PepsiCo announces new North American structure

PepsiCo created a new structure for its North American businesses and named veteran leader John Compton as CEO for North America, effective immediately. Compton will report to president and CEO-designate, Indra Nooyi, who will assume the CEO role on October 1. Current PepsiCo chairman and CEO, Steve Reinemund, announced his plans last month to retire as CEO on October 1 and to retire as Chairman in May, 2007.

"This structure will provide even greater coordination across PepsiCo and is the logical next step in the 'Power of One' initiatives we have been pursuing for over a decade. It strikes the proper balance between the leadership and collaboration required to generate continued growth in our North American businesses while maintaining the independence of the divisions which has been such an instrumental part of PepsiCo's success," said Nooyi. "Our individual businesses are headed by extraordinary leaders who are doing an excellent job running their operations, yet there is unquestionably more value to be realized by approaching our consumers and retail partners as a fully integrated enterprise."

PepsiCo's worldwide operations will now be organized into two entities reporting to Nooyi: the new North American division, and the existing PepsiCo International (PI) division, which was formed in 2003 and is led by Mike White. In addition to serving as CEO of PI, White is also vice chairman of the corporation and a member of PepsiCo's board of directors.

"Managing these divisions together in a more holistic and integrated manner, like we've been doing at PI for several years, has proven to be the right formula for growth," said Nooyi. "Since the PI division was created, its businesses are developing successfully and the entire international portfolio has delivered consistently outstanding performance, marked by 13 consecutive quarters of double-digit revenue and profit growth. We are confident the new North American structure will enhance effectiveness and drive added momentum there as well."

Compton, 45, a PepsiCo veteran with 23 years experience in snacks, beverages and foods, had been president and CEO of the Quaker Tropicana Gatorade (QTG) division since 2005. Previously, he served in a variety of roles at Frito-Lay where he ultimately became the division's vice chairman and president.

Reporting to Compton will be Al Carey, president and CEO of Frito-Lay; Dawn Hudson, president and CEO of Pepsi-Cola; the newly appointed president and CEO of QTG, Chuck Maniscalco; the president of PepsiCo Sales, Tom Greco; and Ron Parker, senior vice president of Human Resources and Global Diversity. Parker will report to Compton for North American Human Resources, and will report to Nooyi on Global Diversity, which is consistent with his previous reporting relationship to Reinemund on diversity.

Succeeding Compton at QTG is Chuck Maniscalco, who PepsiCo named president and CEO of the Chicago-based division, which encompasses Quaker foods, Tropicana juices and Gatorade beverages. Maniscalco is another long-tenured PepsiCo leader who started his career with Quaker Oats in 1980. For the past four years he has led the Gatorade/Propel business as President, driving over 17% compounded annual volume growth across those vital brands.

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