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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Proactive Sport | LSE:PAS | London | Ordinary Share | GB0030432735 | ORD 1P |
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0.00 | 0.00% | 0.00 | - |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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PepsiCo Inc. (PEP) said Eric. J. Foss will head the company's bottling business once it completes its acquisition of Pepsi Bottling Group Inc. (PBG) and PepsiAmericas Inc. (PAS).
Foss is currently the chief executive of Pepsi Bottling. PepsiCo in August announced a $7.8 billion agreement to buy its two largest bottlers, Pepsi Bottling and PepsiAmericas. The acquisitions are part of a push to revive its North American beverage business that has been fighting a slump in sales. Investors have been watching closely for details on who would head PepsiCo's new bottling operations after the deals close and for details on how the beverage company will integrate the bottlers.
Foss' experience makes him a good pick given the heavy lifting that will be required to integrate the companies and realize cost and revenue synergies, said ConsumerEdge Research analyst Bill Pecoriello.
The new PepsiCo unit created after the acquisitions, PepsiCo Bottling North America, will account for about three-quarters of its North American volume, PepsiCo said. The unit will remain separate from its PepsiCoAmerica Beverages unit, which will continue to oversee independent bottlers, as well as Gatorade and Tropicana.
"Our focus will be to create a bigger, stronger and faster organization that can better serve our customers and accelerate our growth in North America," Foss said. North American soda sales have been tepid for some time, though there have been signs that the industry may be past the worst fallout from the recession.
Pepsi Bottling's and PepsiAmericas' international operations will be managed by PepsiCo's European business after the merger is completed.
Foss will report to PepsicCo Chairman and Chief Executive Indra Nooyi. A special advisory board also will be established to aid in the transition of the bottling business.
Foss was named chief executive and named to the board of Pepsi Bottling in July 2006, becoming chairman in 2008. He joined the company in 1982, serving in a number of roles, including chief operating officer from September 2005 until he became chief executive.
PepsiCo, Pepsi Bottling and PepsiAmericas shares closed Friday at $60.90, $37.25 and $29.05, respectively. None traded premarket Monday.
-By Anjali Cordeiro, Dow Jones Newswires; 212-416-2200; anjali.cordeiro@dowjones.com
(Tess Stynes contributed to this article.)
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