PepsiCo to restructure food and beverage sectors

PURCHASE, N.Y. PepsiCo said Monday it was going to restructure its operations units, specifically targeting its food and beverage sectors.

The old structure had two divisions: PepsiCo North America and PepsiCo International, which ran their own food and beverage operations. This time around, however, Pepsi said it was going to combine its operational units (making three separate and distinct ones), but divide its food and beverage segments.

“Given PepsiCo’s robust growth in recent years, we are approaching a size which we can better manage as three units instead of two,’’ PepsiCo chief executive Indra Nooyi said in a statement.

The snack food business will include Frito-Lay North America, Quaker and its fast-growing Sabritas and Gamesa brands in Mexico. The beverages unit includes Pepsi-Cola North American, Gatorade, Tropicana and all Latin American beverage businesses. PepsiCo said John Compton, currently chief executive of the North America group, would be the new head of the Americas food division, while Massimo d’Amore, executive vice president of the commercial division of PepsiCo International, will be the chief executive of the new Americas beverage unit.

Mexico and all Central and South American businesses, previously part of the PepsiCo International, will be part of the newly formed PepsiCo Americas Foods and PepsiCo Americas Beverages.

The overhauled international division will also create two executive officers.

The company, which has headquarters in Purchase, N.Y., said its Americas foods division would account for about 45 percent of its revenue while its Americas beverages unit will make up 30 percent. Its international division will account for the remaining 25 percent. PepsiCo International chief executive officer Mike White keeps his current position and takes on new responsibilities. PepsiCo International includes all of PepsiCo’s UK, Europe, Middle East and Africa units.

The company said it would complete the reorganization at of the start of its fiscal 2008 year.

With these changes comes another shift for the company. Dawn Hudson, chief executive officer and president of Pepsi-Cola North America, is leaving the company. She has worked at PepsiCo for 11 years. A spokeswoman declined to give more details.

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