FDBusiness.com

PepsiCo is creating the Global Snacks Group (GSG), designed to drive breakthrough innovation across its leading portfolio of global snack food brands. The US-based beverages and snacks group has also announced the formation of the Power of One – Americas Council, which brings together its top food and beverage leaders to leverage the combined scale of the company’s complementary snack and beverage businesses across North, South and Central America.

Both initiatives will be led by John Compton, chief executive of PepsiCo Americas Foods, who will also retain responsibility for the company’s $22 billion snack and food business in the Americas.

The Global Snacks Group will focus on developing a coordinated approach to the company’s global brand portfolio, creating and delivering breakthrough snacks innovation and promoting best practice-sharing around the world. This decision to create GSG advances the company’s multi-year strategy to establish global platforms for marketing, branding and innovation. Previously, PepsiCo had announced the creation of the Global Nutrition Group and the Global Beverages Group.

PepsiCo chairman and chief executive Indra Nooyi.

The Power of One – Americas Council is intended to ensure full coordination across the food and beverage operating systems, while also unlocking opportunities to create value across the business – from sales, marketing and distribution to back-office operations. The new group will also focus on creating opportunities in complementary food and beverage products in ways that are attractive to retailers and consumers.

“The value of this combined portfolio has been greatest in our international markets, which share many activities; and we are now well positioned to realize further benefits inNorth Americafollowing the successful integration of our bottling business,” says PepsiCo chairman and chief executive Indra Nooyi. “Snack and beverage occasions are typically planned together, and the products are both purchased and consumed together. Our new Power of One – Americas Council will help us to better coordinate our manufacturing, sales and distribution activities and align our retail and consumer brand promotions across our portfolio, which will result in greater operating efficiency, speed to market and value.”

The profit and loss responsibilities remain with the company’s four business units – PepsiCo Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe and PepsiCo Asia, Middle East and Africa.