Reorganisation for PepsiCo
reshuffled its operations, consolidating overseas operations while
creating new units in its North American businesses.
Following last week's acquisition of Quaker Oats, PepsiCo reshuffled its operations, consolidating overseas operations while creating new units in its North American businesses, reports the Financial Times. Bob Morrison, Quaker's chairman and chief executive, will remain vice-chairman of the merged company and oversee the Gatorade and Quaker food operations in North America separately. PepsiCo sold its Allsport drinks brand to Monarch beverages, and as part of the agreement, PepsiCo agreed not to distribute Gatorade through its North American system for ten years nor will it jointly market the drink with other PepsiCo products in convenience and gas store channels. Quaker's snack and beverage brands have been absorbed into PepsiCo system. Quaker's grain-based snacks, rice cereals and other instant food products are expected to help PepsiCo expand beyond salty snacks and into the more nutritious snack food segment, especially in the breakfast area. PepsiCo is consolidating its international beverage operations under Peter Thompson, who has been president and chief executive of Pepsi-Cola International since 1996. Similarly, the Frito-Lay snack operations and Quaker's food businesses overseas will be merged into one unit called Frito-Lay International. Rogelio Rebolledo, previously head of Frito-Lay's businesses in Latin American and Australia, will lead the new division. PepsiCo is the second largest beverage company behind Coca-Cola though it is now the leader in the non-carbonated American drinks market. Its merger with Quaker Oats further underlines efforts to become a food giant. Snacks make up over 50 per cent of its profits and revenues whereas Coca-Cola remains solely a beverage company. In early afternoon trading, PepsiCo shares rose 47 cents to $44.96.
