PepsiCo snack, soft drink division better together, says CEO
During a recent appearance on CNBC’s Squawk Box, PepsiCo CEO Indra Nooyi stood firm in her conviction to keep the company’s snack and soft drink division together, despite pressure from notable shareholders. “These two categories are better together, not just in the United States, but around the world,” she said.
Nooyi has fielded significant pressure from shareholders, especially Nelson Peltz, a major Pepsi shareholder, over a division of the two businesses because consumers have shown a clear pivot in their interest in sugary soft drinks, while Pepsi’s snack unit, the biggest in the world, is performing much better. However, Nooyi believes that it still makes sense for Pepsi to govern the divisions in tandem, posing the question on Squawk Box, “If you eat a bag of Fritos, do you reach for a beverage?”