Beverage Industry

Pepsico Names Nooyi CEO, Restructures Business

September 1, 2006
Pepsico Names Nooyi CEO, Restructures Business

Indra Nooyi has been named chief executive officer at PepsiCo, succeeding Steven Reinemund, and making PepsiCo the largest U.S. firm run by a woman. Reinemund announced he plans to retire from the company next May after 22 years with the company and five as chief executive. Nooyi will take over as CEO in October, with Reinemund serving as executive chairman and a member of the board of directors until May.
Nooyi's previous responsibilities as president and chief financial officer will be divided between PepsiCo Richard Goodman, chief financial officer of PepsiCo International, who will become chief financial officer for the corporation with responsibility for tax, treasury, control, risk management and audit and investor relations; and Hugh F. Johnston, senior vice president, transformation, who has been promoted to the newly created position of executive vice president, operations and will add global procurement and information technology to his responsibilities.
Nooyi has directed the company's global strategy for more than 10 years and led PepsiCo’s last restructuring, including the divestiture of its restaurants, the spin-off and public offering of Pepsi Bottling Group, the acquisition of Tropicana, and the merger with Quaker Oats.
One of the first moves since Nooyi’s appointment has been the restructuring of the North American business. John Compton, president and chief executive officer, Quaker Tropicana Gatorade, has been named chief executive officer for North America. He will be succeeded as head of the Chicago-based division by Chuck Maniscalco, former president of Gatorade/Propel.
PepsiCo now will be organized into the new North American division and the existing PepsiCo International division, led byMike White.