PepsiCo, Inc. made the following accouncement on March 4:
PepsiCo, Inc. (NASDAQ: PEP) today announced senior leadership appointments that support the company's strategic priorities and growth agenda.
"As we pursue our new vision to 'Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose,' we have taken some important steps to reorganize our leadership team. We believe these changes will enable us to better capture growth opportunities by getting closer to our consumers and deploying our global capabilities in a way that allows us to win locally in each of our markets," said PepsiCo Chairman and CEO Ramon Laguarta.
The following moves are effective immediately:
Creation of Global Chief Commercial Officer
- Laxman Narasimhan, currently Chief Executive Officer, Latin America (LATAM), Europe and Sub-Saharan Africa (ESSA), has been appointed to the newly created position of Global Chief Commercial Officer, PepsiCo, reporting to Laguarta. In this new role, Narasimhan will shape PepsiCo's integrated long-term growth strategy and lead the development of world-class commercial and marketing capabilities. Narasimhan will oversee PepsiCo's Global Category Groups, Insights, Commercialization, Design, Global R&D, E-Commerce and Strategy. Silviu Popovici, who has led ESSA reporting to Narasimhan will now be Chief Executive Officer, ESSA and report directly to Laguarta. Narasimhan will continue to lead PepsiCo's LATAM sector on an interim basis.Narasimhan has held several senior leadership positions with increasing responsibility during his tenure at PepsiCo. In his most recent role, he oversaw the company's food and beverage businesses across LATAM and ESSA, with a focus on unlocking new growth opportunities for the two organizations, harmonizing commercial strategies and operating practices, developing talent, and evolving culture. Prior to that, as LATAM CEO, he successfully grew the business, transformed its operating model, strengthened relationships with franchise bottlers, and forged new collaborations with governments and NGOs in pursuit of the company's sustainability agenda. Narasimhan joined PepsiCo in 2012 from McKinsey & Company, where he served almost 20 years in a variety of positions, including as a senior partner, and co-leader of the Global Consumer and Shopper Insights Practice, as well as overseeing the firm's research on emerging market consumers.
Commenting on the appointment, Laguarta continued, "Laxman is the ideal executive to take on this important new role with his vast operating experience, strategic acumen and successful track record unlocking growth opportunities across our businesses and sectors. He will be instrumental as we sharpen our integrated long-term growth strategy and execute our plans to deliver sustainable, attractive marketplace and financial performance."
At the same time, the company continues to delayer operating businesses with a goal of becoming faster and more locally focused. Following the recent moves that Frito Lay North America and PepsiCo Beverages North America will report directly into Laguarta, all leaders of key businesses and geographies will now report to Laguarta, including:
- Kirk Tanner, CEO PepsiCo Beverages North America (PBNA)
- Vivek Sankaran, CEO Frito Lay North America (FLNA)
- Silviu Popovici, CEO Europe Sub-Saharan Africa (ESSA)
- Mike Spanos, CEO Asia, Middle East, North Africa (AMENA)
- Laxman Narasimhan, interim CEO Latin America (LATAM)
- Jim Andrew, EVP Soda Stream and Beyond Bottle Ventures
The above changes will have no impact on PepsiCo's external financial reporting structure. The company will continue to report segments as FLNA, LATAM, Quaker Foods North America, North America Beverages, ESSA, AMENA, consistent with current practice.
Appointment of Chief Science Officer
In addition, the company also announced a change in leadership in its Research and Development organization:
- Dr. Mehmood Khan, Vice Chairman and Chief Scientific Officer, Global Research and Development, will retire from PepsiCo this month. He will remain with the company in an advisory capacity. Over the last decade, Khan led research and development efforts for PepsiCo, driving innovation with new products, packaging and processes, and ensuring that PepsiCo upheld the highest standards of quality around the world. During his tenure, PepsiCo became respected as a worldwide leader in science and innovation, attracting top talent in fields such as agronomy, nutrition, biology, food science and engineering. At the same, Khan was instrumental in defining PepsiCo's sustainability goals while being an active voice externally, urging others to join PepsiCo in its efforts to build a more sustainable food system.
- Rene Lammers, currently Senior Vice President of Category R&D, has been appointed to the role of Chief Science Officer, reporting to Narasimhan. In this role, Lammers will be responsible for building R&D capabilities as we look to continue to expand our product portfolio. In his most recent role, Lammers was responsible for driving an integrated agenda across product, process, equipment and packaging technologies. Since joining PepsiCo in 2010, Lammers has held leadership roles across long-term research, Global Functions, Governance and Compliance and the Global Beverage Category. Prior to PepsiCo, Lammers spent 15 years as an R&D leader delivering differentiated consumer innovations across the CPG industry in a number of global roles.
"Rene is a proven leader with a strong track record of success, and his vision and oversight of our R&D function will be critically important as we work to build a robust innovation pipeline to support our growth," said Laguarta. "On behalf of our executive team and the entire PepsiCo organization, I would like to thank Mehmood for his tireless work at PepsiCo over the last decade building our global R&D technologies and capabilities, shaping our sustainability strategy, and recruiting top talent to our team. I appreciate his willingness to stay on as an adviser to me and the company. We wish him all of the best in his next chapter."
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $64 billion in net revenue in 2018, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than $1 billion each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose. "Winning with Purpose" reflects our ambition to win sustainably in the marketplace and embed purpose into all aspects of the business. For more information, visit www.pepsico.com
Statements in this communication that are "forward-looking statements" are based on currently available information, operating plans and projections about future events and trends. Terminology such as "estimate," "expect," "may," "plan," "position," "will" or similar statements or variations of such words and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include, but are not limited to: changes in demand for PepsiCo's products, as a result of changes in consumer preferences or otherwise; changes in laws related to the use or disposal of plastics or other packaging of PepsiCo's products; changes in, or failure to comply with, applicable laws and regulations; imposition or proposed imposition of new or increased taxes aimed at PepsiCo's products; imposition of labeling or warning requirements on PepsiCo's products; PepsiCo's ability to compete effectively; failure to realize anticipated benefits from PepsiCo's productivity initiatives; failure to successfully complete or integrate acquisitions and joint ventures into PepsiCo's existing operations or to complete or manage divestitures or refranchisings; changes in estimates and underlying assumptions regarding future performance that could result in an impairment charge; increase in income tax rates, changes in income tax laws or disagreements with tax authorities; PepsiCo's ability to recruit, hire or retain key employees or a highly skilled and diverse workforce; loss of, or a significant reduction in sales to, any key customer; disruption to the retail landscape, including rapid growth in hard discounters and the e-commerce channel; climate change or water scarcity, or legal, regulatory or market measures to address climate change or water scarcity; or other factors that may adversely affect the price of PepsiCo's publicly traded securities and financial performance.
For additional information on these and other factors that could cause PepsiCo's actual results to materially differ from those set forth herein, please see PepsiCo's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
|Jamie Caulfield||Carrie Ratner |
|Investor Relations ||Corporate Communications|
SOURCE PepsiCo, Inc.