PepsiCo Reorders Beverage, Food Brands

NEW YORK As part of a realignment of its food and soft drink divisions, PepsiCo said it will establish a PepsiCo Beverages and Foods unit in Chicago, which will include management of its Tropicana, Dole, Gatorade and Quaker Foods brands.

In a statement, PBF chairman and CEO Gary Rodkin said, “We are taking bold steps to make PBF the largest beverage company in North America and to further strengthen and integrate our great breakfast portfolio.”

Five business groups will comprise PBF, the largest being Pepsi-Cola North America, which focuses on the flagship brand and other carbonated and non-carbonated soft drinks. PCNA president Dawn Hudson will continue to lead the group, which will remain at the client’s Purchase, N.Y., headquarters.

The newly formed juices group, which includes Tropicana, Dole and other brands, will be based in Chicago and headed by Greg Shearson, president of the juices operations in Canada, which combined Pepsi-Cola, Quaker, Tropicana and Gatorade in that country. Shearson was promoted to president of the juices group and will be based in Chicago. He replaces Tropicana North America president Jim Dwyer, who will manage the transition before leaving the company.

The Gatorade group continues to be based in Chicago and led by Gatorade president Chuck Maniscalco.

Quaker Foods president Polly Kawalek will continue to lead the Quaker Foods division and continue to be based in Chicago.

Pepsi-Cola/QTG in Canada will continue to be based in Mississauga, Ontario. Company executives are deciding on a successor there for Shearson.

The realignment has resulted in some consolidation of back-office functions such as finance, human resources, public affairs, research and development/concentrate operations and supply logistics, the company said.

“By integrating more of our forces into one location, we can build innovation, go-to-market strength and have many more opportunities for cross-fertilization,” Rodkin added in his statement. “At the same time, we’ll have a tighter, more concentrated organization, with fewer management layers and easier, more efficient and effective ways to work together and get things done.”

As a result of the reorganization, the company said it would cut about 275 jobs in North America.

PepsiCo acquired Tropicana in 1998 and merged with The Quaker Oats Company in 2001.

Omnicom Group’s BBDO in New York is the lead advertising agency for PepsiCo.