PepsiCo Reshuffled Its North American Management
PepsiCo promoted Al Carey from head of North American beverage division to lead all divisions in the region. Al Carey will lead North America's beverages, Frito-Lay and Quaker Foods divisions which generate the biggest market for PepsiCo.
Albert Carey is a veteran in PepsiCo with 30 years of sales experience. He served nearly 20 years in Frito-Lay North America. Prior to this new position, he was leading Pepsico Americas Beverages as CEO.
PepsiCo appointed Carey after Tom Greco, who was leading the Frito-Lay North America left the company. Greco is aiming to pursue CEO position in different industry, outside of food and beverage.
The company promoted Al Carey to CEO and reshuffle its business, integrating beverages and snacks divisions under one leadership. PepsiCo also promoted chief operating officer of North America Beverages Kirk Tanner, and operating chief of Frito-Lay Vivek Sankaran. According to Reuters, Kirk Tanner will become chief operating officer to its North America beverages unit, and Vivek Sankaran is president and COO of Frito-Lay North America.
Regarding the reshuffle, PepsiCo CEO Indra Nooyi told Bloomberg, "PepsiCo's deep bench of world-class leaders and our top-notch talent development capabilities allow us to elevate our next generation of talent into bigger roles."
By far, Frito-Lay is the most profitable business for PepsiCo, as Frito-Lay North America division is accounted for about 24% of the company's total revenue in the fourth quarter. CEO Nooyi has maintained her strategy to combine beverages and snacks division to be under one company.
With the integration, Nooyi stay to her plan. Although activist investor Nelson Peltz had called for separating beverages and snacks division, but Nooyi opposed the idea. Peltz insisted the beverages and snacks were not compatible, and splitting them would generate more of a return for shareholders.
Kirk Tanner is a 24 year veteran in PepsiCo with experience in snacks, beverages and foodservice. He will lead PepsiCo's beverage business in North America reporting to Carey. While Vivek Sankaran joined the company in 2009 from McKinsey and he will lead snack business of PepsiCo and reporting to carey as well.
In her further acknowledgement of the new leadership team, as quoted by Street Insider Nooyi said "Al, Kirk and Vivek are three seasoned and successful leaders who are ready to take on increased responsibility." Three of them are seasoned executives and under their leadership, Nooyi expected a great result for PepsiCo North America.
"They have each played an important part in our recent success and bring unique strengths to their new roles. I have every confidence that they will build on our progress and continue to propel our business forward," Nooyi said further.
Pepsi reorganized its North American operation by appointing Al Carey CEO for all snack and beverage division. Carey will be assisted by Kirk Tanner who oversee beverage division and Vivek Shankaran on snack division.