PepsiCos John Compton believes moves will "extend our advantage"

PepsiCo's John Compton believes moves will "extend our advantage"

PepsiCo is to create a global snacks unit to improve the way it develops new products around the world.

The US food and drinks giant said yesterday (20 September) that it would set up a "Global Snacks Group" that it hopes will deliver "breakthrough snacks innovation" and promote best-practice from its operations around the world.

The new unit is similar to PepsiCo's "Global Nutrition Group", which it set up last year to develop healthier products in categories including grains, dairy and functional foods.

PepsiCo also announced a second initiative yesterday, with the creation of a "council" to bring together its food and beverage units in the northern, southern and central parts of the US.

The "Power of One - Americas Council" has been formed to take advantage of the "combined scale" of PepsiCo's food and beverage businesses, the company said. 

John Compton, CEO of PepsiCo's food operations in the Americas, will take on responsibility for both initiatives.

"The creation of the Global Snacks Group and Power of One – Americas Council are critical components of our long-term strategy to strengthen and extend our global leadership position in snacks and leverage the power of our combined food and beverage businesses," Compton said. "We believe these new initiatives will help us extend our advantage around the world."

The Power of One initiative is designed "to ensure full coordination across the food and beverage operating systems", PepsiCo said. The company said the move would "create opportunities for value creation from sales, marketing and distribution to back-office operations as well as in complementary food and beverage products".

"Snack and beverage occasions are typically planned together, and the products are both purchased and consumed together," PepsiCo chairman and CEO Indra Nooyi added. "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."