PepsiCo Beverages and Foods Realigns

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PepsiCo Beverages and Foods Realigns

CHICAGO -- PepsiCo today announced a strategic realignment of its PepsiCo Beverages & Foods (PBF) division, a move that will create a major management center in Chicago. The company will restructure its multiple beverage businesses to establish a more integrated liquid refreshment beverage (LRB) organization, as well as realigning its staff and support functions to span all lines of the PBF business.

"We are taking bold steps to make PBF the largest beverage company in North America and to further strengthen and integrate our great breakfast portfolio," said PBF Chairman and CEO Gary Rodkin.

PBF will be organized around five business groups. Pepsi-Cola North America (PCNA), PBF's largest business unit, will remain based in Purchase, N.Y. and focus on brand leadership in the carbonated soft drink (CSD) and non-carbonated LRB categories and managing the network of anchor and independent bottlers. It will continue to be led by PCNA President Dawn Hudson.

A newly formed Juices business unit will combine PBF's Tropicana and Dole juices and juice-drinks brands, including both refrigerated and shelf-stable products, into one integrated management team, which will be based in Chicago. Greg Shearson, president of the recently combined Pepsi-Cola and Quaker, Tropicana Gatorade (QTG) operations in Canada, has been named president of the Juices group.

Tropicana North America President Jim Dwyer, who has been actively involved in the reorganization of PBF's juice businesses, has chosen to leave the company for personal and professional reasons. He will play an important transitional role as the juice groups are integrated.

A unified PBF will produce the single-largest juice and juice-drink organization in the world, according to a Pepsi release.

Gatorade will continue to be based in Chicago and led by Gatorade President Chuck Maniscalco. Quaker Foods will continue to be based in Chicago and led by Quaker Foods President Polly Kawalek.

The combined Pepsi-Cola/QTG businesses in Canada will continue to be based in Mississauga, with Shearson's successor to be named shortly.

A streamlined functional organization will be leveraged against the entire PBF business. It will be comprised of consolidated staff groups to provide support functions that span all of PBF and align with PepsiCo. These leaner operations will include finance, human resources, public affairs, R&D/concentrate operations and supply chain, according to a company release.

"By integrating more of our forces into one location, we can build innovation, go-to-market strength and have many more opportunities for cross-fertilization," Rodkin said. "At the same time, we'll have a tighter, more concentrated organization, with fewer management layers and easier, more efficient and effective ways to work together and get things done.

"PBF has an exceptional brand portfolio," Rodkin continued. "We will present one face to our biggest retail customers. And, with the marketplace constantly moving in new directions, we'll be able to do more than just react to the latest trend. We'll move faster and lead category growth."

For example, Rodkin cited the quickly expanding "better for you" product category as the source of most new industry growth, and an innovation opportunity in which an integrated PBF could excel "by getting new ideas off the drawing board and into the stores faster than anyone. With more diverse, experienced and talented people in one place, PBF will become an incubator of imaginative new products, packages and programs," he said.

Approximately 275 jobs will be eliminated across all PBF locations. Tropicana's Bradenton, Fla., operations and its 1,900 manufacturing and distribution-related positions will continue to be a critical PBF manufacturing and distribution hub.

PepsiCo acquired Tropicana in 1998 and merged with The Quaker Oats Company in 2001. PBF is a division of PepsiCo, one of the world's largest consumer packaged goods companies. Combining the businesses of Pepsi-Cola, Gatorade, Tropicana and Quaker Foods in the United States and Canada, PBF's major brands include: Pepsi, Mountain Dew, Sierra Mist and Aquafina, plus joint ventures with Lipton and Starbucks; Gatorade thirst quencher and Propel Fitness Water; Tropicana Pure Premium not-from concentrate juices; Quaker Oatmeal, Cap'n Crunch and Life cereals; Rice-A-Roni, Pasta Roni and Near East side dishes; and Aunt Jemima pancake mixes and syrups.