Pepsico adds two councils to spiderweb structure

Pepsico, the American multinational behind Pepsi, Mountain Dew and Lay’s, has created two new councils in order to streamline their brands’ needs and strategies. The Global Snacks Group will unite all of Pepsico’s snack brands around the world, whereas the council with the rather comic-like name “Power of One – Americas Council” is joining CEOs and presidents of Pepsico divisions of the New World. Both new councils will be led by John Compton, CEO of Pepsico Americas Foods.

Third Global Group in Pepsico’s structure

 The Global Snacks Group is the third in its kind, after Global Beverages group (for soft drinks) and Global Nutrition Group (for “healthier” brands). While analysts were explaining this move as a sign that Pepsico would split itself in several different companies, like Kraft (Sara Lee) did, the company itself denied. The new councils will not become different subdivisions from a legal point of view: accountants maintain the division in the four “business units” Americas Foods, Americas Beverages, Europe and AMEA (Asia, Middle East and Africa).

Even though analysts have stated that a division of Pepsico in a snack branch and a soft drink branch would be a good idea that would raise Pepsico’s worth for their shareholders, the company has stated it will instead strengthen the ties between the two branches, and possibly try to find ways to sell drinks and snacks combined.