Beverage Industry

Industry Issues

November 1, 2007
PepsiCo reorganizes structure, creates three units
PepsiCo, Purchase, N.Y., announced a strategic realignment of its organizational structure. Three major operating units have been formed, including PepsiCo Americas Foods, PepsiCo Americas Beverages and PepsiCo International, from the previous two business units PepsiCo North America and PepsiCo International.
“Given PepsiCo’s robust growth in recent years, we are approaching a size which we can better manage as three units instead of two,” said Indra Nooyi, chairman and chief executive officer, in a statement. “Creating units that span North American and international markets, as well as developed and developing markets, allows us to better share best practices among our North America and international businesses, while providing valuable development opportunities for our senior executives.”
PepsiCo Americas Foods, which includes Frito-Lay North America, Quaker and all Latin American food and snack businesses, will be led by John Compton. He is currently chief executive officer of PepsiCo North America. PepsiCo Americas Beverages includes Pepsi-Cola North America, Gatorade, Tropicana and all Latin American beverage businesses. The unit will be headed by Massimo d'Amore, who is currently executive vice president, commercial, of PepsiCo International.
PepsiCo International includes all PepsiCo business in the United Kingdom, Europe, Asia, Middle East and Africa. Mike White will lead that unit and will assume global responsibility for procurement and information technology. White also will work closely with Nooyi on leadership development initiatives across the company.
Dawn Hudson, chief executive officer and president of Pepsi-Cola North America, has decided to leave the company. She will be succeeded by Hugh Johnston, currently executive vice president of operations.
InterBev, IBWA trade shows to combine in 2008
The American Beverage Association, Washington, D.C., and the International Bottled Water Association, Alexandria, Va., announced the combination of InterBev 2008 and the 2008 IBWA trade shows. The events will be held at the Sands Expo Center in Las Vegas, Oct. 20-22, 2008. Following the combined trade shows, the IBWA’s 50th Annual Convention will continue at the Sands Expo Center through Oct. 24.
“With sufficient time for planning and development, InterBev 2008, combined with the 2008 IBWA Tradeshow, promises to deliver a significantly greater return on investment for both exhibitors and attendees,” said Susan K. Neely, ABA president and chief executive officer, in a statement. “Expansion of InterBev coincides with the many changes and new developments in the beverage industry and points to an exciting event in Las Vegas next fall. I hope everyone can participate.”
“Bottled water continues its phenomenal growth,” said Joe Doss, IBWA president and chief executive officer. “InterBev, combined with the IBWA tradeshow offers our respective member companies a much broader opportunity to experience a larger range of materials and techniques that can enhance their businesses. This joint endeavor can move InterBev and the IBWA shows to a much more valuable position as our companies work to enhance their gains and growth. My advice to all of our members: Come to Las Vegas, experience the excitement. Then apply the new knowledge and equipment to your companies.”
The associations plan to work together to elevate the education and training opportunities at the shows. The InterBev Advisory Committee and the IBWA Education Committee have been working on development of multiple new education tracks to provide the most pertinent sessions for professional development of executives and their team members, the statement said. For more information, visit www.interbev.com .
Drinktec promotes 2009 event at Worldwide Food Expo
European trade show Drinktec welcomed Worldwide Food Expo visitors with a reception held on the show floor in Chicago on Oct. 25. The event was part of Drinktec’s and Wolrdwide Food Expo’s joint marketing partnership. Petra Westphal, exhibition director, informed attendees about Drinktec, the beverage and liquid food technology event to be held in Munich, Germany, Sept. 14-19, 2009. The show is expected to draw 1,500 exhibitors, 70,000 international visitors and cover 140,000 square meters of exhibition space.
The Drinktec team hopes to fill 16 halls at the New Munich Trade Fair Centre with exhibitors ranging from raw materials to operational filling lines. Westphal says all sectors of the industry will be represented, such as members of the beer and brewing industry; soft drinks; milk and liquid dairy products; wine, sparkling wine and spirits; beverage trade; service providers and advertising personnel; and representatives from universities and colleges. In addition, the event will feature a comprehensive supporting program, including a special show regarding Sweetening Concepts, the 3rd PET World Congress and International Fruit World Congress. For more information on the trade show, visit www.drinktec.com .
Beam Global adds new Web site
Beam Global Spirits & Wine Inc., Deerfield, Ill., has launched a newly redesigned company Web site at beamglobal.com. The updated site offers brand features, employee narratives and a historical timeline of Beam Global brands.
New sections to the Web site showcase industry awards for the company’s portfolio of spirits and wines, brand pages that provide facts on heritage and craftsmanship, information on the company’s vision and strategy, career opportunities and a section on the company’s commitment to social responsibility.
Pepsi MidAmerica lauded
Pepsi MidAmerica Co., Marion, Ill., received the 2007 SI EDGE Corporate Recognition Award from Southern Illinois EDGE (Enhancing Development, Growth and Expansion) for corporate citizenship, stable employment and growth.
“Pepsi MidAmerica has been a major industry in Southern Illinois for more than half a century,” said Ray Hancock, president of Illinois Community College System Foundation and founding member of SI EDGE, in a statement. “Continued growth and significant impact throughout the five-state region makes Pepsi MidAmerica more than deserving of this recognition. The Crisp family’s contributions to the region are truly immeasurable.”
Shopper focus offers hope to mid-size and small manufacturers
While Wal-Mart and Procter & Gamble take the top spots on this year’s PoweRanking Study from Cannondale Associates, Wilton, Conn., the report emphasizes an opportunity within the changing retail landscape. The 2007 edition, titled “Local Vigor,” emphasizes the growing trend toward shopper-focused retail environments. Manufacturers and retailers need to collaborate and target specific shopper groups with localized insights and action, the report says. As retail becomes more focused on individual shopper segments, mid-size and small manufacturers have a new opportunity to fill a void at retail.
The title, “Local Vigor,” reflects the industry’s change to focus on the individual shopper. According to Cannondale, the result for the retail world is that “small is the new big.” The concept means retailers are examining small formats as a way to better appeal to consumer needs. Additionally, retailers in the PoweRanking indicate that larger manufacturers have plateaued and mid-size/smaller manufacturers are now filling some of the retailers’ targeted needs.
“The 2007 PoweRanking reflects the emphasis placed by manufacturers and retailers on understanding shopper purchase behavior and its impact at the local level,” said Ken Harris, managing director of Cannondale Associates Inc., in a statement. “A great deal of time and energy is now being devoted to consumer segmentation, trips and mission and customer-specific research. In the end, the knowledge of consumers and how they shop, where they shop and why they shop drives all of the interactions between retailers and manufacturers. All of this is brought to life through local initiatives.”
In addition to the changing retail landscape, the report saw several shifts within its manufacturer and retail rankings.
“Performance shifts in many top 10 manufacturers in 2007 are an eye-opener to the changing CPG retail landscape,” Harris said. “As the environment becomes increasingly shopper-centric, retailers are raising the bar and demanding that manufacturers bring new, focused insights to the store. Mid-size and regional suppliers now have an opportunity to meet retailer needs with targeted shopper information and actionable strategies to help build their equity.”
Following Procter & Gamble, Kraft and PepsiCo rounded out the top three rankings for manufacturers. In ninth place, Coca-Cola showed improvement to a 9.2 percent favorability rating.
On the retail side, Wal-Mart once again captured the top slot, but continued the downturn that began in 2004, falling 7.1 points on the ranking. Both Target and Kroger reported strong gains and maintained the No. 2 and No. 3 spots, respectively. Following Costco, Safeway improved 4.3 points to move into a fifth place tie with Walgreens.
“The PoweRanking retail landscape changed dramatically in 2007 because retailers continue to focus on customer segmentation, alternative store formats and reaching their customers in ways that didn’t exist even five years ago with in-store media and shopper cards,” Harris said.
PoweRankings are determined by questionnaires given to retailers and wholesalers in food, drug and mass merchandiser channels and manufacturers in food, general merchandise and HBC.