized into three major operating units:
PepsiCo Americas Beverages (PAB), which includes Pepsi-Cola North America, Gatorade, Tropicana and all Latin American beverage businesses. Massimo d'Amore, currently executive vice president of commercial for of PepsiCo International and a 13-year PepsiCo executive, will become CEO of PAB. PepsiCo Americas Foods (PAF), which includes Frito-Lay North America, Quaker and all Latin American food and snack businesses, including the Sabritas and Gamesa businesses in Mexico. John Compton, currently CEO of PepsiCo North America and a 24-year company veteran, will become CEO of PAF. PepsiCo International (PI), which includes all PepsiCo business in the U.K., Europe, Asia, Middle East and Africa. Mike White, PepsiCo vice chairman and CEO of PI, will continue to lead the unit. He also will assume global responsibility for two strategic corporate functions: procurement and information technology, including the company's business transformation initiatives. In addition he will work closely with Nooyi on leadership development initiatives across PepsiCo.On a proforma basis through the first three quarters of this year, PAF accounted for about 45% of PepsiCo's revenues, PAB for about 30% and PI for about 25%.
As a part of the organizational changes, Hugh Johnston, currently executive vice president of operations for PepsiCo and an 18-year PepsiCo veteran, will become president of Pepsi-Cola North America. He succeeds Dawn Hudson, currently CEO and president of Pepsi-Cola NA, who has decided to pursue career opportunities outside the company.
These management changes are effective immediately. PepsiCo expects to complete the transition of all responsibilities and changes in management reporting as of the beginning of our fiscal year 2008.
PepsiCo is one of the world's largest food and beverage companies, with 2006 annual revenues of more than $35 billion. Its products are sold in approximately 200 countries. Its principal businesses include Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 17 brands that generate $1 billion or more each in annual retail sales.
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