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.
Coors Light to again sponsor ING New York City Marathon
GOLDEN, Colo. Coors Brewing Company, Manhattan Beer Distributors and New York Road Runners on Wednesday announced today that Coors Light will be the official beer of the ING New York City Marathon 2007 for the third consecutive year.
Coors Light will sponsor parties throughout the New York City metro area and also will provide product to all hospitality events leading up to the race. Once again, Coors Light has developed unique ING New York City Marathon graphics for its cans and packaging, available in participating retail locations throughout the metro area.
Manhattan Beer Distributors, the largest Coors distributor in the United States, will make it possible for runners and spectators to enjoy refreshing Coors Light on Marathon Sunday, providing Coors products to more than 21,000 licensed retailers in metropolitan New York on marathon day.
Nestle outlines “extreme nutrition” build-up plan
LAUSANNE, Switzerland Nestle on Tuesday laid out its plan to become the world’s largest provider of “extreme nutrition,” building up its high-tech health foods, with recent takeovers of Gerber baby foods and Novartis Medical Nutrition helping catapult the company into the No. 2 food spot for babies, hospitals and “pro-active health seekers.”
The world’s largest food company now is providing healthy nutrition products for patients leaving the operating room, cancer patients and is addressing the rising incidence of diabetes and obesity. Nestle also is targeting consumers seeking healthy foods that prevent other maladies or can enhance athletic performance.
“We deal with consumers at the extreme: extremely old, extremely young, extremely frail, or extremely fit,” said Richard Laube, head of Nestle Nutrition.
But integrating the recent takeovers into the group has its challenges that will keep the division busy if it aims to reach its profitability goal in two to three years, according to Laube. Changing formulas in medical foods, such as probiotics or protein levels for example, is more complicated than changed recipes for Nestle’s name-brand foods.
The Nutrition division aims to lift its operating profit margin to 20 percent in the medium term from the 16.9 percent reported at end 2006. “We’ll probably have two or three years in the 16 to 17 (percent) range as we integrate our acquisitions,” Laube said. “We’re on a nice glide path to 20 percent.”