PepsiCo announces new business unit
PURCHASE, N.Y. In anticipation of the previously-announced mergers with its two largest bottlers, The Pepsi Bottling Group and PepsiAmericas, PepsiCo announced plans to form a new entity comprising the bottling businesses, effective upon closing of the mergers. The new unit will be called PepsiCo Bottling North America.
PBNA will comprise all current PBG and PAS operations in the United States, Canada and Mexico, and will account for about three-quarters of the volume of PepsiCo's North American bottling system, with independent franchisees accounting for the rest. It will focus on integrating the two bottling businesses into a lean, nimble and highly-efficient organization. PBNA will be separate from the brand-oriented PepsiCo Americas Beverages unit, which will continue to oversee independent bottlers and Gatorade and Tropicana operations. The separation will allow greater focus for both units and enable PBNA to continue producing and distributing "allied brands" not owned by PepsiCo.
In addition to the merger, Eric Foss, current chairman and CEO of PBG, the world's largest bottler of PepsiCo beverages, will become CEO of the new bottling unit, reporting to PepsiCo chairman and CEO Indra Nooyi.
Current PBG and PAS operations in Europe and Russia will be managed by PepsiCo Europe when the mergers are completed.
In naming Foss to lead PBNA, PepsiCo is engaging one of the beverage industry's most experienced executives. "Eric is an extraordinarily talented executive with tremendous knowledge of and love for the bottling business," Nooyi said. "We are fortunate to have him lead this new unit."
Added Foss, "I am extremely excited to lead the new bottling entity. Our focus will be to create a bigger, stronger and faster organization that can better serve our customers and accelerate our growth in North America. I am eager to work with the talented people across PAS, PBG and PepsiCo to reenergize our beverage business, drive profitable growth for our customers and sustain a high performance and compelling environment for our people. It is great to re-join the PepsiCo team, and I look forward to accelerating our potential to become a more unified and integrated beverage system."
In order to facilitate a smooth integration of the bottling businesses, PepsiCo will establish a special advisory board. Among its members will be: Eric Foss; Indra Nooyi; Robert Pohlad, chairman and CEO, PepsiAmericas; and Craig Weatherup, founding chairman and CEO of The Pepsi Bottling Group, who retired in 2003. Prior to his PBG tenure, Weatherup served as CEO of The Pepsi-Cola Company and president of PepsiCo.