PepsiCo Shuffles Internal Leadership, Rewarding Longevity

PepsiCo is shaking up the executive ranks among its various segments, including Frito-Lay and Quaker Foods, as the consumer packaged goods company looks to streamline leadership operations after two years of steady gains throughout the North American market. Starting on July 1, there will be a new president of PepsiCo Foods Canada (PFC), a new president of the Gatorade Performance Portfolio within PepsiCo Beverages North America, as well as new chief customer and chief marketing officers at Frito-Lay North America. “We believe in consistently providing our leaders new opportunities to stretch and grow,” said Steven Williams, CEO of PepsiCo Foods NA. The official impetus for the promotions is a desire to "grow the next generation of PepsiCo leaders,” added his counterpart, Kirk Tanner, CEO of PepsiCo Beverages NA. The company also stressed that keeping the leadership moves internal would allow it to maintain existing efforts to be "faster, stronger, better." Industry moves The implication is that by elevating the careers of a veteran group of executives—the new job assignments have been given to leaders who have been with PepsiCo between five and seven years—means it can avoid the time-consuming and costly training and seasoning associated with bringing in people from outside. While brands and agencies gird themselves for a potential economic downturn with talk of hiring freezes and layoffs, that's not the case at PepsiCo, representatives for the company said when asked about staffing levels at its corporate offices in the near term. (The company did layoff about a 100 workers after closing its Barrington, IL R&D center in April, and lost other employees who elected not to be transferred elsewhere, a source told Adweek.) "PepsiCo continues to be a talent destination that offers employees opportunities across our businesses to grow and develop throughout their careers," a spokesperson told Adweek. "These leadership changes are to bolster our growth across North America." The underlying message to others within PepsiCo seems clear at a time of employee hiring and retention struggles: This is a culture that rewards longevity. Of course, it helps that PepsiCo has had the wind at its back lately. Similar to other CPG brands, Frito-Lay has done well as sales rose during the pandemic. The last two years saw people eating more meals at home while seeking comfort from well-known labels in a time of uncertainty. But as Covid-19 appears to move into a less deadly period, and consumers feel ready to move more freely in the outside world, new forms of unpredictability are hitting CPG marketers. For one thing, the economy has only gotten more volatile. Inflation fears are already causing all brands to pursue new directions, particularly in the area of expressing brand purpose. So the current personnel moves may reflect an anticipatory change in shopping preferences and habits. New kinds of uncertainty In 2021, Frito-Lay North America, the snacks division of parent company PepsiCo, reported $19.6 billion in net revenue, up from $18.2 billion in 2020 and $17.1 billion in 2019. Experts anticipate the growing acceptance of permanent remote work will continue to fuel the industry for years to come. Mondelēz International's 2021 State of Snacking report, for instance, reveals 64% of people around the globe prefer to eat many small meals throughout the day, compared to a few large ones. That's up from 59% in 2019. “I definitely think the work from home trend is going to be very sticky,” Robert Moskow, a senior analyst at investment bank Credit Suisse, told Adweek in December. During Super Bowl 56, Frito-Lay ran a 60-second ad for Lay’s starring Seth Rogen and Paul Rudd. The business also aired another 60-second spot showcasing Doritos Flamin’ Hot Cool Ranch and Flamin’ Hot Cheetos featuring the voices of Megan Thee Stallion and Charlie Puth. NBCUniversal received up to $7 million per 30-second slot during the broadcast. PepsiCo, meanwhile, put $3.5 billion toward advertising expenses in 2021, up from $3 billion in 2020. One of Frito-Lay’s latest national commercials, which promotes the company’s variety packs, includes British R&B artist Mark Morrison singing an altered version of his 1996 hit “Return of the Mack.” Putting players into position As for the specific promotions, those taking on new roles at PepsiCo include: Cara Keating is moving from president of PepsiCo Foods Canada to become Frito-Lay NA chief customer officer. In her new role, Keating will lead the sales function overseeing strategy, sales planning and commercialization for U.S. customer sales organization, with responsibility for retail, ecommerce, PepsiCo customer teams, Hispanic business and foodservice. She's been with PepsiCo for 18 years.Five-year PepsiCo veteran Rachel Ferdinando is moving from her current post as Frito-Lay U.S. CMO to succeed Keating in her present job as PepsiCo Foods Canada's president. Ferdinando will oversee human resources, finance, customer development, field sales, marketing, supply chain, IT, R&D, foodservice and transformation. Before starting at PepsiCo in 2017, Ferdinando was vp and global sector leader for family care at Kimberly-Clark. Another two-decade veteran of the CPG giant, Mike Del Pozzo, is returning to PepsiCo Beverages NA as president and GM of the Gatorade Performance Portfolio. That group includes Gatorade, Propel, Muscle Milk, Evolve and the innovation portfolio. In this role, Del Pozzo will focus on sales, customer management, brand building and strategy. He's been in his current post as chief customer officer of Frito-Lay U.S. for the past three years.Brett O’Brien, the current general manager and svp of the Gatorade Performance Portfolio takes on Ferdinando's current role as Frito-Lay U.S. chief marketing officer. O’Brien, who's been with the brand for a decade, will lead all marketing initiatives, innovation, strategic insights, design and media. PepsiCo On Connecting With Consumers in Web3