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PepsiCo Unveils New Organizational Structure, Names CEOs of Three Principal Operating Units

PepsiCo announced today a strategic realignment of its organizational structure to position the company 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 chief executive officer. "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."

PepsiCo, which previously comprised PepsiCo North America and PepsiCo International, will now be organized into three major operating units:

  • 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 Americas Beverages (PAB) - which includes Pepsi-Cola North America, Gatorade, Tropicana and all Latin American beverage businesses. Massimo d'Amore, currently executive vice president,Commercial, of PepsiCo International and a 13-year PepsiCo executive, will become CEO of PAB.
  • PepsiCo International (PI) - which includes all PepsiCo business in the UK, 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 Chairman and CEO Indra 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%.

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Frito-Lay North America (FLNA) includes Pepsico's snack operations in the United States and Canada where the company dominates the market with a range of savory snacks brands including Lay's, Ruffles, Doritos, Tostitos, Fritos, Cheetos and Sunchips