The split looks like this: PepsiCo Americas Foods includes Frito-Lay North
America, Quaker, and the Latin American food and snack businesses;
PepsiCo Americas Beverages includes North American beverage sales,
including Gatorade and Tropicana; and PepsiCo International includes
business in the UK, the rest of Europe, Asia, the Middle East, and Africa.
With a saturated soft-drink market, the company continues to try new
iterations: In 2007 the company introduced its first vitamin-enhanced water,
called Aquafina Alive. It signed a licensing agreement with Ben & Jerry's in
2006 for the sale of Ben & Jerry's milkshakes in the US, as well as a deal
with Starbucks for the distribution of the coffee purveyor's Ethos water
brand. Hot on the heels of Coke's introduction of Blak, in 2006 Pepsi
launched a coffee-flavored cola, named, Pepsi Max Cino, in the UK.
Venturing further into the non-cola category, PepsiCo acquired sparkling
juice companies IZZE and Naked Juice in 2006. It also began selling
Fuelosophy, a smoothie drink, at organic grocery store chain Whole Foods,
and struck a deal to develop products with juice maker Ocean Spray
Cranberries.
Bowing to the public's growing concern about childhood obesity, in 2006
Pepsi, along with Coca-Cola, Cadbury Schweppes, and the American
Beverage Association agreed to sell only water, unsweetened juice, and low-
fat milk to public elementary and middle schools in the US. As for high
schools, the agreement calls for no sugary sodas to be sold and one-half of
the offered drinks to be water, diet sodas, lemonade, or iced tea. The
agreement was facilitated by former president Bill Clinton.
CEO Steve Reinemund stepped down as CEO in 2006 in order to spend
more time with his family. His replacement was Indra Nooyi, the company's
president and CFO. Indian-born Nooyi, the 11th female CEO of a
FORTUNE 500 company, has been instrumental in strategic decisions at the
company, such as the acquisition of Tropicana and merger with Quaker
Oats.
Shortly after her appointment, Nooyi restructured the top level of power at
the company. She appointed John Compton, previously head of the Quaker-
Tropicana-Gatorade unit, to the newly created position of CEO for PepsiCo
North America, reporting directly to her.
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